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Unexpected Prius Tax Break

Discussion in 'Gen 2 Prius Main Forum' started by nmrickie, Jan 12, 2005.

  1. nmrickie

    nmrickie Member

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    Location:
    New Mexico
    Vehicle:
    2010 Prius
    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!
     
    #1 nmrickie, Jan 12, 2005
  2. DanMan32

    DanMan32 Senior Member

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    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.
     
    #2 DanMan32, Jan 13, 2005
  3. jaguaraja

    jaguaraja New Member

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    you all can bite me!

    we have income tax and 8.75% sales tax

    screw you NY :cussing:
     
    #3 jaguaraja, Jan 13, 2005
  4. kjb516

    kjb516 New Member

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    Sales tax? What's that? :lol:

    You gotta love Oregon!

    Signed,
    A recovering New Yawka.
     
    #4 kjb516, Jan 13, 2005
  5. Charles Suitt

    Charles Suitt Senior Member

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    Vehicle:
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    Four
    :) [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?
     
    #5 Charles Suitt, Jan 13, 2005
  6. DanMan32

    DanMan32 Senior Member

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

    You can deduct sales tax or income tax, not both.
     
    #6 DanMan32, Jan 13, 2005
  7. tag

    tag Senior Member

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    Yep! So much for the "kind" streak. :wink:
     
    #7 tag, Jan 13, 2005
  8. bruceha_2000

    bruceha_2000 Senior Member

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    Location:
    Northwest VT
    Vehicle:
    2018 Prius Prime
    Model:
    Prime Advanced
    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?
     
    #8 bruceha_2000, Jan 13, 2005
  9. tag

    tag Senior Member

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    You get your $2k deduction either way.

    Re sales tax, TT 2004 allows you to enter "big ticket items" manually.
     
    #9 tag, Jan 13, 2005
  10. Charles Suitt

    Charles Suitt Senior Member

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    :D TEXAS has no INCOME TAX....
    ... so I deduct the "sales taxes."
     
    #10 Charles Suitt, Jan 13, 2005
  11. DanMan32

    DanMan32 Senior Member

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    If it doesn't out of the box, the update should work.
    Sales tax might win.
     
    #11 DanMan32, Jan 13, 2005
  12. tag

    tag Senior Member

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    Here's a link to the sales tax tables provided by the IRS (pdf file):

    http://www.irs.gov/pub/irs-pdf/p600.pdf

    Should be a relatively simple matter to determine after adding any big ticket items and comparing the resulting figure to income tax paid.
     
    #12 tag, Jan 13, 2005
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