Hi {FIRST NAME}

I’m Shane Morris, General Manager of Coad Toyota in Cape Girardeau, MO. The State of Illinois has enacted a tax law – effective Jan. 1, 2020 – that puts a cap on vehicle trade allowances. Currently, the state doesn’t collect any sales tax on your vehicle’s trade-in value, which acts as a tax credit toward the new vehicle purchase. Simply put, if you get a $30,000 trade-in allowance on a $47,000 vehicle, you only pay taxes on the $17,000 difference. Starting Jan. 1, 2020, the state imposed a cap of $10,000 on trade allowances, which means that you would pay taxes on $37,000.