The PDF’s below provide considerable detail, coupled with a few examples, regarding accurate Illinois sales tax calculations that comply with Illinois state sales tax guidelines. The calculations are very similar to those of New York and, therefore, can be applied to New York leases. You’re not likely to find a detailed treatment of these calculations on this or any other website. I’ve addressed the sales tax calculations in other LH threads but not to the extent that I’ve provided in the first PDF below. I’m happy to answer any questions including those dealing with one-pay leases. Providing pertinent and useful data, including dealer worksheets, is always helpful and welcome.
I was very nice at the counter but pointed out they wanted to tax me on MSDs and tax. You can’t tax on tax. When I told them they were wrong nicely, two of them said don’t get loud with us we will have you arrested. They were yelling this.
It’s one of the most efficient government entities in the state so imagine.
going to DMV is a game. You have to work them to your favor every time. As my dad always told me, “You can catch more flies with honey, than with vinegar”
I deal with government all the time. The ass kissing I have to do is insane, but it does pay off most times.
No. In my PDF (Sales Tax Calculations), I mentioned at the outset that MSD’s are excluded from sales tax. If you look carefully at the Illinois calculator screen shot below, it states that security deposits are excluded.
One other thing, security deposits are not part of the total lease price as they are refundable. At the end of the lease, only that portion of the security deposit that isn’t refunded (to pay for damage or excess/wear tear) is taxable. So, it makes sense not to tax security deposits at the outset.
I guess I didn’t state that correctly. Are the dealerships not catching this error? I have a lease closing in a few weeks and I am just trying to prepare for it.
I think most dealers depend on their desking software and assume that it is correct. I don’t believe that they have the expertise to do the calculations manually. Mistakes made are generally very small calculation errors and tend to favor the customer.
If you like, PM me with the details of your lease deal and I’ll review all the calculations to ensure you’re not pay more than what is required.
IL tax is always so problematic for me - I have bought in lease back to IL and the SOS has almost never accepted the paper I filled it out.
More recently they have just filled the paper for me and typed everything for me. Just for me to still get a bill from IL Revenue for remaining taxes or when i return the lease i will get billed for underpaid taxes
once they even sent me a check for my Camaro LT1 because the dealer calculated the numbers wrong - that dealer is now closed RIP Gary Lang Chevy
best case is just send it to the State and hope for the best - i even called them once and got assistance and yet i still got billed.
