Commercial Distribution Fee Repealed in Illinois

Illinois’ General Assembly recently voted to repeal the Commercial Distribution Fee (CDF), a “14.35% sales tax imposed on all license plates in Illinois from 8,001-lbs to 80,000-lbs.” As a result, owners of large vehicles can expect a decrease in license plate fees starting July 1, 2020. The CDF has cost the trucking industry almost $1 billion since 2004, according to the Illinois Trucking Association.

For example, an 80,000-pound license plate costs $3,190 today, $400 of which is due to the CDF. This tax will be replaced with a $100 flat fee that will cause a net decrease in costs. Revenue from the Commercial Distribution Fee transfers to the General Revenue Fund. Now, revenue from the $100 fee will go to the Secretary of State and into the road fund.

The Illinois Trucking Association was founded in 1930. It has affiliates in the other 49 states as well as the American Trucking Associations at the national level. ILoca Services, Inc. has been a member since 2010.

ILoca Services is a full-service semi trailer dealership with locations in Illinois, Iowa, and Wisconsin. Looking for a trailer? Rent or buy! Looking for parts? Stop by our Parts Superstore in Aurora, IL, parts shops in IA and WI, or shop online!

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