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Originally Posted by 2016 Camaro SS
This one is just based on Texas, so I'm not sure if this carries over to other states or not. This is why they try extremely hard to get rid of cars in December, especially 2014 models, but even 2015's as well. I've had a few people tell me this, but I've just never really researched it.
http://txdmv.gov/publications/doc_do...nventory-taxes |
According to Texas state tax code 23.122, which this pamphlet referrs to, this vehicle inventory tax (VIT) is taken at the sale of each vehicle, not simply having them on the lot. The VIT form must be completed regardless whether or not there have been any sales, but in the event of no sales, the VIT form will report $0 levied taxes to the dealership pertinent to this specific sales tax
http://www.statutes.legis.state.tx.u.../htm/TX.23.htm
We'd live in a sick, sick country if we were taxed by simply having inventory on hand. We're not far off, though.
A good rule of thumb for taxation is that for every dollar one earns, the government is looking for their share. Exemptions in the form of tax credits are the only safeguard from all revenue sources- the rest are just temporary shields or, even worse, prepayments.