New York State Income Tax Credit and Sales Tax Exemption

[mielikki_eo]

Has anyone in NYS got the $3000 Sales Tax Exemption on the Prius? Did the dealer take care of it all? If not, has anyone filed after the fact for a reimbursment?

Has anyone in NYS taken the $2000 Income Tax Credit on the Prius? It looks pretty straight forward in 2003: "The credit for qualified hybrid vehicles is equal to $2,000 per vehicle registered in this state...." (from IT-253 Instructions)

Tips, suggestions, experiences welcome. Hopefully this topic can serve as a reference summary of what's up with this stuff.

If you post links, a brief description of what's at the link would be nice!

Here are some references:

Instructions for Form IT-253 - Alternative Fuels Credit
http://www.tax.state.ny.us/pdf/2003/inc/it...it253i_2003.pdf
Instructions for taking the $2000 Income Tax Credit.

Amendments Relating to the Alternative Fuels Credits and Exemption
TSB-M-02 October 21, 2002
http://www.tax.state.ny.us/PDF/memos/multi...2_6c_8s_10i.pdf
Extends the income tax credit and sales tax exemption to 2003. Adds the definition of a qualified hybrid electric vehicle. Describes the Sales Tax Exemption.

Toyota-Prius Yahoo group links
http://autos.groups.yahoo.com/group/toyota...k_001003761354/
A list of other links of interest for NY.

[mielikki_eo]

Here is an interesting example from http://www.tax.state.ny.us/PDF/memos/multi...2_6c_8s_10i.pdf . The really interesting part is the statement that says "Additionally, since the qualified hybrid vehicle is a 2003 model year, the incremental cost is required to be separately stated on the written contract or bill given to the purchaser."

Example 2: An individual residing in an 8% taxing jurisdiction signs a contract to purchase a new 2003 qualified hybrid vehicle for $22,400. No comparable gasoline-powered vehicle, similar in all other respects, but for the equipment necessary to render it an alternative fuel vehicle, exists.

2003 Alternative Fuel Vehicle                           $22,400

      Incremental cost                                  - 3,000

Amount subject to sales tax                             $19,400

      Sales tax rate                                      X .08

Tax due                                                 $ 1,552

For this transaction, because no comparable gasoline-powered vehicle exists, the incremental cost used to determine the sales and use tax exemption is $3,000. Additionally, since the qualified hybrid vehicle is a 2003 model year, the incremental cost is required to be separately stated on the written contract or bill given to the purchaser.

I bought my car out of state and didn't know about this before hand. I guess I will have to see if my out-of-state dealer will give me a revised bill of sale with that information on it....

[mielikki_eo]

Post 23706 in the yahoo group pointed out the following link. It's basically a copy of the TSB-M-02 memo, but it has some important passages highlighted:

http://home.nycap.rr.com/hondataxinsight/N...0Tax%20Law.html

One point it did neglect to highlight was the one that says the incremental cost has to be shown on the contract or bill. (Personal opinion: since the incremental cost is fixed at $3000, it seems kind of pointless to require it on the bill.)

[PriusDreamer]

You can file for a claim for a refund of sales tax by filing Form AU-11. You must have the $3,000 seperately stated on the contract.

[mielikki_eo]

You can file for a claim for a refund of sales tax by filing Form AU-11. You must have the $3,000 seperately stated on the contract.

Yeah, that's pretty much what the directions say.

To anyone who has paid the reduced sales tax: what did the line items on your contract or bill of sale look like? Was in something like this:

MSRP  $23,489(*)

(*) includes incremental hybrid cost of $3,000

I'm asking because those of us who purchased out-of-state need to know what to have the dealer write into the bill of sale.

[Danny]

Thank god for a $300 cap in SC on car sales tax (actually, I think they're changing that, but when I bought my car it was capped).

[mielikki_eo]

Thank god for a $300 cap in SC on car sales tax (actually, I think they're changing that, but when I bought my car it was capped).

LOL! With the $3000 exemption at 8.25% sales tax, $300 is close to what I'm hoping to get back! We won't talk about the other $20K@8.25%.

[sterna_paradisaea]

I purchased mine in Albany, NY and yes, the dealer took care of the sales tax, but no, I haven't filed NYS income taxes yet so haven't filed for the credit (though I agree it does look pretty simple).

Since I purchased "in state", the $3,000 was not listed separately. Also, as it is the dealer's responsibility to collect the appropriate amount I didn't worry about not having the separate calculation on the PO.

-john

[sjr14221]

Okay, now I am really bummed.

I just read one of the links posted above that says that the NYS tax credit ends in 2003. Like many, I ordered months ago and no idea when the vehicle will arrive.

I had downloaded other documents from the State Assembly (specifically bill S04523) that extended the tax credits (slated to end in 2003) through 2006. Where do I go to determine if this bill has been (enacted?) into law?

I am desperate to not only own a Prius '04 hybrid but to get some sort of incentive for buying it (since I can't rationalize buying the car to save money on gas, I want to at least say that I need to buy it now to take advantage of government incentives).

I hope someone out there can point me in the right direction!

Sharon

[Danny]

Sharon -

Out of the articles that I have read, it may actually work in your favor because, at least nationally, there are some energy bills out there that provide tax credits instead of just deductions and are for even more money than the deductions originally for.

This is total speculation, but I believe that as we see more hybrids sitting next to their traditional ICE counterparts, we'll see more tax incentives for people to move away from the ICE version of the car and onto the hybrid version (ie, when the Highlander comes out in 04).

A tax credit is much more beneficial than a tax deduction.

That answers nothing about your questions about NY State, but hey, it's more information for you to ponder over