Cook County Board Approves Lower Tax Rates for Vehicle Transfers Between Non-Retailers
On May 8, 2013 the Cook County Board of Commissioners today approved an amendment to lower tax rates on the transfer of motor vehicles between county residents.
The new rates, which take effect August 1, set a $90 tax on the transfer of motor vehicles nine years or older. Vehicles four to eight years old will be subject to a $175 tax. Vehicles three years old or newer will pay a $225 tax. Vehicle transfers between immediate family, certain business transactions and transfers to beneficiaries of an estate, will continue to have a $25 tax rate.
“This amendment will provide a lower and more equitable tax rate on the transfer of motor vehicles between County residents,” President Preckwinkle said. “After listening to constituents throughout the County, we responded with a compromise solution that reduces the burden on taxpayers.”
The amendment also creates a new tax rate for the transfer of motorcycles. Beginning August 1, it will cost $90 for each transfer. The $25 rate for family, businesses and estates will also apply to motorcycle transfers.
The initial transfer tax ordinance was overly aggressive, but through the cooperative efforts of President Preckwinkle and her office we have now lessened the financial burden on county residents, especially for low income earners and young people who are first-time car buyers and have limited resources,” Commissioner Elizabeth Gorman (R-17th) said.
Previously, vehicles five years or newer were subject to a $225 tax, while vehicles between six and 10 years were subject to a $200 tax and vehicles 11 years or older were subject to $175. Motorcycles were subject to the same levy as motor vehicles under the previous ordinance.
The County projects the ordinance change will be revenue neutral due to greater enforcement. It is expected to raise $7.8 million in FY 2013.