Pub 5. 2015 Issue 3

21 ployees in the State-run program unless the employees elect to opt out. The employer will be required to deduct 3% of each participating employee’s wages (or such other amount that the employee directs) for deposit into the State-run program. • Employment Discrimination—Pregnancy. As of January 1st, it is a violation of the Illinois Human Rights Act to discriminate against a person on the basis of pregnancy. This means that employers with at least 15 employees may not refuse to hire or make employment- related decisions on the basis of an employee’s or prospec- tive employee’s pregnancy or medical condition related to pregnancy. Furthermore, employers must make reason- able accommodations for pregnant employees (similar to the reasonable accommodations required for disabled employees) unless the employer can show that the accom- modations would create an undue hardship for the em- ployer. For pregnancy and related conditions, reasonable accommodations include more frequent restroom and water breaks, rest breaks, private, non-bathroom space for expressing breast milk, assistance with manual labor, temporary transfer to a less strenuous or less hazardous position, a modified work schedule, time off to recover from child birth, and leave necessitated by pregnancy, childbirth, or medical conditions resulting from preg- nancy and childbirth. • Green Fleets Program Suspended As a budget-cutting move, the Illinois Environmental Protection Agency has suspended the Alternate Fuel Re- bate Program (10% of MSRP, up to $4,000) for customers who purchase alternate fuel vehicles. Vehicles that had qualified for the Alternate Fuel Rebate Program prior to its suspension include: Nissan Leaf, Mitsubishi i Miev, Ford Focus EV, Smart “fortwo” EV, Chevrolet Volt, Ca- dillac ELR, and BMW i3. Federal tax credits for electric vehicles are unaffected. However, if you sell a vehicle that had qualified for the Alternate Fuel Rebate Program, please make sure that you do not tell your customer that the vehicle will qualify for the $4,000 Illinois rebate. • Sales to Charitable Organizations in Retaliatory States Taxable. Although most sales to out of state customers are tax exempt, if you sell a vehicle to a resident of Arizona, California, Florida, Hawaii, Indiana, Massachusetts, Michigan, or South Carolina, you are required to collect Illinois Sales Tax unless (1) the purchaser has a valid Il- linois exemption number at the time of the purchase or (2) you deliver the vehicle to an out of state location not to be returned to Illinois or arrange for the vehicle to be shipped to an out of state location not to be returned to Illinois. o The fact that a purchase is tax-exempt in the pur- chaser's state of residence, because the purchaser is a unit of government, a charity, or a religious entity, for example, does not make it exempt in Illinois. If you sell a vehicle to a resident of one of the 8 retal- iatory states and deliver the vehicle in Illinois, you must collect Illinois sales tax unless the purchaser has a valid Illinois exemption number at the time of the purchase. o Items that are delivered or shipped out of Illinois not to be returned to Illinois are exempt by virtue of being in the stream of interstate commerce. How- ever, to qualify for the interstate sales exemption, you must comply with the Department of Revenue's recordkeeping requirements. The most important requirement, if you ship a vehicle out of Illinois, is that your dealership be recorded as the shipper to an out of state location on the bill of lading or other shipping documents. • Advertising A copy of the Illinois Attorney General’s Motor Vehicle Dealer Advertising Rules is available at www.illinois- dealers.com . Some of the more common violations are discussed below. o Lifetime Warranties – The free gift rule prohibits advertising free warranties (other than the manufac- turer’s warranty). The Attorney General has taken the position that dealership offers of a free lifetime warranty or free extended warranty could create confusion for the customer, who may not be able to differentiate the dealership warranty from the factory warranty. While not as obvious a violation as offer- ing a free T.V. or entry into a prize drawing to vehicle purchasers, the Attorney General’s Office will treat free warranties in the same manner. If you want to offer an extended warranty, you must either disclose the price or remain silent as to the price (for example, Home of the Lifetime Warranty or Extended War- ranty Available). o Rebates – When advertising motor vehicle rebates, you may not deduct a rebate from the advertised vehicle price unless the rebate is available to all cus- tomers. If the rebate is available to a limited group of customers (First-time buyer, owner loyalty, etc.) then the rebate must be separately stated as an additional discount from the advertised price. o Clear and Conspicuous Disclosure – The “clear and conspicuous” disclosure requirement, like all of the other advertising rules, applies to websites. If a customer must hover over a portion of a website or click on a link to see the required disclosure of a material term or condition, the term or condition has not been properly disclosed. n Motor Vehicle — continued on page 22