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Absolutely not - Dealer's ripping you off (archive)
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Posted by Robin on April 02, 2000 at 17:16:05:

In Reply to: Sales tax on luxury and guzzler taxes? posted by chip on April 02, 2000 at 13:06:25:

I had this happen to me recently and called the dealer's bluff. First I thought he just didn't know what he was doing. Wrong. He was fully aware of what was going on - I would have ended up paying roughly $200 extra. Sales tax in most states is only payable on the price of the car, including the $570 destination charge. The gas guzzler and luxury tax (calculated w/out the guzzler, as 5% of that portion of car price in excess of $38,000) are excise taxes which are never subject to further taxation.

: I noticed a post that cautioned about dealers charging sales tax on the luxury and guzzler taxes. It didn't seem right to me when my dealer charged it, but he assured me I had to pay it. Any feedback?



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