A bill being considered in the Illinois House could lower the tax on leasing a car.  Unlike most states, if you lease a car in Illinois, you have to pay tax on the full purchase price.  Under the proposal sponsored by state Rep. Mike Zalewski (D-Riverside), customers would instead pay tax only on their monthly payment.  Auto dealers believe that will make leasing more attractive to car shoppers, and provide more tax revenue to the state.
 
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“The average vehicle that’s on the road out there is 11 years (old),” said Joe McMahon, director of government affairs for the Illinois Automobile Dealers Association.  “So the state gets a one-time sales tax in that 11-year span.  If leasing was just a little more attractive, and the tax was based on usage versus purchase price, you could have that same customer coming in three different times in that 10-year period.”  The Illinois Department of Revenue supports the change, saying the state won’t lose out on any tax revenue.  
 
 
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