The new federal rebate program formally known as the "Car Allowance Rebate System" (CARS) or more popularly known as "Cash for Clunkers" offers qualified consumers a federal government rebate of either $3,500 or $4,500 on the purchase of a new car as long as the buyer is trading in a used vehicle with a combined fuel economy of 18 miles per gallon or less.
The Department of Revenue, in Directive 09-5 , has ruled that "provided that the transaction otherwise qualifies, the payment for the vehicle traded-in may be excluded from the sales tax price subject to tax."
The rebate, which the federal government pays to the dealer, becomes in effect the value of the trade-in, which, in turn lowers the purchase price, which, in turn, lowers the amount of sales tax paid for the new vehicle.
It’s All About Plain Talk posted on Aug 13
Commissioner Amy Pitter wants to be sure that the information going out of DOR to taxpayers is clear and concise. If you received a bill, form or notice from the Department of Revenue and are having trouble understanding what actions you need to take, tell …Continue Reading It’s All About Plain Talk
Take a survey — Your feedback impacts how DOR does business posted on Aug 4
The Department of Revenue wants to hear from taxpayers and anyone who is advocating for taxpayers! DOR has just unveiled its new “How Are We Doing?” survey page, and we’d like you to report in on your customer service experience. This page was created to …Continue Reading Take a survey — Your feedback impacts how DOR does business
DOR + Social Media — #CheckUsOut posted on Jul 28
State tax administration might not deliver such seismic news events as LeBron’s eagerly-awaited announcement of his return to his old Cleveland team, but knowing what’s going on at any given moment in the tax world could save you some time and effort, and maybe …Continue Reading DOR + Social Media — #CheckUsOut