Illinois tax rip off
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Illinois tax rip off
Posted: March 22 2007 03:59 PM
 
Harold Browning (aka PHATN40) [ View ] [ hmb44@hotmail.com ] [ Car Ads ] [ Blogs ]
Quincy, Illinois
(217) 224-1386
 
Has anyone in Illinois purchased a collector car in the past year or so, paid the sales tax per the local DMV, and then received a tax bill from the state for several hundred more dollars. The letter they send says that the car you purchased is worth thousands of dollars more than the bill of sale that was provided at the time of tiltle transfer. I received such a letter for a car I purchased, and three people here in Quincy have received letters in the past few weeks. The extra tax usually runs from $800.00 to over $1200.00, and includes late fees. I called Springfield and ask how the supposed value was calculated and was told it came from various publications and the internet. I ask how they could determine a value without seeing my car and they said they did not have to see it to value it. This practice is a complete rip off and we have contacted our state representatives. Just wondering if anyone else has been subject to this abuse of power.
 
 
Comments
 
Posted by eriq  -  03/22/2007 04:03 PM
no matter how much money we pay in taxes, government will always want more. sorry to hear about this Harold!
StreetRodding.com Webmaster [ View ] [ Email ] [ Blogs ] [ Car Ads ] Palm Harbor, Florida
 
Posted by jbergman  -  03/22/2007 05:05 PM
The trick is not to buy from a dealer, from a private individual it will only cost you $25.00 if I remember right. These cars that are sold through these consignment places I guess are considered dealers also. It is just like buying an old tractor from a farm supply place you pay full sales tax on a 1952 JD and if it is in real good shape you pay the tax on the full selling price. That tractor has probably collected tax 10 times are more depending how many times it has been sold.
jbergman [ View ] [ Email ] [ Blogs ] [ Car Ads ] Waterloo, Illinois
 
Posted by DavyJ  -  03/22/2007 05:38 PM
In Ontario, any car over 20 yrs has to be appraised, then you pay tax on the appraisal.Some people found out the new law the hard way. Bought a basket case and built the whole car before bothering to change the title. Went in with the $500 receipt and then had to pay tax on a finished rod. As for after the fact taxing, i would get hold of a state representative, maybe NSRA or SEMA. maybe they can help
Still driving the wife's car, cause I am slow. [ View ] [ Email ] [ Blogs ] [ Car Ads ] Niagara Falls, Canada Charter Member since February 2005
 
Posted by 32Canuck  -  03/22/2007 09:58 PM
In British Columbia Canada any new vehicle sold is subject to a 7% PST (Provincial Sales Tax) and a 6% GST (Federal Tax ). If it is bought used through a dealer or a private individual then you only pay the PST. So as someone said above, if the vehicle is sold 100 times the Govt will get their taxes owing 100 times. The purchaser gets a "Bill of Sale" whether or not it is the actual price paid or a dummy B of S showing a lesser amount to beat paying all of the taxes owing. As far as the value of the vehicle goes it is the insurance company that determines the insured value. In our case when we registered the car into the Prov. of BC we only had to pay the PST owing. The value was later determined by having an appraisal done. I know all this rhetoric won't help you in the US, so all I can say is good luck at trying to brow beat the MVD in Illinois.
32Canuck [ View ] [ Email ] [ Blogs ] [ Car Ads ] Victoria BC, Canada Charter Member since December 2006
 
Posted by tlp1968  -  03/22/2007 07:48 PM
Harold I am sorry to hear this, I am an Illinois resident, do you need anyone else to write letters? This is a bad deal, probably something the Governor had a hand in.....he cannot seem to get enough of our money.
StreetRodding.com Marketing Director [ View ] [ Email ] [ Blogs ] [ Car Ads ] Springfield, Illinois Charter Member since August 2003
 
Posted by kylew  -  03/22/2007 09:33 PM
Haven't heard of it at the state level yet but similar here in some counties. They have picked up on Barrett-Jackson and the hot rod TV shows. They claim to now have "blue books" and word is they have rejected written appraisals and fixed value insurance documents.
kylew [ View ] [ Email ] [ Blogs ] [ Car Ads ] Charleston, West Virginia
 
Posted by REBORN55  -  03/22/2007 10:21 PM
I have not heard of that before. Must be something new. According to DMV you only have to pay 25.00 tax on cars over ten years old and up to 14,000 value from a private individual. After the 14,000 they start adding more tax. Need to get a letter writing campaign going and flood the politicians with letters. There is no way this should happen. Sounds like something old Jesse White instigated with Hot Rod B's OK. Last car I registered was last Nov. and had no problem. Must have just enacted the ripoff.
Ken [ View ] [ Email ] [ Blogs ] [ Car Ads ] De soto, Illinois
 
Posted by da34guy  -  03/22/2007 10:45 PM
The land of the free!!!! As the old saying goes--- God Bless America for free enterprise! Wouldn't want to live anywhere else!!!!!!!!!!!!!!!!
Don [ View ] [ Email ] [ Blogs ] [ Car Ads ] Prescott, Arizona Charter Member since October 2001
 
Posted by brian41chevy  -  03/22/2007 11:09 PM
Never heard of this before Harold.
There is a fine line between hobby and mental illness [ View ] [ Email ] [ Blogs ] [ Car Ads ] New Lenox, Illinois Charter Member since November 2004
 
Posted by tlp1968  -  03/23/2007 12:14 AM
I was just talking to my husband about this and he said the other day his buddy was paying a speeding ticket and good ole Govenor Rod has put a tax on speeding tickets. It added $25.00 to cost of his ticket!! I think Rod wants to run everyone out of Illinois!
StreetRodding.com Marketing Director [ View ] [ Email ] [ Blogs ] [ Car Ads ] Springfield, Illinois Charter Member since August 2003
 
Posted by PHATN40  -  03/23/2007 11:56 AM
It doesn't matter if you buy from a dealer or private party. If "someone" in Springfield thinks your collector car is worth more than your bill of sale states, they send you a new tax bill. I showed my bill of sale to the local DMV, and paid my $25.00, as required per the local office, and still received the letter from the state. In Illinois, any car valued under $15,000 is an automatic $25.00, if you buy from an individual. $15,001 and up is $750.00. At some point, the rate changes again, but I am not sure what the plateau is. I had two more calls last night from local people with the same problem. I find it hard to believe the state has singled out Adams County as the only place to do this, but perhaps we are a trial group. Who knows what our wonderful governor is going to do next???
PHATN40 [ View ] [ Email ] [ Blogs ] [ Car Ads ] Quincy, Illinois Charter Member since July 2004
 
Posted by PHATN40  -  03/23/2007 12:21 PM
I just received an email from two more rodders that received letters concerning extra tax from a different area in the state, so I guess it isn't just Adams County. We have two NSRA state reps. within 75 miles. I will contact them this weekend, as well as our government officials. I hope this isn't the tip of the iceberg and other states will follow with the same B/S.
PHATN40 [ View ] [ Email ] [ Blogs ] [ Car Ads ] Quincy, Illinois Charter Member since July 2004
 
Posted by REBORN55  -  03/23/2007 12:35 PM
The State of Illinois and the DMV is good about raising fees and not even telling their own employees about it. They raised a couple of fees last year on certain plates and never even told the DMV. Funny how they can judge what your car is worth sight unseen. I had a 57 Chevy a few years back that was involved in an accident. The other driver got a ticket but had no insurance. Said he would pay--got appropriate estimates and sent them to him. Never heard back(not local driver). Called DMV in Springfield and they told me that the damages to the car were more than the car was worth. Fender , bumper, grille damage. I asked why and he said the car was old and not worth anything. Told him it was a classic. he made me get appraisals as to what the car was worth and jump through all kinds of hoops. Finally got my money. Amazing how little a car is worth when they have to help you, but when it benefits them it is worth a fortune. Let us know if we can help. Illinois is getting ridiculous
Ken [ View ] [ Email ] [ Blogs ] [ Car Ads ] De soto, Illinois
 
Posted by PHATN40  -  03/23/2007 12:57 PM
Thanks for all the comments. It may take a mass mailing effort to the our state government officials to get any results. I think this new process is a long way from being over for the automobile lover in Illinois. I have to wonder how this will affect our hobby/sport in the future.
PHATN40 [ View ] [ Email ] [ Blogs ] [ Car Ads ] Quincy, Illinois Charter Member since July 2004
 
Posted by aroldfut  -  03/23/2007 02:06 PM
Harold, the tax scheme reminds me of my years in California....taxes on your taxes. One more reason Arkansas looked so good when it came time to retire. Any vehicle 25 years old here is an antique and can be renewed for $25. If you get an "Antique" license plate it's free for the life of the car.

P.S.....it was 80 degrees here yesterday...
aroldfut [ View ] [ Email ] [ Blogs ] [ Car Ads ] Russellville, Arkansas Charter Member since August 2003
 
Posted by orphans2  -  03/24/2007 10:07 AM
This smacks of "taxation without representation". A couple of hundred years ago a boat load of tea was dumped in the water because of crap like this. I'd be checking out new places to live.
orphans2 [ View ] [ Email ] [ Blogs ] [ Car Ads ] Stewartstown, Pennsylvannia Charter Member since November 2001
 
Posted by PHATN40  -  03/24/2007 10:25 AM
Orphan2, funny you should mention that. Just last night I contacted a realtor in Hannibal, MO to begin a search for a new abode. Hannibal is just 20 miles south of us. He said the hard part is finding something with a six car garage. I told him no problem, my cousin is a contractor, we will build the damn garage with the money I save in taxes!!!
PHATN40 [ View ] [ Email ] [ Blogs ] [ Car Ads ] Quincy, Illinois Charter Member since July 2004
 
Posted by farmer  -  03/24/2007 11:44 PM
Harold, before you jump the river be sure to check out Missouri's tax structure it can be just as loopy as it is here in Illinois...... But then again no Blago!
farmer [ View ] [ Email ] [ Blogs ] [ Car Ads ] Carthage, Illinois
 
Posted by jimmothershead  -  03/26/2007 11:19 AM
ALWAYS review the law/statue within the four corners of the document. Beauracrats have been known to do a PFA.......pluck from air.
Jim [ View ] [ Email ] [ Blogs ] [ Car Ads ] Huntingtown, Maryland
 
Posted by tlp1968  -  03/26/2007 02:56 PM
Yesterday my mother asked me why I think Illinois is so great. With the crappy taxes, crooked Govenor, and not the prettiest landscape. I guess my hubby's state job and my friends are the only reason we stay.
StreetRodding.com Marketing Director [ View ] [ Email ] [ Blogs ] [ Car Ads ] Springfield, Illinois Charter Member since August 2003
 
Posted by farmer  -  03/26/2007 03:24 PM
Tammy, you forgot the best reason of all ...... our wonderful climate and as far as landscape you need head over our way between the rivers.
farmer [ View ] [ Email ] [ Blogs ] [ Car Ads ] Carthage, Illinois
 
Posted by PHATN40  -  04/06/2007 09:36 AM
Just wanted to add an update on this situation. All but one of the people in Quincy have resolved their extra tax situation, thanks to our local State Senator, John Sullivan. We contacted his office, as a group, and he went straight to the state and questioned the practice of sending out the letters. Our advice to anyone receiving such a letter, requesting extra tax that is not owed, to contact your local representative. Good luck to anyone that receives a letter in getting a resolution. If we all stick together, perhaps the practice will stop.
PHATN40 [ View ] [ Email ] [ Blogs ] [ Car Ads ] Quincy, Illinois Charter Member since July 2004
 
Posted by EZRodder  -  04/06/2007 11:29 AM
I am really glad you solved your problem and got the right help. You cannot fight the government by yourself without great expense.

I followed this thread when you first posted it and government tax abuse really gets me riled. Without reading the law, on the surface their whole concept seemed dead wrong. After all, it is called a "SALES" tax, not a personal property, estate, or inheritance tax. Sales tax is a tax on the amount YOU paid, Period!! - not the amount somebody else may pay.
EZRodder [ View ] [ Email ] [ Blogs ] [ Car Ads ] Bernville, Pennsylvannia
 
Posted by PHATN40  -  04/07/2007 09:17 AM
Thanks EZRodder, that is our argument, tax on the amount paid, not on what someone thinks it is worth. Two more people have received letters this week and are going through the steps as we did. One of them was told it would be four weeks before the state would even be able to review their case due to the tremendous stack of complaints they now have. This is Illinois State wide, not just Adams County. Beware!!
PHATN40 [ View ] [ Email ] [ Blogs ] [ Car Ads ] Quincy, Illinois Charter Member since July 2004
 
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