CAR OF ILLINOIS FAX
2014 SPRING SESSION ADJOURNS
The General Assembly wrapped up the Spring Legislative Session after midnight last Saturday. Before adjourning, the legislature approved a $1.1 billion capital bill funding package for roads and bridges projects across the state. They also approved a $35.4 billion dollar budget for the upcoming fiscal year.
Despite passing the capital funding bill, lawmakers headed home with many budget issues being unaddressed until after the November elections.
The major issue is the state budget and the looming expiration of much of the temporary income tax hike. The temporary tax hike is set to expire on January 1, 2015 - most likely, lawmakers will address this issue after the elections.
Other issues lawmakers took a pass on include the following: Reforming municipal police and fire pension plans, raising minimum wage, gambling expansion and a 3% surtax on incomes above $1 million.
With an important election this fall, lawmakers typically avoid voting on controversial issues. The Governor's race pits incumbent Pat Quinn, (who has advocated for the income tax extension), against Republican Bruce Rauner, (who supports deeper spending cuts and is against the tax extension). Also, all 118 House seats are up for re-election, as are third of the Senate seats.
DEALER ISSUES:
For the 2014 Legislative Session, IADA/Dealers enjoyed a successful year pushing our legislative agenda. The following four dealer issues were addresses this session:
LEASE TAX BILL SIGNED INTO LAW
Monday, April 21st, Governor Pat Quinn signed Lease Tax Bill (HB2317) at a special signing ceremony in Chicago with IADA and CATA leadership present. Beginning January 1, 2015, House Bill 2317 will change the tax base for motor vehicle leases from the selling price of the leased vehicle to the amount of the lease payments. On March 4th, on a vote of 110-0, The Illinois House of Representatives passed HB 2317. This legislation passed out of the Senate 55-0 last Spring.
This was IADA's third time we passed this legislation through the General Assembly, twice this legislation was vetoed. Special thanks to all dealers who got involved pushing for this legislation to become law.
DEFEATING THE REPEAL OF SUNDAY CLOSING LAW
We were successful in defeating Senator Jim Oberweiss'(Republican - Sugar Grove) attempt to repeal the current Sunday Closing Law with regard to vehicle sales.
Senator Oberweiss, who appears to be on a missionregarding this topic, made several legislative attempts to pass this legislation. Finally, due to a lack of support from the Senate Transportation Committee members - this issue was held for this year.
Senate Bill 2629 would have repealed the provisions prohibiting the sales of motor vehicles on Sunday. Senator Oberweiss had little support from fellow committee members and eventually pulled this issue prior to committee vote. Also, his attempt to send this bill to a more favorable committee was also denied. He also indicated that he will re-introduce this legislation next year.
IADA would like to thank dealers and employees for their calls, emails and notes to their local elected officials on this issue.
REMOVAL OF DEALERS 1.75% RETAILERS COLLECTION ALLOWANCE - HELD
Due to Illinois budget concerns for 2014, all possibilities were being discussed as potential funding sources. One of the items being discussed was the elimination of the 1.75% Retailer's Collection Allowance that dealers/retailers keep as their reimbursement for serving as the state's tax collector and remitter.
Due to a lack of support, this issue was held for this year.
"BUY AMERICAN ONLY VEHICLES" - DEFEATED
HB 3861 "Buy American" bill requires Illinois state governments to purchase or lease ONLY cars assembled in the United States. Under this legislation, the state would be permitted to discriminate against GM, Ford & Chrysler, in favor of automobiles assembled in the United States by foreign manufacturers using non-union workers.
HB 3861 passed the House Chamber but was held in the Senate Chamber. This legislation was held due to concerns that GM, the Manufacturers Association and IADA expressed regarding the exclusion of certain vehicle models assembled in Canada.
IADA will be providing an End of Session Report to the membership in the near future. Thanks again for all dealer involvement on these key issues.