Comments on: Chicago tries to collect taxes on car rentals in other cities. Huh? http://www.upgradetravelbetter.com/2009/03/04/chicago-tries-to-collect-taxes-on-car-rentals-in-other-cities-huh/ Living the first class life -- at coach prices Fri, 20 Nov 2009 13:55:54 -0700 hourly 1 By: avoidxtrataxes http://www.upgradetravelbetter.com/2009/03/04/chicago-tries-to-collect-taxes-on-car-rentals-in-other-cities-huh/#comment-27760 avoidxtrataxes Fri, 01 May 2009 14:00:28 +0000 http://www.upgradetravelbetter.com/?p=2530#comment-27760 I only spend money in the city of Chgo & Cook county if i have to. It is cheaper for me to drive 1.5 miles to Dupage County and pay 7.75% sales tax and i think 11% on a rental car. Chicago taxes everything why pay $1.20 more for a case of bottle water when the case of water is $ 2.99. So far I have not been asked to fill out the an affidavit for car rental, Enterprise states they will not require their customers to fill it out. Kane county taxes for car rental is 10-12% whereas Chgo is almost 18% because of an additional 5% Mccormick Place Expansion Tax(MPET) if you do not ask you will never know, that any car rental in Cook County pays the additional MPET,crazy. If you have a choice do not spend in Cook County or the city of Chicago. I only spend money in the city of Chgo & Cook county if i have to. It is cheaper for me to drive 1.5 miles to Dupage County and pay 7.75% sales tax and i think 11% on a rental car. Chicago taxes everything why pay $1.20 more for a case of bottle water when the case of water is $ 2.99. So far I have not been asked to fill out the an affidavit for car rental, Enterprise states they will not require their customers to fill it out. Kane county taxes for car rental is 10-12% whereas Chgo is almost 18% because of an additional 5% Mccormick Place Expansion Tax(MPET) if you do not ask you will never know, that any car rental in Cook County pays the additional MPET,crazy. If you have a choice do not spend in Cook County or the city of Chicago.

]]> By: Oliver http://www.upgradetravelbetter.com/2009/03/04/chicago-tries-to-collect-taxes-on-car-rentals-in-other-cities-huh/#comment-27015 Oliver Thu, 05 Mar 2009 00:38:59 +0000 http://www.upgradetravelbetter.com/?p=2530#comment-27015 I don't know about Illinois, but the car sales tax issue you describe is per California law: http://en.wikipedia.org/wiki/Sales_taxes_in_the_United_States "Vehicle purchases are taxed based on the city and county in which the purchaser registers the vehicle, and not on the county in which the vehicle is purchased. There is therefore no advantage in purchasing a car in a cheaper county to save on sales tax (a one-percent difference in sales tax rate would otherwise result in an additional $300 loss on a $30,000 car)." I ran into that a few cars ago when the dealer sent me a letter a few weeks after the deal closed because they had charged me the wrong (lower) sales tax. Of course, what Chicago is doing here for rental cars is just plain ridiculous. I don’t know about Illinois, but the car sales tax issue you describe is per California law:

http://en.wikipedia.org/wiki/Sales_taxes_in_the_United_States

“Vehicle purchases are taxed based on the city and county in which the purchaser registers the vehicle, and not on the county in which the vehicle is purchased. There is therefore no advantage in purchasing a car in a cheaper county to save on sales tax (a one-percent difference in sales tax rate would otherwise result in an additional $300 loss on a $30,000 car).”

I ran into that a few cars ago when the dealer sent me a letter a few weeks after the deal closed because they had charged me the wrong (lower) sales tax.

Of course, what Chicago is doing here for rental cars is just plain ridiculous.

]]>