[3ismagic#]

So I bought a car yesterday. Yay. I’m happy with the deal overall but that is not what this thread is about.

Here’s my issue. I live in PA but bought the car in MD. In PA the state doesn’t tax rebates. Maryland (like many states) does.

While doing the paperwork I noticed that the final payment was a couple bucks a month higher than my calculations produced (and the calculations the sales manager had sent me earlier in the day). I noted that PA doesn’t tax rebates but the F&I guy insisted they do. We went back a forth. In the end I thought that maybe I could have been mistaken after all this guy does this every day. It was also just a few bucks a month and it was very late in the day and I had a long drive home ahead of me so I signed the paperwork and took delivery.

I have now confirmed that indeed PA doesn’t tax rebates. In the end it’s only about $200 but it’s more about the principle of the thing. Either the guy is ignorant of the various laws he must interacting with on a near daily basis or he was actively deceptive. I suspect the later. Do I have any recourse? Should I make a stink about this? Should I threaten poor survey responses to get satisfaction?

He also charged sales tax on the acquisition fee, DMV fees, and the doc fee. Not sure if those are taxable in PA.

[themnmd]

get a copy of Pa DMV law and show them

[Transfer]

If he's in the wrong and you challenged it but he didn't care to listen or check, then absolutely I would hold hostage satisfaction survey until you are satisfied. Try going through your CA or the GM to address this.

[drexplode]

For $200 ask for a refund check or some goodies that you have been eyeing for a while.

[The J-Man]

This is a complicated one and probably not worth your time, but I'll try to help. I deal with sales tax for a living. Did you lease or finance? How did you confirm that PA doesn't tax rebates? What kind of rebate was it? Loyalty or lease cash? It would surprise me if either were nontaxable in PA. The commonwealth of PA is hands down one of the worst (borderline corrupt) taxing agencies on planet earth.

[3ismagic#]

Originally Posted by The J-Man

This is a complicated one and probably not worth your time, but I'll try to help. I deal with sales tax for a living. Did you lease or finance? How did you confirm that PA doesn't tax rebates? What kind of rebate was it? Loyalty or lease cash? It would surprise me if either were nontaxable in PA. The commonwealth of PA is hands down one of the worst (borderline corrupt) taxing agencies on planet earth.

Lease it was 1/2 lease cash and 1/2 conquest

Couple of sources. 1) looking at my Alfa Romeo lease from 24 months ago (from a PA dealer) they didn't tax the rebate. and 2) this lists states that don't tax rebates/incentives

http://www.realcartips.com/newcars/4...centives.shtml

[The J-Man]

Originally Posted by themnmd

get a copy of Pa DMV law and show them

This has nothing to do with the DMV.

[The J-Man]

Originally Posted by 3ismagic#

Lease it was 1/2 lease cash and 1/2 conquest

Couple of sources. 1) looking at my Alfa Romeo lease from 24 months ago (from a PA dealer) they didn't tax the rebate. and 2) this lists states that don't tax rebates/incentives

http://www.realcartips.com/newcars/4...centives.shtml

Is the tax on your lease payment calculated at your home address tax rate?

Which tax rate did they charge on the acquisition and doc fees? Maryland or PA?

[3ismagic#]

Originally Posted by The J-Man

Is the tax on your lease payment calculated at your home address tax rate?

Which tax rate did they charge on the acquisition and doc fees? Maryland or PA?

They are charging me PA sales tax rate (9%) not Maryland which is 6%.

[3ismagic#]

Update: The dealer has agreed to reimburse me for the tax overcharges.