The hell it doesn’t! Regardless of the time, ILLINOIS did not refund the earned portion of the tax!
I knew it but completely forgot about it. Please Sire, a thousand pardons your excellency!
Pretty much everyone in a lease today in the state of Illinois is paying taxes on the base payment. So your argument has no relevance
Well, apparently you didn’t know how to compute NJ tax either, genius. To wit…
With the tire taxes, I’m just under 1700. About 40 bucks off.
You just don’t get it, do you? Why don’t you hire an LD tutor and have them explain it to you.
Lol you don’t have a clue keep doing your math. You made a bold claim about a dealer overcollecting sales tax, which is a felony I believe (not sure here) didn’t have anything to back it up. I said it’s pretty damn close to being right.
Clearly your common sense isn’t your strong suit
Joking about mental illness is a class act. Bravo
This discussion needs to take a left turn back to civil discourse, please.
References to folks having learning disabilities is not necessary or acceptable.
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Thank you… he will probably continue to joke about mental illnesses… surprised he would go that low… but nothing surprises me about this site anymore
Can you show me why the 1,744.10 tax is correct? After all, you were off by $40… How do you know there wasn’t a mistake made if you couldn’t determine how they arrived at the 1744.10 tax? You make no sense.
You’re absolutely right. I apologize. I should not have said it.
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It’s not a mod you should be replying to…
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Regardless… what’s important is that I apologized.
What I said is generalized however not untrue…
I respect you man, but you have a bad habit of needing to constantly be the “smartest guy in the room” on every single thread…
Nobody said specifically it was’t possible for taxes to be refunded if totaled early on. Nobody even got into date of total loss specifically…Also part of the reason I said “depends who you ask”. If it were up to me, I would say to pay all the fees at signing.
In both comments we said fees, which doesn’t necessarily have to mean taxes…
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I’m just responding to what delta said and the topic of conversation. There is a large misconception in NY that you won’t get anything back, which is untrue.
No need to personally attack me
Sorry that this is long, but I want people to have accurate information, directly from the NY Dept. of Taxation.
First, actually, it is true that you won’t get the tax back in NY. It is well-settled in the courts that this pretty much never happens. I even looked up cases before my first lease in NY when I moved back from Boston. NY clearly states that the only time you get the tax back is when the car is a lemon.
I don’t mean to offend anyone, but I wish that, on subjects like this, people would reach out to those of us who are qualified and know what we are talking about. I know I’ve mentioned before in the forum that I am a tax attorney, specifically a state and local tax one. Note that anything here is NOT to be construed as me offering tax or legal help (not going to get in trouble for not making that statement!).
It is very clearly stated here that NY will NOT refund the tax:
This is on page 10 of NY pub. 839: https://www.tax.ny.gov/pdf/publications/sales/pub839.pdf?_ga=2.22853938.869770240.1550460162-1466875957.1550460162
For instance, courts in NY have said the following:
A taxpayer was not entitled to a refund of any portion of sales tax paid at the inception of a lease, when the lease was terminated due to the theft of the vehicle. The vehicle was stolen after only four months of the 36-month lease term and the lease was terminated when the insurance company paid the financing company for the value of the vehicle. The taxpayer sought a refund of the sales tax attributable to the remaining 32 months of the lease. The Supreme Court held that the tax was not “erroneously, illegally, or unconstitutionally” collected or paid. The taxpayer failed to meet his burden of proving that his interpretation of the statutes and regulations was the only reasonable interpretation, so he was not entitled to a refund. (In the Matter of Charles G. Moerdler v. Tax Appeals Tribunal, NYS Sup. Ct., Appellate Division, Third Dept., (2002) [298 AD2d 778,]).
I found another opinion that said no refund on tax when the lessee died one month into the lease. This was restated two times within the last few months:
New York law provides that the amount of tax due for the entire period of the lease is collected at the inception of the lease and **no refund or credit will be allowed based upon the fact that receipts due under the lease are not actually paid as in the case of early termination of a lease. (In the Matter of the Petition of Pollack, NYS Division of Tax Appeals, ALJ, [Dkt. No. 827607, 08/09/2018.])
The Division’s regulation does not permit a refund of tax in instances where there is an early termination of a lease, and that under the Tax Law, “all lease payments are deemed to have been paid and are subject to tax as of the time of the first payment under the lease.” (In the Matter of the Petition of Greenfield, N.Y.S. Division of Tax Appeals, ALJ, [Dkt. No. 827851, 09/27/2018.)
So there is your proof on that end. Next, to compute the tax.
The sum of the following are all subject to sales tax:
• any down payment, up-front payment, or due-on-signing payment;
• the total of the monthly (or other periodic) payments due for the entire
term of the lease;
• acquisition fees, bank fees, certain documentation fees (when not separately stated), disposition fees, warranty fees, such as extended service programs and maintenance programs, transportation and destination charges, advertising charges, dealer preparation fees, and any other fees or charges that are charged at the start of the lease period, if the fee or charge is not already included as
part of the monthly payment under the lease; and
• the amount of any rebate or incentive provided or reimbursed by the manufacturer or any other third party that is assigned or paid to the dealer and applied against the amount due under the lease, such as a factory rebate, first-time buyer incentive, college student incentive, or other similar rebate or payment.
Incentives that are not taxed are as follows:
-
any rebates, discounts, or similar incentives provided by the vendor (usually the dealer/lessor) and not reimbursed by the manufacturer or any other third party.
-
Factory-to-dealer incentives, i.e. rebates not paid directly to the customer. (I was looking for this and forgot it originally. https://www.tax.ny.gov/pdf/publications/sales/pub838.pdf?_ga=2.22853938.869770240.1550460162-1466875957.1550460162)
Finally, this should answer the question about taxes being taxed:
I hope this settles the debate, and again, I didn’t mean to offend anyone or shoot anyone down; I just wanted to set the record straight.
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NY refunds ACV in case of a total loss which includes taxes/fees, plenty of clients have gotten the tax portion back.
Insurer is required to reimburse the insured with the ACV. This means either
repairing the damaged item or replacing it with an item substantially identical
including sales tax (sales tax added to the value of the auto prior to the accident
before salvage value is taken). N.Y. Comp. Codes R. & Regs. tit. 11, § 216.6.
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Taxes are due and paid. Insults are thrown and apologies made. There is a lot of useful information here regarding Taxes in NY. Thank you for everyone’s contribution. With the questions answered the thread is now being closed. Thanks all.
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