Whats the deal in Illinois with sales taxes on leases?
A. An Illinois reader did some research and here is what he said, “I called the Illinois Department of Revenue and I was informed that when one purchases a leased vehicle at lease-end, one has to pay tax again on the residual value [or the negotiated lease-end purchase price]. Talk about unfair! So, In Illinois, one has to pay full sales tax at the beginning of the lease, and if you want to buy the car at the end of the lease, you have to pay it again. This is a tax situation begging for some reform”. —— Here’s a response from the State of Illinois: “The State of Illinois taxes leased vehicles differently than the majority of other states. In Illinois, tax is due up front on the full selling price of the vehicle. This applies to vehicles that are leased for a period of more than one year. As the owner of the vehicle the lessor is liable for tax. However, the lessor generally passes this tax liability on to the lessee of the vehicle. If at the end of the lease term, the lessee chooses t
