Cancelled PA Extended warranty

Bought extended warranty for vehicle last summer, then cancelled within 30 days. Toyota credited my loan the sale price of the warranty, but not the tax on the warranty. Dealer said they do not process refunds for the tax, and Toyota said the same thing. How do I get this money back? Is it something on a tax return?

 

The state has loopholes to keep your money, ever notice when you pay a core charge at the auto part store that you pay tax on the core but don't get it back when you return it.

 

That just blew my mind.

 

I didnt even realize it had been that way till recently, next time you pay a core charge take a look at the receipt.

 

Imagine all the time they spend figuring out ways to tax you.

 

Like others have said it’s a bad loophole.

Also, it’s a sales tax on a service which labor is not subject to sales tax, only goods are. But, you’ll see a lot of places add sales tax on a service.

The legit places will only tax goods or supplies. Like a shop installing a $100 part for $100 labor. The sales tax should only be on the $100 part, not the $200 entire bill.

 

I'd say that it depends. Here in California, it's tangible goods that are taxable, but as a photographer, the state considers what I do as manufacturing and therefore my entire invoices are taxable - if I'm delivering a tangible product - a print, a hard drive, a CD or DVD. They don't consider it a service. But if I deliver files electronically over the internet, there is no tangible product and no sales tax is collected.

What I ran into a few years ago that may apply in this situation had to do with Canon Professional Services, where you pay a fee for expedited repairs, equipment loans and discounts on parts and service. Canon was charging sales tax on that. The State Board of Equalization told me that, because part of what that service was providing, discounts on repair parts, that they considered the whole thing a taxable item, whether or not you used that part of the program.

The bottom line is that you have to know exactly what is being offered and dig into your state's own sales tax laws to understand how they apply to you and your state. It's entirely possible that things are being misrepresented as many businesses play it safe by collecting tax even where they don't specifically need to. The state is not going to ding them for doing that as they get more coin, and in most cases the amount is not enough to make a huge fuss over.

 

TN tax law:
if the service you provide includes repairing, creating or installing a product, you may have to deal with the sales tax on products.

 

Good info

 

So is the consensus that I am shit out of luck?

 

I think so...