Cook County Board President Toni Preckwinkle today introduced an amendment to lower tax rates on the transfer of motor vehicles between county residents.
Beginning August 1, an individual transferring ownership of a motor vehicle nine years or older will be subject to a $90 tax. Vehicles four to eight years old will be subject to a $175 tax. Vehicles three years old or newer will pay a $225 tax. A $25 tax rate will continue to apply to transfers between immediate family, business transfers under certain circumstances and transfers to beneficiaries of an estate.
“Government needs to be responsive to the concerns of its residents, which is why we are implementing a more equitable policy with lower tax rates,” President Preckwinkle said. “We listened to people from all over Cook County, and worked with members of the County Board to fashion a fair and sustainable compromise.”
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.
“The proposed amendment is the right thing to do,” said Commissioner Elizabeth Gorman (R-17th), who is a co-sponsor. “We should not be placing an unfair financial burden on our county residents, especially those who are on the lower end of the earning scale. After initial discussions for a full repeal of the tax, this compromise reached with the President’s administration is a step in the right direction. This amendment will make it more fair and equitable for person-to-person car buyers.”
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 amendment was referred to the Finance Committee.
Also co-sponsoring the ordinance are Commissioners Gregg Goslin (R-14th), John Fritchey (D-12th), Jesus “Chuy” Garcia (D-7th), Robert Steele (D-2nd) and John Daley (D-11th), Chairman of the Finance Committee.