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question about how sales tax works on new Prius purchase in Illinois

Discussion in 'Dealers & Pricing' started by Hamburglar, Dec 30, 2012.

  1. Hamburglar

    Hamburglar New Member

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    I want to buy a 2012 Prius Three, and I'm having difficulty comparing the out-the-door prices I'm getting from different dealers. I live in Cook County but not Chicago. I've read that dealers just charge the sales tax where they are, but then you get billed for the difference by the government, so I don't want to be deceived by a lower price I'm getting from a dealer in a collar county if I'm going to later get billed for more sales tax by Cook County. Can you please clarify how sales tax works in Illinois for new vehicle purchases? Also, how would this work if I decide to get quotes from dealers in Wisconsin or Indiana?

    Extraneous questions: Are there any current incentives on the 2012 Gen III Prius Three? Are any expected in 2013? Do you happen to have any recs for Toyota dealers in Chicagoland and beyond?

    thanks!
     
    #1 Hamburglar, Dec 30, 2012
  2. ftl

    ftl Explicator

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    It looks like you'll pay the same tax no matter where you buy in Illinois, but why not just ask the dealers you're working with how much the tax will be? But I think you really should start with the base price and look at all the add-ons, many of which are negotiable, rather than just comparing OTD.

    Here's a site with some info:

    Illinois Use Tax

    Illinois use tax are taxes that are assessed on most vehicles through the Secretary of State Licensing Division. The tax covers items that sales tax has not been applied to, which typically is during the transfer of a new vehicle.

    The rates of this tax are determined by the buyer’s address.
     
    #2 ftl, Dec 30, 2012
  3. Hamburglar

    Hamburglar New Member

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    One of the dealers in a collar county is claiming I would pay a lower sales tax rate if I buy from them, so I'm confused.
     
    #3 Hamburglar, Dec 30, 2012
  4. JimN

    JimN Let the games begin!

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    Get everything itemized so you know how much you are paying for everything. You can't save on sales tax. If too little is collected at the time of sale you'll pay the difference when you register the car. Dealers will collect the sales tax for whatever jurisdictions they are licensed in. Dealers close to a border are licensed on both sides. For example, a dealer in Philadelphia will also be licensed to collect NJ sales tax for NJ buyers.

    Ask your DMV about the sales tax issue. Apply that info to whatever the out of residence dealers tell you.
     
    #4 JimN, Dec 30, 2012
    ftl likes this.
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