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AikenRacer's avatar
AikenRacer
Explorer
Apr 19, 2019

Federal Excise tax on tires

Just had 8 new tires put on my mh for $5,500. They charged me $201 in FET and then charged me $400 tax on my total which included the FET. So I am paying a tax on a tax. I know there are tax friends out there. Is that right???

5 Replies

  • Isn't it great, our elected officials have time to do everything except what we elected them too do, and they still have time to poke us in the butt with a sharp stick.
  • It is a tax on a tax. Some states allow it, some don't. Wisconsin did away with that several years ago. Depending on where you bought the tires would depend on whether they could do so. FET is generally 12% so if you bought them in SD your tax would be $26.40 but in sunny California it would add $64.35 to your bill. YMMV....Dennis
  • I agree that it is tax on top of tax. Many items get an excise tax such as gas / fuel, propane, autos, cigarettes, etc. Seems we are taxed to death. Two things are for sure, taxes and death.
  • AikenRacer wrote:
    Just had 8 new tires put on my mh for $5,500. They charged me $201 in FET and then charged me $400 tax on my total which included the FET. So I am paying a tax on a tax. I know there are tax friends out there. Is that right???

    seems to be a simple math problem. what is the sales tax rate (%) at the point of purchase? cost of tires x tax rate = total sales tax.

    $400/$5500 = a sales tax rate of 7.27%.
    $400/$5701 = 7.01%