Unexpected Prius Tax Break

nmrickie · 01-12-2005, 08:45 PM

I bought my Prius out of state, and when I went to register it I found out that I didn't have to pay the 3% sales tax because I bought a hybrid!

It was kind of funny. I live in a small town, and when I went to register it the clerks had never had to register a hybrid before. One of them casually mentioned that she thought she saw a flyer back in July that mentioned a different tax rate for hybrids, but no one could remember what the flyer said. She called the main office in Santa Fe and found out that there's no tax -- only the regular costs of registration and plates (around $100 for two years).

I had been a little disapointed that New Mexico didn't have a tax deduction, but the 3% sales tax waiver is even better!

DanMan32 · 01-13-2005, 10:19 AM

3% sales tax? Wow! We pay 6% state sales tax, plus a 'discresionary' tax from .5 to 1% for some counties, like mine and the ones I frequent.

No income tax though, but this year I can now deduct the sales tax from federal income tax. A tax exemtion, which is like a credit, would be better though.

jaguaraja · 01-13-2005, 11:18 AM

you all can bite me!

we have income tax and 8.75% sales tax

screw you NY :cussing:

kjb516 · 01-13-2005, 12:01 PM

Sales tax? What's that?

You gotta love Oregon!

Signed,
A recovering New Yawka.

Charles Suitt · 01-13-2005, 12:43 PM

[font=Tahoma:6535be3aec] [/font:6535be3aec]Seems I read somewhere that the IRS will allow a deduction if you live in a state WITH sales tax, and allow an itemized deduction for the sales tax imposed on an automobile purchase....

Hmmmm.... could it be that the IRS has a "kind" streak?

DanMan32 · 01-13-2005, 01:18 PM

Quote:

you all can bite me!

we have income tax and 8.75% sales tax

screw you NY :cussing:

I know what you mean, I grew up there and moved to Florida with that being one of the main reasons.

Quote:

[font=Tahoma:50f5816d0d] [/font:50f5816d0d]Seems I read somewhere that the IRS will allow a deduction if you live in a state WITH sales tax, and allow an itemized deduction for the sales tax imposed on an automobile purchase....

Hmmmm.... could it be that the IRS has a "kind" streak?

You can deduct sales tax or income tax, not both.

**tag** · 01-13-2005, 01:22 PM

Quote:

You can deduct sales tax or income tax, not both.

Yep! So much for the "kind" streak. :wink:

bruceha_2000 · 01-13-2005, 01:25 PM

I hope TurboTax knows about this so it can figure out which is best for me. I'm guessing the income tax will win out big time. But I get my $2K Prius deduction either way, right?

**tag** · 01-13-2005, 01:30 PM

You get your $2k deduction either way.

Re sales tax, TT 2004 allows you to enter "big ticket items" manually.

Charles Suitt · 01-13-2005, 01:33 PM

TEXAS has no INCOME TAX....
... so I deduct the "sales taxes."

01-12-2005, 08:45 PM	#1
nmrickie Senior Member Join Date: Dec 2004 Location: New Mexico Posts: 162 My Car: 2008 Prius Package: #6 Nominated 0 Times in 0 Posts TOTM Awards: 0 Friends: 0	Unexpected Prius Tax Break I bought my Prius out of state, and when I went to register it I found out that I didn't have to pay the 3% sales tax because I bought a hybrid! It was kind of funny. I live in a small town, and when I went to register it the clerks had never had to register a hybrid before. One of them casually mentioned that she thought she saw a flyer back in July that mentioned a different tax rate for hybrids, but no one could remember what the flyer said. She called the main office in Santa Fe and found out that there's no tax -- only the regular costs of registration and plates (around $100 for two years). I had been a little disapointed that New Mexico didn't have a tax deduction, but the 3% sales tax waiver is even better!

01-13-2005, 11:18 AM	#3
jaguaraja Join Date: Nov 2004 Location: Long Island, NY Posts: 147 My Car: Package: Nominated 0 Times in 0 Posts TOTM Awards: 0 Friends: 1	Re: Unexpected Prius Tax Break you all can bite me! we have income tax and 8.75% sales tax screw you NY :cussing:

01-13-2005, 12:01 PM	#4
kjb516 Join Date: Jan 2004 Location: Troutdale, OR Posts: 104 My Car: Package: Nominated 0 Times in 0 Posts TOTM Awards: 0 Friends: 0	Re: Unexpected Prius Tax Break Sales tax? What's that? You gotta love Oregon! Signed, A recovering New Yawka.

01-13-2005, 12:43 PM	#5
Charles Suitt Senior Member Join Date: Oct 2004 Location: Dallas TX Posts: 1,622 My Car: Package: Nominated 0 Times in 0 Posts TOTM Awards: 0 Friends: 0	Re: Unexpected Prius Tax Break [font=Tahoma:6535be3aec] [/font:6535be3aec]Seems I read somewhere that the IRS will allow a deduction if you live in a state WITH sales tax, and allow an itemized deduction for the sales tax imposed on an automobile purchase.... Hmmmm.... could it be that the IRS has a "kind" streak?

01-13-2005, 01:30 PM	#9
tag Super Moderator Join Date: Nov 2003 Location: Chicago Posts: 2,527 My Car: Package: Nominated 0 Times in 0 Posts TOTM Awards: 0 Friends: 0	Re: Unexpected Prius Tax Break You get your $2k deduction either way. Re sales tax, TT 2004 allows you to enter "big ticket items" manually.

01-13-2005, 10:19 AM	#2
DanMan32 Join Date: Aug 2004 Location: Tampa Bay, FL Posts: 3,775 My Car: Package: Nominated 0 Times in 0 Posts TOTM Awards: 0 Friends: 0	3% sales tax? Wow! We pay 6% state sales tax, plus a 'discresionary' tax from .5 to 1% for some counties, like mine and the ones I frequent. No income tax though, but this year I can now deduct the sales tax from federal income tax. A tax exemtion, which is like a credit, would be better though.

01-13-2005, 01:25 PM	#8
bruceha_2000 Senior Member Join Date: Jan 2004 Location: South Burlington, VT Posts: 2,207 My Car: 2004 Prius Package: #8 Nominated 0 Times in 0 Posts TOTM Awards: 0 Friends: 0	I hope TurboTax knows about this so it can figure out which is best for me. I'm guessing the income tax will win out big time. But I get my $2K Prius deduction either way, right?

01-13-2005, 01:33 PM	#10
Charles Suitt Senior Member Join Date: Oct 2004 Location: Dallas TX Posts: 1,622 My Car: Package: Nominated 0 Times in 0 Posts TOTM Awards: 0 Friends: 0	Re: Unexpected Prius Tax Break TEXAS has no INCOME TAX.... ... so I deduct the "sales taxes."

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