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Old 02-18-2010, 09:16 AM
 
11,975 posts, read 31,780,988 times
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I recently had a sales guy at a DuPage County car dealership tell me that I wouldn't have to pay the City portion of the sales tax if I bought a car in DuPage County, even though I live in the city. He said that the dealership will only collect the state and county portions of the sales tax, and that the city will send a bill a few months after the sale--but that they have no power to collect it and will not even try other than that first notice. He said further that the city sends the notices to get a "shotgun effect", in the hopes that they snag at least a few suckers.

Does anyone have any experience with this? Is this dealer telling me the truth? Are there consequences to ignoring the city sales tax notice? Getting a 1.5% break on a car in DuPage county could sway my dealership choice...

Last edited by Lookout Kid; 02-18-2010 at 10:42 AM.. Reason: Capital "P"
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Old 02-18-2010, 09:24 AM
 
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I recall, when regestering the car/getting the plates, they check the papers to see if you have owned the car for at least 6 months out of the area. If not (such as you just bought it recently, from ANYWHERE in the country), you're paying the Cook county taxes on the purchase price. The only exception is if you bought/received the car from a family member.

So I think if you buy and pay for a car in Dupage county and want to register it in Chicago, the DMV will stick you with the Cook county taxes on top of what you've already paid.
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Old 02-18-2010, 09:26 AM
 
11,975 posts, read 31,780,988 times
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Sorry for the confusion, but I'm not asking about Cook County taxes.... I'm just wondering about the City portion of the sales tax. Also, registration isn't a problem since they take care of that at the dealership as soon as you buy the car, and the tax bill apparently comes months later. The dealer assures me that he lives in the city himself, and that he has done this with multiple car purchases over the years (ignored the notices) with no consequences.

Last edited by Lookout Kid; 02-18-2010 at 09:33 AM.. Reason: typo
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Old 02-18-2010, 01:12 PM
 
Location: Chicago
38,707 posts, read 103,152,881 times
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Car sales tax is based on the address to where it's registered, not where it is purchased. That said, you only pay sales tax if you buy from a dealer. If you buy from a private party, there's a whole different tax schedule based on a combination of age and fair-market value of the car. Bottom line, it's much, much more advantageous tax-wise to buy from a private party.
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Old 02-18-2010, 02:34 PM
 
11,975 posts, read 31,780,988 times
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But the dealer in DuPage County claims he doesn't collect the city portion of the sales tax--just the state and county portions (by "city" I mean "City of Chicago"). This is a reputable dealership with high sales volume--not some fly-by-night operation. My only car purchase in Illinois so far has been in Cook County, so I have no experience to compare this to.
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Old 02-20-2010, 09:16 PM
 
27 posts, read 110,733 times
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What about the Chicago city sticker? Aren't they gonna be able to find out when you go to buy one?
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Old 07-12-2012, 10:47 AM
wwj
 
2 posts, read 25,426 times
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Default Dealer was incorrect

You will have the pay the Chicago city portion of taxes and the Dealer will be the point of collection.

Last edited by SOON2BNSURPRISE; 07-13-2012 at 07:44 AM..
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