NAPERVILLE, Ill. (WBBM NEWSRADIO) -- Municipalities and the state are collecting more money from car sales, despite fewer cars being sold, because of ongoing supply issues.
As dealers have fewer cars on their lots and people are keeping cars longer than ever, 12-years on average, according to Dave Sloan, President of the Chicago Automobile Trade Association, it’s textbook supply and demand.
Supply is down and prices are up, and more taxes are being collected, despite fewer sales.
Municipalities share the tax with the state.
In Naperville, for example, a car buyer pays 7 percent, with 5.25 percent going to the state, one percent goes to the city, and the RTA gets the rest.
The city collected $10.3 million in auto sales taxes by October of last year. The figures for the last three months of 2021 are not in yet.
The Naperville Sun reported that compares to $9.6 million for all of 2019; and $8.9 million in 2020, when dealerships were shut down for some time.
Sloan expects supply issues to ease in the spring.
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