How can Fl charge sales tax on cash back on a new car sale. Price is advertised to everyone by franchised dea?

November 14th, 2009 | by admin |


Most states charge sales tax on rebates as on a car the rebate goes to the dealer. Rebates for other things are taxable as most rebates are never payed as promissed because some are never applyed for or the companys never send them to you because you didn’t submit the paperwork properly.

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Tags: Car Price, Car Sale, Dea, Dealer Rebates, new car, Paperwork, Promissed, Sales Tax, Tax Rebates

2 Responses to “How can Fl charge sales tax on cash back on a new car sale. Price is advertised to everyone by franchised dea?”

  1. By betrayedhusband on Nov 15, 2009

    Typically, rebates are considered AFTER taxes, etc.

    So if a car is $20,000 and there is a $1000 rebate and you have sales tax of 6% (hypothetical numbers here, I don’t know Florida specifics) they are going to charge you $1200 in sales tax, bringing the total to $21,200 and then give the $1000 rebate, making your out of pocket or amount to finance $20,200.

    A rebate is NOT a reduction in the price of the car, but it is money given back AFTER the sale.

    You typically sign a form that gives the rebate directly to the dealer. You could wait for your check from the carmaker if you wanted to.

    HTH
    References :

  2. By stacy on Nov 15, 2009

    Most states charge sales tax on rebates as on a car the rebate goes to the dealer. Rebates for other things are taxable as most rebates are never payed as promissed because some are never applyed for or the companys never send them to you because you didn’t submit the paperwork properly.
    References :

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