Tax on incentives in PA

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22

Do you know this with 100% certainty? Just want to make sure. Also are you a PA resident?

23

I have only leased 2 vehicles in my life up to now but have been a voracious reader of leasehackr over the past 2 years. I had no idea what I was doing on those first leases so didnā€™t even think about this question.

However, having gained tremendous knowledge, and with my lease ending in 6 month, with my eye on a 4xe with $12k of incentives minimum this absolutely matters now,

I am honestly shocked that this is not a yes/no definitive answer. Is this a PA specific thing with the vagueness?

24

@HersheySweet

Would you mind weighing in over here?

25

Last I checked, no tax on rebates

For a data point my eqs had no taxes itemized

26

Leased a number of cars in PA over the years. Did not pay tax on any of the incentives. As it relates to Jeep, leased a wrangler 4xe about a year ago from a MD dealer and just leased a GC 4xe last month from PA dealer with no tax on incentives. About to lease another GC 4xe and there isnā€™t tax on the numbers Iā€™ve seen thus far.

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27

Thank you @Brown623!

28

As a PA resident, hoping to confirm:

  • It should not matter whether leasing out of state or not, correct? If vehicle registered in PA, itā€™s untaxed?

  • Are all types of incentives untaxed in PA or only certain? (e.g. dealer cash and customer rebates like loyalty?)

Kinda want to look back at my last few leases to see if the out of state dealer did it correctly, as Iā€™m not sure if something like this would caught and kicked back if incorrect. Is there a quick way to tell on standard lease agreement whether they taxed the rebates?

This is good to know ā€” previously when finding target deal based on pre-incentive discount & rebates, I donā€™t believe Iā€™ve ever consistently used the untaxed incentives field exclusively. I prob left some money on the tableā€¦

29

PA does not tax incentives

30

So the incentives/rebates advertised on Audi etron GT should not be tax in PA when used as cap cost reduction, correct?
Thanks

31

Out of State dealer is insisting that customer direct rebates are taxed in a lease. Does anyone have documentation I can share with them stating otherwise? And to add to the confusion more, a trusted broker here is also stating that rebates/incentives are taxedā€¦so confused

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32

Did anyone ever get a final answer on this? I have an NJ dealer not charging tax on incentives and a PA dealer charging them.