Texas Sales Taxes Hack?

Ask the Hackrs
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1

I just signed a lease for a Cadillac VISTIQ and noticed the dealer’s tax calculations doesn’t add up on the Texas Title registration form.

I didn’t make a trade-in or anything.
$66,523.91 x 6.25% sales tax should have = $4,157.74
but instead, the application says $1,729.62.

This has something to do with the “Fair Market Value Deduction” in the Texas Sales Tax code:

Question: Does anyone know how this actually works with the dealer? How can hackrs use this to reduce that pesky Texas sales tax? I had a broker work on this so don’t know how this actually worked on the backend. 6.25% on total sales price for leases is egregious!!

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2

They applied Texas tax credits

3

But it’s 2x more than 1.25%

4

Tax credits are like coupons, you can add them to a max redux or 1.25…. They’re based on unused sales tax the dealer remits to the state

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5

So you can negotiate with the dealer to apply tax credits to offset your tax bill. Good to know​:+1:t3::+1:t3:

6

How do you know so much? Lol

7

No.

It’s not up to the dealer.
If the lender is offering lender tax credit then they may apply it to your deal.

If the lender isn’t offering it then you’ll be paying full sales tax on the sales price less incentives, End of story.

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Also, I believe that lender tax credits may also be model-specific in many cases…correct me if I’m wrong.

9

For BMW for sure. It was just the BEVs for years. Now I think they’re gone for the EVs and are only for select slow-selling ICE models. Or maybe they’re all gone. Toyota last month had last-min tax credits on Accords. Some Hyundai dealers had them for Iconiq units, some didn’t. Just so hard to tell and is very hit or miss…

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10

Toyota had credits for the Camry, or Honda had credits for the Accord (I wasn’t paying close attention last month)?

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LOL Toyota Accord. Shows you how much I was paying attention when I typed. It was the Honda Accord.

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