HB1923 Summary

• Eliminates the trade-in value exclusion from "selling price" for all tangible personal property, including motor vehicles, reversing a January 1, 2020 provision that had included motor vehicle trade-in values exceeding $10,000 in the tax base.

• Modifies Illinois Vehicle Code motor vehicle use tax rates effective January 1, 2022, establishing new tiered tax amounts based on vehicle selling price and age rather than the previous percentage-based system.

• Equalizes the tax rate for motorcycles, motor driven cycles, and mopeds with other motor vehicles starting January 1, 2022, replacing the previous flat $25 rate.

• Makes conforming changes to the Use Tax Act (35 ILCS 105/2) and Retailers' Occupation Tax Act (35 ILCS 120/1) definitions of "selling price" to exclude traded-in property credits across all goods.

• Takes effect immediately upon becoming law.