Do rebates come off before or after taxes?
#21
#22
Senior Member
We have that here too. It sucks. Excise tax rate on a new truck is .024 rate here. I'll be paying $800 in excise tax plus registration. That's on top of the $2000 in sales tax.
#24
Somewhat moot since I think all states go CARB for 2016 with some exceptions.
https://www.ngvamerica.org/governmen...state-matters/
Last edited by 4js8wh; 07-29-2015 at 08:19 PM.
#25
Senior Member
I've seen some F150's on the PA lots with California emissions. My F150 has Cali emissions as well.
#26
Senior Member
In a lot (most?) states when the sale is to an out of state buyer, you dont pay sales tax at point of sale, you get a temporary registration and you settle the sales tax when you register in State. Of course some, like CA demand you pay their full sales tax if you drive it off the lot in CA, regardless if it is going out of State. My last Audi came from CA and i had to meet the dealer at the State line and have the transaction notarized so i didn't pay CA tax. I bought a (used) 911 down in the Bay area and had to trailer it back to NV to avoid the tax trap
#27
Hmm... Well I simply asked the PA dealer how taxes and registration would work across state lines. He told me I would pay taxes to them, and they use a "service" that takes care care of all the registration and paperwork on their end and I would need to do nothing more once all is said and done...
#28
Senior Member
Hmm... Well I simply asked the PA dealer how taxes and registration would work across state lines. He told me I would pay taxes to them, and they use a "service" that takes care care of all the registration and paperwork on their end and I would need to do nothing more once all is said and done...
#30
Here's how it works in IL:
http://tax.illinois.gov/LegalInforma...0/130-2125.pdf
Basically, if the manufacturer's rebate is payable because the the vehicle is sold, then it is taxable.
For a 2015 screw in IL:
- Ford is offering a $2,000 rebate on the 302A package. But this rebate is applied to the MSRP and thereby lowering the MSRP and the dealer's invoice cost. THerefore, this rebate is not taxable.
- Ford is also offering other rebates like a $1,000 customer cash incentive. This rebate is not paid unless the vehicle is purchased. Regardless of whether the customer or the dealer receives the rebate, the $1,000 must be included in the taxable transaction amount.
Another approach is X-Plan. There is a debate whether X-Plan saves you money -- I'm not going to get into that arguement.
But X-Plan is taxed differently than a rebateable vehicle.
Since X-Plan lowers the effective MSRP inlieu of certain Rebates, then sales tax is on the lower X-Plan price that replaces certain rebates. (E.g., certain Ford rebates for being a member of one club or another are not eligible with X-Plan. On those rebates, you pay tax, but you don't pay tax on the savings X-Plan provides).
http://tax.illinois.gov/LegalInforma...0/130-2125.pdf
Basically, if the manufacturer's rebate is payable because the the vehicle is sold, then it is taxable.
For a 2015 screw in IL:
- Ford is offering a $2,000 rebate on the 302A package. But this rebate is applied to the MSRP and thereby lowering the MSRP and the dealer's invoice cost. THerefore, this rebate is not taxable.
- Ford is also offering other rebates like a $1,000 customer cash incentive. This rebate is not paid unless the vehicle is purchased. Regardless of whether the customer or the dealer receives the rebate, the $1,000 must be included in the taxable transaction amount.
Another approach is X-Plan. There is a debate whether X-Plan saves you money -- I'm not going to get into that arguement.
But X-Plan is taxed differently than a rebateable vehicle.
Since X-Plan lowers the effective MSRP inlieu of certain Rebates, then sales tax is on the lower X-Plan price that replaces certain rebates. (E.g., certain Ford rebates for being a member of one club or another are not eligible with X-Plan. On those rebates, you pay tax, but you don't pay tax on the savings X-Plan provides).