Did anyone else get a "Refund on Taxes" from their auto-dealer? I just got a letter from Toyota Motor Credit Corporation that says $787 was creditted to my account because of a "Refund on Taxes" from the dealer. My dealer screwed up a bunch of things, so it makes me a little suspicious to see a letter like this in the mail (not that I'm complaining). Does anyone know if this is normal?
* Quick Update - It looks like the amount is the amount I paid in city tax. I did a quick Google and discovered this note about my city's tax rates on the Colorado Department of Revenue webpage: "The (Greenwood Village) sales tax rate is 3.0%. Please note that this is a Home Rule City . Automotive vehicles registered to an address located in Greenwood Village are exempt from the 3.0% city sales/use tax. The Colorado Department of Revenue does NOT collect sales tax for home rule cities."
<div class='quotetop'>QUOTE(Boulder Bum @ May 15 2007, 11:53 PM) [snapback]443079[/snapback]</div> Wow, nice. We had to pay sales tax on our Prius here in WA state, it's 8.8%! Ouch. Dave
Any Sales Tax paid through the year can be deducted on the Tax Return - A good idea to consult a tax accountant.
<div class='quotetop'>QUOTE(The Annoying One @ May 16 2007, 12:36 AM) [snapback]443098[/snapback]</div> Yes, since I live in TX, I pay no state income tax. As a result, I deduct my sales tax by default. It was a nice windfall to get money back via the hybrid tax credit and the sales tax deduction. However, had I known I was buying a Prius earlier in 2006, I would've had more money from my check coming to me. I was sloppy. I prefer to get a as close to writing zero as possible on my return. C'est la vie.
<div class='quotetop'>QUOTE(DaveLeePrius @ May 15 2007, 10:01 PM) [snapback]443081[/snapback]</div> Right, but the sales tax is deductible on you Federal return in Washington. In '05 I got the $2000 deduction and the deduction for the sales tax. They didn't have the credit in '05. Dave M.
<div class='quotetop'>QUOTE(The Annoying One @ May 16 2007, 01:36 AM) [snapback]443098[/snapback]</div> I guess you are saying that one cannot be taxed twice for the same thing, once by the dealer and once by the state when they file their taxes?
<div class='quotetop'>QUOTE(Boulder Bum @ May 15 2007, 11:53 PM) [snapback]443079[/snapback]</div> It looks like the dealer collected sales tax that it was not empowered to. Perhaps it was caught when they were ready to submit the form and the calculations didn't match a supporting schedule.
<div class='quotetop'>QUOTE(JimN @ May 16 2007, 09:20 PM) [snapback]443886[/snapback]</div> I kind of figured that may have happened. I tell ya, my dealer made a total mess of the purchase! 'Sweet car, though! <div class='quotetop'>QUOTE(DaveLeePrius @ May 15 2007, 11:01 PM) [snapback]443081[/snapback]</div> Yeah, ouch. I think I still paid state sales tax, but I forget how much that was. Too bad you don't live a state away in Oregon. No sales tax, I hear.
