I understand that when you purchase a vehicle in NYS or nyc you pay the full sales tax on the purchase. However if the car comes with the rebate is that rebate taxed even though the full vehicle price is already taxed. My tax rate is 8.875%. Wonder if taxing the rebate again is how nys does it. thanks.
Vehicle price is $32,095.27
Rebate is -$2,500.00
Price after rebate $29,595.27
doc fee $449
License/title $257
Tax $3,110.18
Due on Delivery $33,311.45
Pretty much all states tax a rebate, ie customer cash, dealer cash would come off the price and is not usually taxable.
Yes they tax that rebate. Direct to dealer incentives usually aren’t taxed AFAIK, PA doesn’t tax any rebates at all and that’s nice.
The car is being purchased in PA and being registered in nys. Seems they are slightly overcharging the tax and title company will kick back the difference.
Worst case your tax bill should be $32095 x 8.875% and the tax on the doc fee.
Paying tax on the pre-rebate price means you’re effectively paying tax on the rebate. Another line item for tax on the rebate is just…
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