Federal Luxury Tax on F150?

1,497 Views | 8 Replies | Last: 4 mo ago by AgCPA95
AggieKatie2
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10:29a, 7/6/24
AG
At Joe Myers Ford in Houston, got a price quote that included a federal luxury tax line. It's a F150 XLT.

Is this real? If not, surely it's a crime to try to charge a falsely claimed non-existent federal tax.

Also my trade-in value is more than the new vehicle sales price, but they are showing @$200 in sales tax.

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agnerd
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11:40a, 7/6/24
AG
Vehicle has to be over $100k to get luxury tax. Dealership probably added on there now so that you won't argue it, and then reclassify it as a dealer markup or something else legal during closing.

If the trade in is more than the new car, you will owe tax on the proceeds from the combined transaction. Make sure that if the dealer collects that tax that they forward it to the state and don't try to collect it and reclassify it as something else when you're signing the final paper work.
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Buck Turgidson
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12:55p, 7/6/24
Maybe they're a crooked dealership. I've never done business with them directly, but I did go window-shopping over there recently. They had a Tremor with a massive list of dealer add-ons that included spray-on bedliner. When I looked in the bed, there was no bedliner at all.
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Mas89
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In reply to AggieKatie2 • 3:39p, 7/6/24
AG
Check the Tommie Vaughn Ford F150 online trucks and prices. Looks like they have 146 new ones in stock.
Just leave a dealership trying to screw you. Luxury tax, additional dealer markup, etc. Just say bye and walk out.

The auto-start stop delete option on the window sticker is what I shopped for first.
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cheeky
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In reply to agnerd • 3:57p, 7/6/24
AG
agnerd said:
Vehicle has to be over $100k to get luxury tax. Dealership probably added on there now so that you won't argue it, and then reclassify it as a dealer markup or something else legal during closing.

If the trade in is more than the new car, you will owe tax on the proceeds from the combined transaction. Make sure that if the dealer collects that tax that they forward it to the state and don't try to collect it and reclassify it as something else when you're signing the final paper work.
Sticker over $100k or the agreed upon sales price?

Also, how can you owe additional sales tax if the trade-in is higher than the sales price? Your explanation is vague.
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dubi
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In reply to agnerd • 4:00p, 7/6/24
AG
agnerd said:
Vehicle has to be over $100k to get luxury tax. Dealership probably added on there now so that you won't argue it, and then reclassify it as a dealer markup or something else legal during closing.

If the trade in is more than the new car, you will owe tax on the proceeds from the combined transaction. Make sure that if the dealer collects that tax that they forward it to the state and don't try to collect it and reclassify it as something else when you're signing the final paper work.
I would argue that is just a refund check owed to the OP and NOT sales tax.

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cheeky
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4:07p, 7/6/24
AG
Based on what I am reading from Price Waterhouse Coopers, there is no luxury tax in the U.S. in 2024

https://taxsummaries.pwc.com/united-states/individual/other-taxes
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AggieKatie2
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5:29p, 7/6/24
AG
In the end it didn't matter, and I didn't see it on the final paperwork I signed.

Maybe it was an old form or such and they put something else in its place.

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AgCPA95
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5:38p, 7/6/24
AG
Might be mislabeled inventory tax many dealers love to try and tack on to every sale
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