Was sales tax charged on your clunker rebate?

[sschmid]

I just registered my new prius in NY. I was charged sales tax on the full price of the car 22950 plus an added 4500 rebate on for the full price making it taxed at 27450 for a total tax of 2243.00. To me this seems like I was taked twice on the rebate. Unfortunatly I had to register the car myself at DMV since I bought it in Connecticut. The people at dmv was very confused how to do the take and I think they goofed. Can someone who bought in NY and was registered through the dealer tell me what the sales tax was or what price they were taxed on. I could see charging the tax on the full price of the car before the rebate but not the full price AND the rebate.

[SilverPriusIII]

Originally Posted by sschmid

I just registered my new prius in NY. I was charged sales tax on the full price of the car 22950 plus an added 4500 rebate on for the full price making it taxed at 27450 for a total tax of 2243.00. To me this seems like I was taked twice on the rebate. Unfortunatly I had to register the car myself at DMV since I bought it in Connecticut. The people at dmv was very confused how to do the take and I think they goofed. Can someone who bought in NY and was registered through the dealer tell me what the sales tax was or what price they were taxed on. I could see charging the tax on the full price of the car before the rebate but not the full price AND the rebate.

Don't know about NY. In Calif., my tax was calculated after deducting $4500 from the purchase price. My cousin brought a few days before me was taxed at the full purchase price and the dealer called them back to redo the paperwork on the same day that I visit that dealership. Also don't forget that sale tax can be deduct this year according to IRS.
Deduction for Sales and Excise Taxes Imposed on Purchase of New Motor Vehicles

[yuving]

Originally Posted by SilverPriusIII

Don't know about NY. In Calif., my tax was calculated after deducting $4500 from the purchase price. My cousin brought a few days before me was taxed at the full purchase price and the dealer called them back to redo the paperwork on the same day that I visit that dealership. Also don't forget that sale tax can be deduct this year according to IRS.

OMG that's so good to know!! Thank you for this info, I would never know!!

I bought my car in CA and my tax was also calculated after $4500 applied to the purchased price. Check with your dealer again and ask them if they made a mistake?

[SCJoe]

The tax laws vary from state to state.

A little Googling shows that NY seems to charge tax on the $4500 amount.

However, that means that they just charge tax on the entire purchase amount of the car. If, as it appears, your car cost $22950, and you got $4500 from the C4C program (so you actually paid $18450 for the car), you should have paid sales tax on $22950, not $27450.

[jay_man2]

Don't forget that for cars purchased after Feb. 16, 2009, you can deduct the sales tax on your 2009 Federal return.

Sales Tax Deduction for Vehicle Purchases

[emnesto]

No sales tax on clunker $4500 in Arkansas. The clunker shows as a trade, and sales tax is calculated on difference. The word "clunker" does not appear anywhere on the dealer invoice.

[sschmid]

Called NYS tax dept today I was indeed charged to much tax. What morons at DMV. I would not mind if they at least LISTENED to me explain their tax stratagy!!! I NOW have to file a form with the tax deptartment and wait until it runs through the system and I get a refund. I wonder how many more unsuspecting soles will over pay the tax on their cars! What a PIA. If I fail to get it back this year I will have to fill federal Income tax for the full amout and amend for the credit. All because NYSDMV was to stupid to understand!

[urlyadoptr]

Originally Posted by jay_man2

Don't forget that for cars purchased after Feb. 16, 2009, you can deduct the sales tax on your 2009 Federal return.

Sales Tax Deduction for Vehicle Purchases

I hadn't heard about this little gem! That's awesome! On top of my clunker deal, I almost feel guilty for taking advantage of the Federal Government like this! Oh wait, never mind... it passed!

Think I picked a good time to purchase the finest vehicle I've ever owned!

[StonePony9/1]

I would be surprised if any State allowed the rebate to be credited before taxes are paid. They would be losing a lot of tax $ because of a Federal program. Besides CFC is a rebate program. If you buy a computer or camera or printer ink etc. with a rebate does the rebate get taken off before taxes or after?

[kilork]

Originally Posted by StonePony9/1

I would be surprised if any State allowed the rebate to be credited before taxes are paid. They would be losing a lot of tax $ because of a Federal program. Besides CFC is a rebate program. If you buy a computer or camera or printer ink etc. with a rebate does the rebate get taken off before taxes or after?

Actually, quite a few states are doing it. Even on simple trade-ins. But each state is different and it makes matters more complicated if buying a car in a different state from where you register it. I just went through a small ordeal while buying a car in MD, registering in PA, and using my clunker with VA title. Basically I spent over 45 minutes trying to explain to the finance idiot that his computer was calculating the tax wrong. Finally he called his manager who quickly noticed the mistake and fixed the error. I also wondered how many people were screwed on tax but this guy.