Statement of Michael Ettleson, Chairman, Chicago Auto Trade Association Re: Cook County Tax Increase on Automobile Purchases

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Chicago Automobile Trade Association

Oct 25, 2011, 03:15 ET

CHICAGO, Oct. 25, 2011 /PRNewswire-USNewswire/ -- While we understand that Cook County Board President Preckwinkel is seeking the means of closing a massive budgetary gap, and we applaud her for keeping her pledge to roll back the county sales tax, the Chicago Automobile Trade Association (CATA) strongly opposes any tax increase that would add to the cost of purchasing a car.

It's already more expensive for consumers to purchase cars in Cook County than in the surrounding counties. An additional quarter percent tax -- bringing the total to 8.25 percent -- will be detrimental not only to the consumers who purchase vehicles, but also to the dealers who operate in the county. Incredibly, taxing entities in Illinois together make more money on the sale of a car than car dealers do!

Cook County has lost 50 new car dealers since 2007. That's a loss of 2,500 jobs and millions in tax revenues. Each closure was a significant loss to the community in which they did business. Cook County cannot afford to lose even one more new car dealer, yet officials continue to make it difficult for them to do business. Cook County dealers pay property taxes 66 percent higher than dealers in neighboring counties.

Making it more expensive to purchase a new or used vehicle is the wrong way to go as the auto industry struggles to recover from the recession. There are other ways for President Preckwinkel to find revenues that help solve the county's deficit problem and make it more equitable.

SOURCE Chicago Automobile Trade Association