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Old 05-07-2013, 10:18 AM   #1
FJ60
 
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Customer Cash / Private Offers Pre-Tax?

Maybe this should have been posted in the "California" thread, but I'm curious about other states, too.

Is the customer cash and/or private offers applied pre or post tax. I know in California "$100 iphones" are taxed at their full retail value.
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Old 05-09-2013, 08:11 PM   #2
JimE


 
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Post tax.
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Old 05-09-2013, 09:06 PM   #3
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it's state dependant.
in RI, much like California, you pay taxes on the full retail cost of a cell phone as well.
But from my research, with cars taxes are applied to the final price you're paying after incentives, rebates and trade in.
Again it varies state to state.

Here's the table from edmunds that explains if you pay taxes before or after both trade and incentives/rebates.

http://www.edmunds.com/car-buying/wh...d-you-pay.html
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