[TomD]

My dealer in NJ says that I need to pay sales tax on the negotiated price before
rebates are applied... $175 on $2500 of incentives. Can someone tell me if this is correct?... I can't find anything on the DMV website.

Thanks

 

[Limerick]

My dealer in NJ says that I need to pay sales tax on the negotiated price before
rebates are applied... $175 on $2500 of incentives. Can someone tell me if this is correct?... I can't find anything on the DMV website.

Thanks

That makes no sense and sounds like a dealer scam. I live in PA and from my understanding both PA and NJ use simple tax rates on vehicles. I only paid sales tax on the net price, which was the list price less all discounts, rebates, and my trade-in.

Your best option is to go to another dealer and shop around.

 

[PiperPilot03]

My dealer in NJ says that I need to pay sales tax on the negotiated price before
rebates are applied... $175 on $2500 of incentives. Can someone tell me if this is correct?... I can't find anything on the DMV website.

Thanks

In Illinois, that is how it works. We just bought 2 cars and had to pay tax on all the incentives.

 

[enmoco]

Deduct any cash rebates included with your deal if your state allows. For instance, if you expect cash back of $3,500 on a $25,000 car, your final figure for calculating sales tax is $21,500. But keep in mind that not all states permit this. You may have to pay sales tax on the purchase price before rebates (25,000 in this example). Again, check your state's sales tax department for the exact rules for this scenario.

 

[Rick2456]

GA is the same way

GA is the same way. You pay sales tax on the price before rebates are applied. For sure, a taxpayer ripoff.

In Illinois, that is how it works. We just bought 2 cars and had to pay tax on all the incentives.

 

[TomD]

I finally found documentation on a NJ.gov website... In NJ, we're required to pay sales tax on the amount before incentives are applied. I thought the dealer was trying to screw me... what a relief it's only the State of NJ.

Thanks

 

[20Sorento11]

NY is the same way. I got an estimate on a Sorento before I bought mine and was like um you did the math wrong here. Dealer said Nope we have to calulate ALL taxes before any discounts so the state gets their $

 

[Limerick]

I finally found documentation on a NJ.gov website... In NJ, we're required to pay sales tax on the amount before incentives are applied. I thought the dealer was trying to screw me... what a relief it's only the State of NJ.

Thanks

Yeah that stinks.... maybe you should have bought in PA and transferred to NJ, lol

 

[drexx3]

This is normally the way I've seen it done because the incentive is money from the manufacturer to the buyer. You either get the cash back or apply it to the deal. When applied to the deal it is in the form of a down payment, not a reduced sales price.

Generally only a trade can reduce the taxable amount.

 

[ErikHeiker]

Yeah that stinks.... maybe you should have bought in PA and transferred to NJ, lol

Buy it in Alaska and there is no tax. Plus, you'll have a beautiful drive home!