Dealer "forgot" to charge sales tax on sale?

Glad it eventually worked out financing through your own CU, that IS always an option.

In your specific situation though you may have actually been able to be a dick about it and forced the dealer to buy down the rate. 4-5 weeks is way passed the deadline to received a letter of rescission in ANY state. Most states its 10 days. So if they haven't funded the deal in 10 days they MUST send you that letter or else they don't have recourse.

But I advise anyone be REAL careful playing that game, its possible, but dealerships also have lawyers on retainer and have a lot more $ and resources than you do... so it can get ugly. I wouldn't gamble on something like taxes like OPs situation.

 

Agree
30 years in the Auto Business 26 years in upper Management.
Pay the Taxes there is no loop hole to get around it.

 

Is that true? I seem to recall having to provide proof of taxes paid in order to register plates.

 

Just asked a friend, who is the controller for a large auto dealership group. He says, "seller" collects taxes YOU owe and forwards to state, usually done so sales tax can b e included in loan. It's your burden to pay sales taxes. If they aren't paid, you are still liable. The state can freeze your registration (among other tactics) You would need to pay taxes due in order to release the frozen account. You may then sue the dealership....at risk of NOT winning that. Best hope would be to collect legal fees, late fees, etc. It WAS the dealers responsibility as a dealer to collect taxes. It is NOT their responsibility to PAY taxes.

Again, not my words (or opinion) but that of someone who makes a living dealing with selling auto's....

 

In Indiana the dealership collects the 7% sales tax for the state. If they would forget to add it, then when you go to the BMV I’m sure they would be on it. Either way, I know I would owe the state the 7%, wether it was a dealership mistake or not.

 

there are so many replies to this that I didn't read them all, but I agree with the N/A, signed contract and they are now responsible, looking forward to seeing how this turns out and I hope the OP comes out on top.

Would guess many state laws very for state to state, but its still the N/A that gets me, because the contact is not between the OP and the state, its between the OP and the dealer, the N/A says to me that the dealer is covering that cost.

 

What kind of barracks lawyer are you? I want my money back!

 

On a vehicle purchase, sure. That's even one of the form questions. But on a lease, since it is essentially a long term rental, I'm not sure that's the case.

 

Most states are applyIng sales tax to services as well as goods. Let's 'em tax EVERYTHING.

 

I hope he takes everyone's terrible advice and gets his truck repo'd, all for being a mooch and trying to dodge taxes he legally owes and knew about when he signed the lease 3 years ago

Also really weird a bunch of people who literally live off taxpayer money (yourself included) are in here encouraging tax evasion....

When you by a truck you know up front EXACTLY how much the tax will be, be man of your word and pay what you agreed to and legally SIGNED FOR. Trying to weasel out of a responsibility YOU KNEW ABOUT because of a typo is quite frankly, pathetic.

If my CPA called me back and said it turns out I owe $1,500 more than we thought I did, I wouldn't be a bitch about it and try to get my CPA to pay them out of his pocket, I'd pay the taxes I legally owe like any responsible man of his word would.

You guys are acting like the whiny little millennials you always make fun of...

 

I didn't make it past page 1 of this since reading is hard...

But I traded in a car I purchased many years ago. I bought that car used and wanted to upgrade to a truck. So, I traded in the car, got a truck. The dealership calls me a couple days later telling me I need to come back, the car I gave them has frame damage. I personally never knew this and already signed everything even stating I was unaware of any damage. They couldn't make me come back in for anything, the deal was done, contract was signed.

 

I'm not a lawyer, but I do practice law on Tacomaworld. Anyway, this is correct. I just sold a leased vehicle, tax is payed in monthly increments, if you release it earlier or at the end of the lease, or even if you decide to keep it, they only charge you tax for the months of service you use it. Buying it at the end will work as a regular purchase, you will be responsible for the sales tax of the remaining value, its no different that a regular car purchase at that point. The buyer is responsible, it is sales tax, it works like any other sales tax. Eventually the DOL/DMV will collect it, usually when registration is done.

 

Ignorance of the law is not a defense.

EVERYTHING is laid out in the contract he signed from the get go, playing dumb about it now is no excuse.

 

This ^ DMV will get you either way.

 

Lol yeah, every year as well.

 

Hats off to the tax resistor. When you get nabbed, remember to tell them you thought taxes were "voluntary".

oh, wrong thread

 

wow, the usual shit show I see...

I'd just pay em OP, it's not like it's something you owe the dealer, it's taxes and
one way or the other you're going to pay them. Can they work them into the
financing at this point?

 

I try to be worth more to my employer than a single mistake. If I get fired for one mistake, it's probably best to not have a job there. If they treat their employees like scum, how do they treat their customers? If it's one mistake out of 40, he should get fired.

2 wrongs....

Second this, just call the DMV, I've surprisingly never had a bas experience when I wasn't being a douche.

I just got my Washington plates in the mail. Never had to provide proof for renewals either.

 

Well yes and no... I'm sure they discussed finances before anything was put paper and verbally agreed to a price and finance (lease) conditions. That is the verbal agreement that was then put to paper by the dealership. Well the dealership made a clerical error. As I posted earlier this is considered a “Mutual Mistake". Both parties where aware there would be taxes, but they were left out due to a clerical error. This does not absolve the buyer from honoring the conditions of the verbal agreement. You can't "gotcha" people because of simple unintended errors of this type if you knew beforehand taxes would be owed.

 

Can you tell me who is responsible to collect an remit sales tax in the state of Texas?