Lipets wrote:
jgolden wrote:
$10K is a big ticket charge. My county is 8%.
My last new vehicle (pickup truck) NY charged tax on MSRP. Rebates and discount off the price were taxed. Tax website explains it, or at least restates it.
Rebates are taxed, I agree.
Discounts are never taxed in NY
You are never taxed on MSrP in NY, I would guess that no state does.
Thanks just got back to this post.
This from NY state Tax Dept
New vehicle (prior to rebates)
$25,000
Minus dealer’s rebate
- 1,000
Taxable amount
$24,000
In this example, since the dealer will be reimbursed by the manufacturer and the credit card company, neither the $2,000 manufacturer’s rebate nor the $500 credit card rebate may be deducted from the amount subject to sales tax. However, the dealer’s rebate of $1,000, which is not reimbursed by any other third party, must be deducted from the taxable amount.
Depends on what you call MSRP. If the dealer gives no "rebate" then the MSRP and the Taxable amount is the same, or so it appears.
As you can see the "price" example includes manuf rebates of $2000 and a credit card deal credit of $500. To get to the $25,000 sale price. Eliminate the dealer discount and the MSRP is the starting point.
I'll have to dig out the original paper work.