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Discussion Starter #1
I am purchasing a 2015 (TPW 09/01 :D) and will paying the pre-increase price with a supplier discount. The car will be shipped to me here in Florida from the dealer I am purchasing from.

When I register the car here, will I pay sales tax on MSRP or the price after the supplier discount?

Thanks,
David
 

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I personally would have the contract price reflect the discounted price. This is the actual cost to you, so this is what you should pay taxes on.
 

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You pay sales / use tax on the price at the bottom of the sales contract the dealer provides you. The state only cares about what you paid, the rest is irrelevant (unless what you paid is radically low, like $10000).
 

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I personally would have the contract price reflect the discounted price. This is the actual cost to you, so this is what you should pay taxes on.
The bottom line on the sales contract must be the price you are paying or the contract is fraudulent.
 

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Discussion Starter #5
You pay sales / use tax on the price at the bottom of the sales contract the dealer provides you. The state only cares about what you paid, the rest is irrelevant (unless what you paid is radically low, like $10000).
Thanks, that's what I was hoping, but I know that if an item has a rebate you often pay the sales tax on the pre-rebate price.

David
 

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Thanks, that's what I was hoping, but I know that if an item has a rebate you often pay the sales tax on the pre-rebate price.

David
I was wondering why you asked, that explains it. The Supplier program reduces the price you pay, MSRP should never be on your contract, it's not a discount or a rebate, the supplier price is the sales price.
 

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Discussion Starter #7
Now that I think about it that makes sense. With a rebate you are paying full price and then getting part of your purchase price back, even if it happens immediately. The discount is before the purchase.

Thanks again,
David
 

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Now that I think about it that makes sense. With a rebate you are paying full price and then getting part of your purchase price back, even if it happens immediately. The discount is before the purchase.

Thanks again,
David
That's the way New York does it. I bought a new vehicle that had a large GM "discount/rebate/incentive/whatever" and a dealer discount. New York charged sales tax on everything except the
the dealer discount. The state computes the sales tax as if the GM incentive didn't exist.
 

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DE is pretty easy on sales tax (actually, DE is a no sales tax state, it's called a registration fee 3.7%), anyhow, what DE allows is a tax credit if you traded in or sold your vehicle to an auto dealer (new or used), you get the trade-in figure or sold figure subtracted from the sale price, that's what you pay your reg fee on. And tags are only $40 a year.
I like DE.
 

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Hard to give a universal answer, as sales tax and the base purchase price that the sales tax is applied to is a matter of law in the state in which the vehicle will be registered. However, unless you are paying MSRP, the MSRP is irrelevant.
 

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IMO You don't pay sales taxes on money you don't spend. What you pay determines the sales tax. Doesn't matter how the price was arrived at (trade-in/whatever).
 

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That's the way New York does it. I bought a new vehicle that had a large GM "discount/rebate/incentive/whatever" and a dealer discount. New York charged sales tax on everything except the
the dealer discount. The state computes the sales tax as if the GM incentive didn't exist.

Really? I lived in NY State for 13 years. Bought my first vette then. Did all my taxes and I don't remember if a paid taxes on the incentive I got then, but it was huge. Price new 1989 25G even, thousands off list all mfg discounts. Maybe things have changed.

Its unfair if you are paying sales tax on money you did not spend.
 

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But that is what a rebate is: a partial refund of money spent.

So, you pay for the whole price, plus tax on the whole price, and then you get the rebate subtracted.

On the other hand, for a discount, you apply the discount first, then compute the tax afterwards.

So, in many states (including CA) rebates get sales tax, but discounts do not get taxed.

Also, you don't get taxed on the amount of the cost of the new vehicle paid for by a trade. Trades are not taxable.
 
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Yes thank you rdslon. Good point. I have modified my post. It was a mfg incentive/discount which is much different and should not be taxed. LT1xL82 is saying he was taxed on mfg discounts even though he didn't pay them.
 

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But that is what a rebate is: a partial refund of money spent.

So, you pay for the whole price, plus tax on the whole price, and then you get the rebate subtracted.

On the other hand, for a discount, you apply the discount first, then compute the tax afterwards.

So, in many states (including CA) rebates get sales tax, but discounts do not get taxed.

Also, you don't get taxed on the amount of the cost of the new vehicle paid for by a trade. Trades are not taxable.
This post is the way it's done in FL. You are also taxed on all dealer fees and items like tire and battery disposal fees.
 

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A little off topic but still related - if you purchase a car from another state and have it shipped to your home state - do you pay taxes from your local state or taxes from the ship state where the care originated?
Thanks in advance!
 

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A little off topic but still related - if you purchase a car from another state and have it shipped to your home state - do you pay taxes from your local state or taxes from the ship state where the care originated?
Thanks in advance!
Rest assured you will pay taxes on your purchase.
 

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You should only pay taxes to the state in which the car is titled and registered.
 

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You should only pay taxes to the state in which the car is titled and registered.
Not entirely true. Many states require a dealer to collect tax and submit it to their local taxing authority. Most states participate in what's called tax reciprocity. That means you get credit in your residence state for sales / use taxes paid to another state on an out of state car purchase. States that participate in sales tax reciprocity also limit the tax collected by the selling dealer to the tax rate of the buyers state. If the buyers state collects more tax than the sellers state they only collect the local amount and you will pay the difference when you register the car in your home state.

There are a few states that do not participate ( I don't have the list handy) and it those cases, if you buy from a dealer who's state requires they collect the local tax you get double taxed.

Go to your states DMV site and search on out of state purchase, that will provide you with the accurate information for your situation.
 

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But that is what a rebate is: a partial refund of money spent.

So, you pay for the whole price, plus tax on the whole price, and then you get the rebate subtracted.

On the other hand, for a discount, you apply the discount first, then compute the tax afterwards.

So, in many states (including CA) rebates get sales tax, but discounts do not get taxed.

Also, you don't get taxed on the amount of the cost of the new vehicle paid for by a trade. Trades are not taxable.
That sounds just like New York.

I was taxed on the $6,000 GM "credit" was giving to all buyers of in-stock Suburbans and the $2,000 GM Customer Loyalty "credit". Whatever it is called, credit, rebate, money not paid, whatever, New York says it is a rebate and you pay sales tax on it. The roughly $4,000 discount the dealer gave me was not taxed. (Man they were making good deals in 2008!)
 
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