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Question: Factory Rebate when calculating Sales Tax

Discussion in '2nd Gen. Tacomas (2005-2015)' started by khfactor, Nov 13, 2007.

  1. Nov 13, 2007 at 5:53 AM

    khfactor [OP] Well-Known Member

    Oct 24, 2007
    Philadelphia, PA
    07 White TRD Sport
    Pop N Lock + Hose Clamp. DTRL, AFE drop-In Dry filter, 6-1/2" Replacement Speakers, JVC HD Radio, Sam's club variety Floor mats (cheap but effective), Chrome Exhaust tip, Bed Mat from ol' Ford Ranger. As of 3/25/2020, the Odometer just turned 70K.
    :confused:I often wonder how each state or dealership treat Factory Rebates to consumers when it comes to calculating sales tax ...

    There seemed to be two methods of applying REBATE; one according to dealerships and one according to consumers like us. So if any of you have gone thru this, perhaps you can shed some lights on the issue....

    Say, for the sake of arguments, if the TRUCK total comes to $30,000 before tax, title, and tag. (using 6% tax as an example, and $150 for Tag & Title)

    We have the following scenarios:

    Method #1:

    Price of Truck $30,000
    Sales Tax $1800
    T/T $150
    Total $31,950.00
    Less Rebate $500.00
    Out the door $31,450.00

    Method #2

    Price of Truck $30,000
    Less Rebate: $500
    Subtotal $29,500
    Sales tax $1770
    T/T $150
    Out the Door $31,420.00

    I know ther is only $30.00 difference, but who is RIGHT ??
  2. Nov 13, 2007 at 8:56 PM
    Simon's Mom

    Simon's Mom Wag More Bark Less

    Apr 12, 2007
    First Name:
    Judy or Jude :)
    NEK Island Pond VT
    13 TRD OR DC MGM
    Stock for now
    Vermont taxes pre-rebate meaning you get your rebate after the tax is figured in. I don't know if its right, wrong or indifferent, but just the way it is here. Even if you buy an item at Costco that has an instant rebate, you get taxed on the item pre-rebate.

    Also, get this, you get taxed in a private party sale, not on your bill of sale, but nada book value. No matter what you pay, if its worth more, the state wants what the book says. Every window at DMV has the book and looks it up. The only way around it is to go to a dealer and get it appraised which cost you money, then bring that form in and they then tax you on the appraisal. Of course if its less in the book, you pay your bill of sale. Totally messed up. Clerk told me its because too many people were lying on their bills of sale, so hit the honest guy.

    That is why I buy online (no tax yet) or go to tax free NH, the live free or die state to shop as much as possible.

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