Should dealer charge tax on MSDs?


I assume the answer is no, there should not be tax calculated on MSDs.

Yes, I wouldn’t expect and haven’t been charged tax on msds


Dealer fees were so much less than other dealers that I didn’t make an issue of what appeared to be tax at 6.25% on $1750 of MSDs. $110 is $110, but I was in and out of the dealership in 30 minutes on a pretty good I3 deal and didn’t want to mess it up.

No they shouldn’t and you should go back and collect your $110 if they don’t send a check for it now that the deal is done.

Tax was probably on rebates, not MSDs.

Some states tax MSDs - the calc on LH gets that wrong from time to time.

At $10,500 in rebates assuming loyalty it’d be a lot more tax if this is the case.

@Benedetto, Is that right? What states and for what purpose (Besides filling coffers) as it isn’t CCR?

I paid $1226.06 in total tax. I estimated that to be approx. $110 higher than it should have been. My educated guess is that is due to dealership charging tax on the $1750 MSDs. I know there is tax on the $10500 incentives and on the total lease payments. And, hell, Illinois may indeed tax MSDs-they tax everything else they can.

I appreciate this site. Got a pretty good 12% off pre-incentive deal on a 24/10 BMW I3 due to the advice I’ve seen here. And did it in a market (st. louis), that isn’t very lease competitive and averse to doing MSDs. I know I could have done a little better perhaps elsewhere, but with no shipping cost or broker fee, 12% was better than 13% elsewhere. Didn’t really want a $56,495 I3 Rex, but no cheaper Rex’s local.

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TBH you didn’t do bad at all and even we’re having trouble securing i3’s at especially competitive discounts as dealers are wise to the incentive push right now.

Same thing happened with the 4 series for a short time and eventually the purse strings came undone as the cars sat.