Gas Guzzler and Sales Taxes

[Toddh]

When I bought my SRT-10 this month, my dealer in Texas charged me sales tax on the final price of the car, including the $3K GGT at 6.25% ($187.50). At the time I wrote out the check, I questioned them on the rationale of paying a tax on a tax (I used to be a tax guy long ago). They said they didn't know the answer for sure but that they thought they were supposed to collect the sales tax. I double checked this with a Texas sales tax expert I know, and it turns out that I was correct: since the GGT is levied on the purchaser as a separate line item, no Texas sales tax is due. I don't know if a similar rule applies in other states.

If you're going to purchase an SRT-10 this year in Texas, you should consider bringing this up with the dealer. If you've already bought and paid for yours, you can actually still get a refund from the state. You just have to fill out a sales tax return

$187.50 doesn't make much of a dent in the price, but I figure the GGT is onerous enough without having to pay sales tax on top of it!

 

[Viperfreak2]

GGT ****, especially since Vipers are driven 1/10th the distance as some Toyotas that get 4 times the mileage.

 

[VNMOUS]

I contacted my states (GA) Department of Sales and Use Tax and was able to convince them that it is indeed double dipping on their part. I sent a copy of my invoice along with the window sticker showing this was a separate line item tax that just happened to be in the price of the vehicle. I ended up not paying tax on the GGT. Everyone that paid tax on it should be able to get a refund.