The Cook County Board unanimously passed a proposed amendment Wednesday to cut the county's Non-Retailer Transfer of Motor Vehicles Tax. Sponsored by Commissioner Elizabeth "Liz" Doody Gorman, the amendment will lower the cost of purchasing a car, person to person.
The new rates, which take effect Aug. 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.
"This amendment will provide a lower and more equitable tax rate on the transfer of motor vehicles between County residents," Cook County Board President Preckwinkle said. "After listening to constituents throughout the County, we responded with a compromise solution that reduces the burden on taxpayers."
The amendment also creates a new tax rate for the transfer of motorcycles. Beginning Aug. 1, it will cost $90 for each transfer. The $25 rate for family, businesses and estates will also apply to motorcycle transfers.
The County projects the ordinance change will be revenue neutral due to greater enforcement. It is expected to raise $7.8 million in fiscal year 2013.