a question about tax...

[phillip]

Originally Posted by fistpoint

Shouldn't the tax be applied to the vehicle and accessories only? The fees should be added after the vehicle + tax, or am I mistaken? I see this little piece as another way for the dealer to squeeze a few extra bucks out.

Originally Posted by fistpoint

Oh I'm sure it is, but should it be, legally?

You DO realize that they don't keep the tax, right?

It'd be nice if we were like some European countries and had tax built into the prices of what we buy, but think of it this way: If Walmart were to input taxes into what they sell, the prices wouldn't look as attractive. Say you see something on the shelf for $1.99, which ends up being something like $2.14 after tax. Companies like to put nice round numbers on what they sell, as it encourages the consumer to buy them. They can't still charge $1.99 for the item after tax, because their profit margins are already very small (and why would they throw away a majority of their profit anyway?). They could round the price up to $2.25, but in that case you pay even more just for the convenience of having the tax added in! Then you add in the complication of different sales taxes (or smaller food taxes in some cases) among different states (and even within the state!) and people get confused and complain when an item appears to cost more in one store than it does in another one a couple miles away.

[fistpoint]

Originally Posted by phillip

You DO realize that they don't keep the tax, right?

Of course I do. But you realize if it turns out to be true that they don't have to tax the fees, that they won't be paying that extra in taxes.

Example: go buy a gun through state-state transfer and pay the transfer fee. Some dealers charge tax on that transfer fee, while others do not. The guy that does simply pockets the tax because it doesn't need to be paid because it was never needed to be collected.

If they only owed say $100 to the state but collected $110, they aren't going to give the extra $10 away for nothing.

[phillip]

Originally Posted by fistpoint

Of course I do. But you realize if it turns out to be true that they don't have to tax the fees, that they won't be paying that extra in taxes.

Example: go buy a gun through state-state transfer and pay the transfer fee. Some dealers charge tax on that transfer fee, while others do not. The guy that does simply pockets the tax because it doesn't need to be paid because it was never needed to be collected.

If they only owed say $100 to the state but collected $110, they aren't going to give the extra $10 away for nothing.

If they have it written down as being taxed and they aren't actually giving that money to the state then you could sue their pants off.

[fistpoint]

Originally Posted by phillip

If they have it written down as being taxed and they aren't actually giving that money to the state then you could sue their pants off.

Lol, highly unlikely.

Who's going to hire a lawyer to sue to reclaim a couple hundred dollars anyway? "sue their pants off" suggests a big lawsuit, when in reality it wouldn't be anything higher than small claims court.

They would win the case by simply saying they made a mistake.
.
.
.
I spent a couple hours on Edmunds forums last night and there are lots of threads asking the same question I am. Nobody over the several years of answers provided one with any certainty...all were guesses and assumptions, just like the responses here.

What we need is a tax attorney or small business owner to reply here in regards to taxing non-material things.

[phillip]

Originally Posted by fistpoint

Lol, highly unlikely.

Who's going to hire a lawyer to sue to reclaim a couple hundred dollars anyway? "sue their pants off" suggests a big lawsuit, when in reality it wouldn't be anything higher than small claims court.

They would win the case by simply saying they made a mistake.
.
.
.
I spent a couple hours on Edmunds forums last night and there are lots of threads asking the same question I am. Nobody over the several years of answers provided one with any certainty...all were guesses and assumptions, just like the responses here.

What we need is a tax attorney or small business owner to reply here in regards to taxing non-material things.

They'd be in big trouble because they'd be committing fraud. They couldn't claim it was a mistake if they've been doing it to everybody who comes in.

[7thgear]

Originally Posted by fistpoint

Oh I'm sure it is, but should it be, legally?

You even say that labor already is taxed, therefore the DOC fees should also be "pre-taxed" IMO, for the same reason.

Again, I have no doubt the experiences we've all had over the years in paying it the way you state, but do we really know if we could have done it my way? Has anyone tried?

I've never had this much trouble because I always offer a drive out price, very simple. However they calculated taxes/fees on my purchases, it came from inside the number I offered. For all I care they could have a $20000 DOC fee listed taxed or not.

you must be a Romney supporter

Taxes are what allows you to live your life the way you are living it. It's called wealth redistribution.

Be glad you're only paying 8%

[dietz]

Your best bet (and easiest) is to simply ask your dealer the out the door cost, as has been mentioned. I looked at those sites and often the information is incorrect. One of them said my state tax was 8% when in fact it was only 3%. Just call your dealer.