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New York State Income Tax Credit and Sales Tax Exemption

Discussion in 'Gen 2 Prius Main Forum' started by mielikki_eo, Dec 15, 2003.

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  1. mielikki_eo

    mielikki_eo New Member

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    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.
     
    #1 mielikki_eo, Dec 15, 2003
  2. mielikki_eo

    mielikki_eo New Member

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    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."

    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....
     
    #2 mielikki_eo, Dec 15, 2003
  3. mielikki_eo

    mielikki_eo New Member

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    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.)
     
    #3 mielikki_eo, Dec 15, 2003
  4. PriusDreamer

    PriusDreamer Member

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    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.
     
    #4 PriusDreamer, Dec 16, 2003
  5. mielikki_eo

    mielikki_eo New Member

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    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:
    Code:
    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.
     
    #5 mielikki_eo, Dec 16, 2003
  6. Danny

    Danny Admin/Founder
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    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).
     
    #6 Danny, Dec 16, 2003
  7. mielikki_eo

    mielikki_eo New Member

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    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 [email protected]%.
     
    #7 mielikki_eo, Dec 16, 2003
  8. sterna_paradisaea

    sterna_paradisaea New Member

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    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
     
    #8 sterna_paradisaea, Dec 17, 2003
  9. sjr14221

    sjr14221 Member

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    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
     
    #9 sjr14221, Dec 23, 2003
  10. Danny

    Danny Admin/Founder
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    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 :)
     
    #10 Danny, Dec 23, 2003
  11. sjr14221

    sjr14221 Member

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    Hi Danny

    First. I am giving Priuschat a try (kind of sick of the arguing over at 2004-prius). I am a little confused at the setup here, but I will get used to it.

    Second. I am hoping that everything works out so that I get a NYS tax credit AND a Federal credit (if they ever pass a bill that includes it). I am worried about the current text that says maximum 80,000 vehicles from each manufacturer (Toyota will hit that number pretty soon, I imagine). I would think, however, that as the hybrid becomes more mainstream, the tax incentives will disappear, as people will buy the cars anyway due to more exposure/Confidence in the technology.

    Third. Still wondering if I am a complete nutcase for wanting a car this badly, when I already have a perfectly good vehicle :lol: .

    Sharon R
     
    #11 sjr14221, Dec 23, 2003
  12. Danny

    Danny Admin/Founder
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    Sharon -

    I would say that hybrids won't be "mainstream" for about 2 more years, so that's why I am thinking that we'll see more incentives.

    I'm glad you decided to check out Priuschat - it's a different format to get used to, but once you do I hope that you will decide to stay here and become a part of the community. It does seem like the 2004 YG is becoming a bit of a bitch-fest.

    You're not a nutcase - there are a couple of people on PC that moved from great cars like Lexus & Mercedes to get a Prius.
     
    #12 Danny, Dec 23, 2003
  13. sterna_paradisaea

    sterna_paradisaea New Member

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    It wasn't, and given both the ten(?) billion dollar budget shortfall for next year as well as our "three men in a room" legislative process, I am not optimistic.

    That said, this link will get you to the legislature web site: http://public.leginfo.state.ny.us/menuf.cgi.
     
    #13 sterna_paradisaea, Dec 23, 2003
  14. sjr14221

    sjr14221 Member

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    Okay, (Sterna?) I went to the legislature site, and cannot find any indication of the status of the bills.

    Excuse my ignorance, but where does it actually say what the status is? I searched under the bill number, under vetoes, under approval messages...I am not a lawyer and cannot decipher basic english facts from the language of the bills (my shortcoming, but nevertheless, annoying)

    I also wrote directly to NYSERDA and to a state rep listed in another of the links given here, but have heard no reply.

    So you are saying no tax breaks at all in NYS after Dec 31? I am crushed.

    Sharon R
     
    #14 sjr14221, Dec 24, 2003
  15. PriusDreamer

    PriusDreamer Member

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    Sharon R

    No guarantees, but don't despair to much. Firstly, you have until Feb 26 to get the sales tax exemption. More importantly, there is a good chance that they will extend the credit as they did for 2003 (although not until Oct. of 2003). I am in the same boat as you. I even put a bounty for my dealer if he got the car prior to 2004 (to no avail I might add) . Keep your fingers crossed. When and if the credit gets extended, You can be sure to get that information here on your favorite PriusChat.
     
    #15 PriusDreamer, Dec 24, 2003
  16. sterna_paradisaea

    sterna_paradisaea New Member

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    Sterna it is - long story, but it's the species name for the Arctic Tern.

    Sorry the link wasn't helpful to you. What I got from it was that the bill had been reported out of one committee, but then quickly shuffled back into another one, thus the status as of June 19 of "RECOMMITTED TO RULES". Unless this gets some traction in the next legislative session, and the application is made retroactive to 1/1/04, I think NY is out of the hybrid credit business for the forseeable future.

    You can take some solace that the sales tax reduction is good through Feb. 29, '04. :)
     
    #16 sterna_paradisaea, Dec 24, 2003
  17. sjr14221

    sjr14221 Member

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    Okay, the plot thickens.

    From the USDOE website

    http://www.ccities.doe.gov/vbg/progs/laws2.cgi

    State Incentives
    New York's Alternative Fuel (Clean Fuel) Vehicle Tax Incentive Program offers tax credits and a tax exemption for purchasing new hybrid electric vehicles (HEVs), alternative fuel vehicles (AFVs), and/or install clean fuel vehicle refueling equipment. Purchasers of qualified HEVs are eligible for a tax credit of up to $3,000, depending on the vehicle's fuel economy. To qualify, a vehicle must draw propulsion energy from both an internal combustion engine (or heat engine that uses combustible fuel) and an energy storage device; and must employ a regenerative braking system that recovers waste energy to charge that device, and, for model year 2004 and later, must meet or exceed the California LEV II emission standard. Current production models such as the Toyota Prius and Honda Insight qualify. The maximum value of the incentive is $5,000 for vehicles weighing less than 14,000 pounds (lbs.) gross vehicle weight rating (GVWR). The incremental cost of clean-fuel vehicles is exempt from state sales tax; his exemption expires February 28, 2004. These incentives apply to vehicles and fueling property placed in service by December 31, 2006. For more information, please contact the New York State Energy Research & Development Authority (NYSERDA) at 866- NYSERDA, via email at [email protected], or visit the Web site at www.nyserda.org. (Reference Senate Bill 4523, 2003)

    I took this paragraph to mean that the Bill is a done deal. On 2004-prius, however, they say it is still in Committee.

    There's only a handful of us here at work and I have plenty of time to obsess over things which I can't control.....

    Sharon
     
    #17 sjr14221, Dec 24, 2003
  18. sjr14221

    sjr14221 Member

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    Well, the sales tax exemption is expiring this month, I can't recall if it was Feb 1 or Feb 29. Doesn't really matter, cause I still don't have my car! :(

    I have drafted a letter to the State Government asking their support in reviving the credits (via several bills currently in deliberation). I sent it to the local clean cities representative first, haven't heard back from her, yet. I guess I could just send it to my legislator and assemblyman without her review.

    I am still hopeful. Sorta. :?

    Sharon
     
    #18 sjr14221, Feb 12, 2004
  19. mielikki_eo

    mielikki_eo New Member

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    I'm doing my NYS taxes now and looking at taking the $2000 income tax credit. It seems too good do be true...

    Has any one filed IT253 and taken the credit?

    Do you also get to carry the $2000 deduction to you AGI that you took in the federal form or do you have to add that back in? (That is showing up on IT-201 line 17 "total federal adj. to income".)
     
    #19 mielikki_eo, Apr 4, 2004
  20. rivernet

    rivernet New Member

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    Saw through this thred that New York State offered a sales tax refund on $3000 of the purchase price if bought before Feb. 29, 2004. Bought mine on Feb. 19 checked with NYS today and I am entitled to a $217 refund on paid sales tax. Another good reason to drive green. Thanks for the information. Gas savings, federal and state income incentives and sales tax refunds make the Prius a smart buy.
     
    #20 rivernet, Apr 5, 2004
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