Hi everyone. I recently used leasehackr to score a great deal on a Wrangler 4xe, so thank you! During my deal, the dealer (located in Virginia) told me I could not use my current vehicle as a trade-in credit towards my new lease. They accepted the car, listed it as a trade on the deal sheet and registration, but still charged me the full tax amount on the new vehicle. My registration sheet even shows taxable amount as $18,661 and the total tax collected as $2,769. This works out to 14.8% instead of 6%. When I pressed them on this, they told me their system simply wonāt allow for it and I could take it up with the Maryland DMV for a refund.
Has anybody experienced this before? Is the dealer correct? If not, do I need to press the dealer for a refund or will the DMV provide me with one, since it is a collected tax?
That is the taxable amount according to the MD title application the dealer filled out.
Selling price: $53,661.92
Trade-in Allowance: $35,000
Taxable Price: $18661.92
Gross Tax Collected: $2769.72
A Dealer telling you something wrong to get you to come in? Sure
No, crossing state purchases they cannot apply another stateās tax creditsā¦(AFAIK, there might be some kind of āagreementā but most states donāt communicate with each other for taxes)
Good luck, I doubt you will get it.
You can always ask the DMV, but since you traded it in VA and not MD, I doubt they will give you a refund either.
Thatās for Collecting Tax, not refunding tax. They donāt have a MD license so they would remit it under āuse taxā and donāt have a line in their forms for ātrade inā.
This isnāt a tax refund though. They collected too much tax according to the Title Application they filled out. I edited my original post to include a screenshot of it.
Yes, this is where it gets āstickyā, the MD dealer portion is emptyā¦
The text here implies they have a Maryland Dealer Certification, which a VA dealer would not have.
I think you are reading Section C wrong. Section C (5) describes what licensed Maryland dealers must do, but that doesnāt imply that you must be a licensed Maryland dealer for Section C to be valid.
Iām not trying to give you a hard time either, Iām not a law expert and I appreciate you reading through this as well. My current plan is to give the DMV a visit after I receive my plates to try and work it out. Was mostly wondering if any MD residents have done the same thing as me in the past and successfully gotten the trade-in credit.
Iām not a Law expert but I do have a bit of experience in Sales Tax, states do not like to refund sales tax and so far only CAās 10 day rule has caught me off guard.
Once a mistake on Sales Tax has been made itās such a nasty uphill battle.
Filling out over 100 Plus forms each month I get to see how taxes are applied / refunded each time.
(Yes over 100, counties and cities and little tiny Munis sometimes wants their own form. In some cases the STAMP is over than the amount remitted)
I donāt see a date on your purchase but I just realized if it hasnāt been funded yet you can ask the Dealer to unwind and redo the sale with the proper tax. (If they really CAN do it and they didnāt just tell you that)
Yeah I did press them quite a bit and they said they just couldnāt do it. Iām expecting this to be a pain if I go the DMV route, but I have to imagine that if too much tax was collected and paid to the state of Maryland, it can be refunded somehow. Fingers crossed I can get a helpful DMV employee that understands my issue.
In any case, I appreciate your insight. This additional tax isnāt a make or break for me, as I was still saving a ton through this dealer anyways. But if $1600 is on the table, Iām gonna try my best to get it.
I bought a car in VA a couple of years ago. I was a NJ resident at the time. I signed a form attesting that I was not a VA resident and not responsible for VA tax. The dealer collected NJ tax and DMV fees and registered my car in NJ. I was credited for the trade in on the sales tax calculation.
