State Of Illinois Third Party Trade Agreement

Documents and records that attest to a trade-in loan used for a given transaction must be kept by the dealer and buyer and made available to the department for review or verification. With the exception of pre-trade-trade-in transactions in which a vehicle is offered for negotiation by a person other than the buyer for the benefit of the purchaser, the owner of the vehicle must authorize in writing that the vehicle is offered to trade in the interest of the buyer. The written authorization must be specific to the transaction and identify the vehicle for which the owner`s vehicle is exchanged. IADA sells advanced credit forms. If the distributor is minimus and SOT is not calculated on the sale of services, the sub-service must pay either the tax indicated separately for the parts or 50% of the total bill. Taxable costs are thus set and no additional tax is due on the fees charged by the merchant to the customer. If the sub-official does not charge tax to the merchant, the user fee is due by the merchant either on the part fee indicated separately or on 50% of the subcontractor`s total bill. Since most merchants are not mini-cars and charge SOT for repairs, they should provide the sub-service with a resale certificate in order to purchase the service tax-free. The merchant should charge the SOT customer either the separate fee for the parts, or 50% of the total bill to the customer. 2) Extended guarantees: Extended warranties are repair contracts for a given item for a specified period after the expiration of a manufacturer`s express warranty. An extended warranty is not included in the sale price of the item covered by the extended warranty and, for this reason, the sale price of the expanded warranty is not subject to the retailer`s property tax and user tax when the item is sold in the retail trade. Therefore, repairs under an expanded warranty lead to a tax liability.

Extended guarantees are a form of maintenance contracts and are subject to tax, as are maintenance contracts are subject to the dealer credit, which means a down payment on the merchant`s books if the buyer is contractually obliged to make a purchase within nine months of the pre-negotiation trade. Leasing means a real rent for a vehicle for more than one year. An exceptional tax of $15 applies if the relationship between the buyer (or the assignor) and the seller (or seller) is considered to be one of the following direct family members: spouse, parent, brother, sister or child. The $15 exception tax also applies if the vehicle is a discount gift to a beneficiary other than a surviving spouse. The title awarded must be on behalf of the qualified direct family member who sells, transfers or receives the motor vehicle. Finally, only a $25 tax applies to motorcycles and ATVs. If the merchant does not use the decal image, the merchant must indicate either the buyer`s non-governmental license plate with the name of the state of residence or the purchase number in the corresponding area of the ST-556 form. Some states impose their own revenue taxes on non-government customers. If you sell a vehicle to a customer who calls it in one of these countries, you must charge the Illinois customer VAT at the foreign state tax rate, or 6.25%, as the case may be.

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