Anyone know whether rebates are taxed in Arizona as cap cost reduction? Dealer is telling me they are but every online resource says they are not (salestaxhandbook, realcartips, etc.) Any insight would be appreciated.
I picked up a new lease in Tucson last month and, yes, the $30k rebate offered with the car was taxed.
They are taxed in AZ. I have purchased/leased several vehicles and it is always the case. However if you have a trade, only the difference in price is taxed in a purchase. On a lease if you have a trade any amount of rebates or down payment tax can be offset by the trade. This works really well if you have a trade and do a 1 pay lease.
Thanks everyone for your responses. Much appreciated.