Anyone have to pay this for their new S2K?

 

i did. it was like few hundred bucks

 

The auto luxury tax was originally a 10% tax on the retail price of autos above $30,000. In 1993, Congress repealed luxury taxes on boats, planes, jewelry and furs, but not on autos. Rather than repeal the tax on autos, Congress indexed its threshold to account for inflation. As part of an industry-wide working group, AIADA successfully lobbied Congress to begin phasing out this tax on America's small business auto dealers. On August 28, 1996 the tax rate decreased from 10% to 9%. Its rate will continue to decrease by 1% each year until January 1, 2003 when the tax will expire. As of January 1, 2001, the luxury tax is calculated at 4% of the amount of the selling price in excess of $38,000.

 

Don't believe I paid for it. Damn should look at my bill before reaching my wallet.

 

When did you get your car? How much was the sale price? You probably did but didn't know it.

 

If you paid it, you can get a refund.

 

I did, don't remember for how much and I didn't know you could get a refund. DAMN!

 

It really depends on what year and how much was the transaction price of your STooK:

*On Jan 1, 99 and after - 6% on new vehicle w/ a transaction price in excess of $36K
*On Jan 1, 00 and after - 5% on new vehicle w/ a transaction price in excess of $38K
*On Jan 1, 01 and after - 4% on new vehicle w/ a transaction price in excess of $38K

Here is an example for sales on and after 1/1/99:
Transaction price: $42,000
Tax Rate: 6%
Tax Threshold: $36,000
$42,000 - $36,000 = $6,000
$6,000 is the taxable amount
$6,000 x 6% = $360
$360 is owed for the luxury tax

Trucks, vans and sport-utilities with a loaded gross vehicle weight over 6,000 lbs. and used vehicles are exempt. Finally, check this out (loophole): if you add $1,000 or more in aftermarket parts to a car within six months of purchase, and the value of the vehicle and the new parts exceeds the tax threshold, you are liable for luxury tax (unless the parts convert the car to an electric or clean-fuel vehicle). Yeah, how many of us would volunteer to give Uncle Sam your $$$$$...Go figure!!!