Thanks to new tax law that took effect January 1st of 2015, new car buyers will see a reduction in the amount they pay (tax) when leasing a new vehicle. The law is House Bill 2317 and was signed in May of 2014 by Governor Pat Quinn.
Prior to this new law a customer leasing a vehicle would have paid tax on the entire purchase price. Now a consumer will only pay taxes on any down payment and also the base monthly lease payment. This is commonly referred to as monthly use tax. This means no tax is paid on the residual amount of the vehicle – which can sometimes be 50% of the value or more.
If you would like more information on this new lease tax law please contact Marion Toyota Finance Director David Mayer at 618-364-4825.
