CASH for CLUNKERS SALES TAX UPDATE!
YOUR CLUNKER-JUNKER is a REBATE NOT a TRADE-IN!
Hold the phone; I have been updated on the latest in SALES TAX collection on the current CASH FOR CLUNKERS, CASH FOR JUNKERS program. YOU WILL PAY SALES TAX ON THE TOTAL AMOUNT OF THE SALE, including DOC FEES, warranties, etc., before the auto manufacturer rebate and CLUNKER REBATE are deducted from your gross total amount.
In previous blogs I stated, “be careful of dealers trying to charge sales tax by adding it to the sale price of the car.” This in addition to taxing it, which would mean you were paying the tax TWICE, before any tax credit was allowed. I was interpreting this as the dealer’s double dipping for their own gross profit. BEFORE the STATES banded together to deny any trade-in tax credit.
NOW the STATE governments, supported by the FEDERAL government CARS program administrators have jumped into the fray by insisting the STATES GET ALL THEIR SALES TAX! (In some reasonable thinking, the car not worth $100.00 should NOT be gifted a sales tax credit based on an elevated price, yet the program makes the dealer file a form noting the true salvage value.) ANYWAY, NO TRADE-IN SALES TAX CREDIT is ALLOWED because the trade is not represented as such on the purchase order.
The CASH FOR CLUNKERS IS A REBATE, subject to tax in your home registering state, unless you take delivery in another state. When taking delivery in another state, you will pay the sales tax % for the state where the deal was made, and show proof to your home state when registering. If you paid more sales tax to the state of purchase than your home state would have charged, TOO BAD, don’t expect a refund or credit for the difference. If you paid less tax, expect to be charged by your home state for the difference owed.
DO NOT CONFUSE THIS TRADE-IN TAX CREDIT WITH THE NEW CAR SALES TAX CREDIT YOU WILL GET ON ANY NEW CAR PURCHASED between 1/1/09 and 12/31/09. YOU CAN STILL DEDUCT THE SALES TAX YOU PAID on your FEDERAL/STATE INCOME TAX , if you itemize or prefer to take the lump sum deduction. TALK to your accountant!
Want to maximize your CASH FOR CLUNKERS deal? Call SARAH LEE MYCARLADY; 702-521-7546 and don’t pay STICKER!
qualifies for CLUNKER status at 10mpg
Want to maximize your deal? Call SARAH LEE MYCARLADY; 702-521-7546 and don’t pay STICKER!
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NEED AUTO FINANCE HELP or CREDIT report repair go to tell them MY CARLADY: Sarah Lee sent you. It’s a free consult and they do the right thing by you, fast, easy, cheap.
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Sarah Lee is an automotive executive with 20+ years of experience. She writes about Cars, and is a staunch consumer advocate on car related subjects. Her company: MY CARLADY is a car buyer’s service committed to getting you the best deal on your next new or pre-owned vehicle. You can reach her at www.mycarlady.com
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