Illinois Sales Tax Rate-Is this right?

[Ben E N]

Delaware has no sales tax, and does not allow cities or counties to levy any type of sales tax. Businesses are taxed on their gross receipts as an alternative to sales tax, but this tax cannot be passed on to consumers. A 3.75% "document fee" is collected on all automobile sales, and occupational license taxes of up to 1.92% are also collected on certain business activity.

While Delaware does not collect a sales tax, excise taxes are levied on the sale of certain products, including alcohol, cigarettes & tobacco, and gasoline. These excise taxes are passed on to the consumer in the goods' price

Isn't Delaware also where credit card companies are based out of, due to less strict regulations? All that extra revenue from people all across the country will certainly help offset taxes on the locals.

 

[Mackenzie Click-Mickelson]

To put the sales tax piece into perspective, the simple answer is some places have higher sales tax because they can get away with it.

That may be the case in some places but it's not a catchall description at all.

Do I want to pay higher sales tax? Nope but not every time is it something evil, something done just cuz. Then there's sales tax increase or property tax adjustments and in most cases I'll side with sales tax because what services are being provided for would be unfairly burdened by homeowners who would only reflect a fraction of the people utilizing it.

By making taxing structure up to each municipality, on top of what is mandated by the Federal, State, and County governments, places are in theory able to do what is best fo their citizens.

Yes this is what I was getting at but I wouldn't frame it as "It's a separation of power thing." which is what you originally said it was.

Guess this is one of those YMMV opinions.

 

[Ben E N]

That may be the case in some places but it's not a catchall description at all.

Do I want to pay higher sales tax? Nope but not every time is it something evil, something done just cuz. Then there's sales tax increase or property tax adjustments and in most cases I'll side with sales tax because what services are being provided for would be unfairly burdened by homeowners who would only reflect a fraction of the people utilizing it.

Yes this is what I was getting at but I wouldn't frame it as "It's a separation of power thing." which is what you originally said it was.

Guess this is one of those YMMV opinions.

The more things get split up, the more it benefits the little guy. A story to back that up. Cook County is huge and it's Chicago dominated. Recently, the county board, run mostly by people in Chicago, voted that call phone companies could attach towers to public spaces anywhere in the county - except in the city of Chicago. If Cook was split up into smaller counties, each area could speak for themselves. If it was run by the state, then the 80% of the people who live in the city and suburbs could speak for the 80% area of the state and those other people would have no say in their own matters.

 

[Mackenzie Click-Mickelson]

The more things get split up, the more it benefits the little guy. A story to back that up. Cook County is huge and it Chicago dominated. Recently, the county board, run mostly by people in Chicago, voted that call phone companies could attach towers to public spaces anywhere in the county - except in the city of Chicago. If Cook was split up into smaller counties, each area could speak for themselves. If it was run by the state, then the 80% of the people who live in the city and suburbs could speak for the 80% area of the state and those other people would have no say in their own matters.

I'm not debating what you're saying I'm just not agreeing with the generalization that it's separation of power; to me it's more complex than the generalization of separation of power. So again YMMV.

 

[Ben E N]

I'm not debating what you're saying I'm just not agreeing with the generalization that it's separation of power; to me it's more complex than the generalization of separation of power. So again YMMV.

Ok I would agree there. Especially once you build in family members in staggered positions, etc. The whole set up and idea is nice, it yes it is of course more complicated than any simple discussion would manage. I think the basic message of places charge high taxes because they can pretty much hold true though. Just like if my work offered me a 20% raise, sure I would take it.

 

[Tinks]

What part of Illinois? The real estate market is pretty hot by me.

Central Illinois. The market has tanked here for any home 300,000+. There are very few buyers so larger homes are sitting. A very prominent company relocated from here to Chicago (and everyone believes it will be out of Illinois in the next 10 years). Leaving our area was the first, and hardest, step. It is only renting space in Chicago now, so it is a matter of time.

 

[Cannot_Wait_4Disney]

What part of Illinois? The real estate market is pretty hot by me.

And therein lies another problem. Chicago is an increasingly unaffordable place to live as there are quite a few jobs where the pay hasn't kept up. Further, as the mid state and down state cities were smaller, they didn't have the corporate headquarters or the diverse financial economy of Chicago to absorb the blow of the loss of manufacturing. As a result Chicago may just be an unaffordable move. Selling an average house in Peoria might get you enough to afford to rent in Chicago. Otherwise, you'll be stuck half way to Kankakee. Or... Gary (shudder)

 

[RedAngie]

Delaware has no sales tax, and does not allow cities or counties to levy any type of sales tax. Businesses are taxed on their gross receipts as an alternative to sales tax, but this tax cannot be passed on to consumers. A 3.75% "document fee" is collected on all automobile sales, and occupational license taxes of up to 1.92% are also collected on certain business activity.

While Delaware does not collect a sales tax, excise taxes are levied on the sale of certain products, including alcohol, cigarettes & tobacco, and gasoline. These excise taxes are passed on to the consumer in the goods' price

Is the car document fee still 3.75%? It was when I bought my car in 2014. I took a quick glance at some website before I posted and thought I saw it had increased to 4.25%.

Isn't Delaware also where credit card companies are based out of, due to less strict regulations? All that extra revenue from people all across the country will certainly help offset taxes on the locals.

Yes, many companies are incorporated in Delaware due to relatively low corporate tax rates and laissez faire business policies. Those corporations provide a large chunk of the revenue needed to fund the state government.

 

[fab1976]

Aren’t taxes in Canada usually included in the price? That’s actually a higher rate.

No taxes are not included in the price here. We get the lovely 13% added at the register, or the 5%, depending on what you’re buying.

 

[MillauFr]

No taxes are not included in the price here. We get the lovely 13% added at the register, or the 5%, depending on what you’re buying.

That is why millions of Amazon packages ordered by British Columbia residents are shipped to Blaine and Lynden, Washington. Avoid the high Canadian sales taxes.

 

[fab1976]

That is why millions of Amazon packages ordered by British Columbia residents are shipped to Blaine and Lynden, Washington. Avoid the high Canadian sales taxes.

Well there are also a lot of duty charges and very high shipping costs to get things sent here from there. That’s the main reason to ship to a border “town”. If I can ship to Buffalo, NY and save $35 shipping from the Disney store, I will.

 

[mom2rtk]

Aren't those high Canadian taxes part of how the "free healthcare" is funded? Or does that come from other taxes?

 

[Kathryn Merteuil]

I used to live in Illinois. I am thinking where I was the sales tax was 6.25%. I think some towns added something to that. I never paid any attention to what the state income tax was.

 

[Ben E N]

I used to live in Illinois. I am thinking where I was the sales tax was 6.25%. I think some towns added something to that. I never paid any attention to what the state income tax was.

That's still the case in many counties across the state. Cook County is the exception, not the rule. The income tax recently (about a year ago) raised from 3.75% to 4.95%.

 

[Julie's Haircut]

For all the talk from shock radio jocks about Chicago, I think you'll find that several midstate cities are shrinking faster than Chicago, which doesn't make the national top 25 shrinking list.


16 Pittsfield, MA
17 Ocean City, NJ
18. Rocky Mount, NC
.

Ocean City, NJ has lost about 25% of its year round population since 2000. Probably due to people like me who bought second homes to rent to vacationers. Developers waved checks for half a million or more in long time homeowners faces, then knocked down their modest homes to build hundreds of duplexes and condos.

I'll probably move there when I retire in a few years.

 

[manning]

Many of the 3rd party retailers on Amazon didn't charge Washington State sales tax until recently. Now I am using smaller online retailers. Many still don't charge sales tax. I usually wait to make big purchases like flat panel TVs and laptops when I visit my daughter at college in Oregon. No sales tax there. The Tigard Costco is a quick detour off of I-5.

Supreme court took care of that today.

 

[manning]

That's still the case in many counties across the state. Cook County is the exception, not the rule. The income tax recently (about a year ago) raised from 3.75% to 4.95%.

A 32 % increase.

 

[MillauFr]

Supreme court took care of that today.

it will not apply to eBay purchases

 

[Forevermarypoppins]

I live on the WI/IL border in WISCONSIN. our sales tax is 5.5%There are plenty of cars with IL plates wherever you go: grocery store, retail, restaurants, entertainment venues, etc. Housing is more affordable here too. And now WI has an IKEA 20 miles so no need or desire to ever drive to Schaumburg again YEAH I'll still cross into the IL abiss to go shopping sometimes and I'll always love going to Chicago but it's an EXPENSE just to visit for a day.