County Board Passes Gorman-Sponsored Amendment to Cut Cook County’s Non-Retailer Transfer Tax of Motor Vehicles

County Board Passes Gorman-Sponsored Amendment to Cut Cook County’s Non-Retailer Transfer Tax of Motor Vehicles

Chicago, IL – The Cook County Board unanimously passed today the proposed amendment to cut the County’s Non-Retailer Transfer of Motor Vehicles Tax. Sponsored by Commissioner Elizabeth “Liz” Doody Gorman, this amendment’s main drive is to lessen the financial burden of purchasing a car, person to person.

The issue came to the forefront for Commissioner Gorman when her office was contacted by a constituent whose teenage son was hit hard by the new transfer tax after his recent first car purchase.  According to the teen’s mother, her son ended up paying a nearly 30% county tax on his used car purchase.  The teenager paid $600.00 for the auto and then was slapped with the $175 county transfer tax fee.

“The initial Transfer Tax ordinance was overly aggressive. But, through the cooperative efforts of President Preckwinkle and her office we have now lessened this financial burden on county residents, especially for low income earners and young people who are first-time car buyers and have limited resources,” stated Commissioner Gorman.

The original ordinance was passed November 2011 (effective March 1, 2012), to apply a tax to the transfer or purchase of a motor vehicle that is titled or registered from a non-retailer (Private Party), at a location in Cook County, with an agency of the State of Illinois (Ordinance 11-0-109) Chapter 74 – Article XVII.   

Commissioner Gorman initially pushed for a full repeal of the transfer tax stating, “It’s an excessive tax that punished low income earners and young people in particular.” The State of Illinois, City of Chicago, and now Cook County all have transfer taxes but it was Cook County that was the hardest hitting. 

The County’s Bureau of Finance made the new recommendation for fair and equitable tax administration, policy and enforcement, the Bureau of Finance has recommended adjusting the tax rates without reducing budgeted revenue. 

The new rates, which take effect August 1, set a $90 tax on the transfer of motor vehicles nine years or older.  Vehicles four to eight years old will be subject to a $175 tax. Vehicles three years old or newer will pay a $225 tax.  Vehicle transfers between immediate family, certain business transactions and transfers to beneficiaries of an estate, will continue to have a $25 tax rate.

Commissioner Gorman said, “Passing this amendment was the right thing to do. Looking out for the taxpayer must be our priority, especially for those at the lower end of the earning scale.  This amendment will now make it more fair and equitable for person to person car buyers.”

Commissioner Elizabeth ‘Liz’ Doody Gorman, Republican from Orland Park, was first elected in 2002 to represent the 17th District on the Cook County Board. She has been a strong advocate for tax reform, budget and operational efficiencies, especially in the area of new technology. Liz has also worked hard for greater transparency throughout Cook County government and for making the Forest Preserve District a national leader in the areas of recreation, restoration and conservation.

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Chicago, IL – The Cook County Board unanimously passed today the proposed amendment to cut the County’s Non-Retailer Transfer of Motor Vehicles Tax. Sponsored by Commissioner Elizabeth “Liz” Doody Gorman, this amendment’s main drive is to lessen the financial burden of purchasing a car, person to person.

The issue came to the forefront for Commissioner Gorman when her office was contacted by a constituent whose teenage son was hit hard by the new transfer tax after his recent first car purchase.  According to the teen’s mother, her son ended up paying a nearly 30% county tax on his used car purchase.  The teenager paid $600.00 for the auto and then was slapped with the $175 county transfer tax fee.

“The initial Transfer Tax ordinance was overly aggressive. But, through the cooperative efforts of President Preckwinkle and her office we have now lessened this financial burden on county residents, especially for low income earners and young people who are first-time car buyers and have limited resources,” stated Commissioner Gorman.

The original ordinance was passed November 2011 (effective March 1, 2012), to apply a tax to the transfer or purchase of a motor vehicle that is titled or registered from a non-retailer (Private Party), at a location in Cook County, with an agency of the State of Illinois (Ordinance 11-0-109) Chapter 74 – Article XVII.   

Commissioner Gorman initially pushed for a full repeal of the transfer tax stating, “It’s an excessive tax that punished low income earners and young people in particular.” The State of Illinois, City of Chicago, and now Cook County all have transfer taxes but it was Cook County that was the hardest hitting. 

The County’s Bureau of Finance made the new recommendation for fair and equitable tax administration, policy and enforcement, the Bureau of Finance has recommended adjusting the tax rates without reducing budgeted revenue. 

The new rates, which take effect August 1, set a $90 tax on the transfer of motor vehicles nine years or older.  Vehicles four to eight years old will be subject to a $175 tax. Vehicles three years old or newer will pay a $225 tax.  Vehicle transfers between immediate family, certain business transactions and transfers to beneficiaries of an estate, will continue to have a $25 tax rate.

Commissioner Gorman said, “Passing this amendment was the right thing to do. Looking out for the taxpayer must be our priority, especially for those at the lower end of the earning scale.  This amendment will now make it more fair and equitable for person to person car buyers.”

Commissioner Elizabeth ‘Liz’ Doody Gorman, Republican from Orland Park, was first elected in 2002 to represent the 17th District on the Cook County Board. She has been a strong advocate for tax reform, budget and operational efficiencies, especially in the area of new technology. Liz has also worked hard for greater transparency throughout Cook County government and for making the Forest Preserve District a national leader in the areas of recreation, restoration and conservation.

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