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According to Illinois statute, consumers should pay a 1% tax on
medically-required equipment and the customary 6.25% or more on
the rest of the vehicle.
DeWitte told members of the Illinois Senate Revenue Committee
Thursday that the law is applied when people add the equipment
after they receive their vehicle, but they get charged 6.25% or
more on the equipment when it comes with the car from the
factory.
“Senate Bill 253 will remove that ambiguity and make clear that,
regardless of when a person with a disability modifies and
purchases their vehicle, the lower sales tax rate will still
apply for the medically-required equipment,” DeWitte said.
Bill Bogdan, disability liaison for the Illinois Secretary of
State, told the committee that the higher tax rate costs
disabled consumers hundreds or even thousands of dollars.
“I think this will obviously make it easier for people with
disabilities in Illinois who purchase the adaptive vehicles
since the adaptive equipment is very expensive,” Bogdan said.
Bogdan said people in other parts of the Midwest pay less for
adaptive equipment, including hand controls needed for driving
and wheelchair ramps or lifts.
“Many states, including Indiana, Minnesota, Wisconsin and
Missouri, don’t even charge sales tax on adaptive equipment.
It’s completely exempt,” Bodgan said.
Bogdan urged lawmakers to support Senate Bill 253.
If the bill becomes law, the amendment to the tax code would
take effect on July 1. |
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