Was sales tax charged on your clunker 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

 

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?

 

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.

 

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

 

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.

 

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! :rockon:

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

 

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.

 

Hey, I'm in Maumelle, AR and we got our car at North Point. The salesman told us that we would not be charged on the clunker rebate.

I'm thinking, yeah right. Why would the state give up that tax money? My Purchaser's Order shows the Cash Price of Vehicle (which is the selling price of the car), adds the service and handling fee, deducts a trade in of $4500, and deducts the check we wrote to come up with a balance due of $0.

Have you actually registered and paid your sales tax? We're still waiting on the dealer paperwork 2 weeks after the fact, so we can't register yet.

 

have you finally gotten your refund from the tax department? Which form did you have to file?

 

We paid sales tax in WV on the C4C$ , but I got a refund this week. I bought it in August. Did I charge them a penalty or interest?