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Old 08-20-2012, 01:12 PM
samualcc samualcc is offline
I probably dislike you...
Location: Philadelphia PA
Join Date: Sep 2011
Posts: 781
Mein Auto: 2013 328i Sport
Originally Posted by gerbs View Post
Can anyone else comment on this...? Jon come save the day please!

Does this discount come off the negotiated price which you THEN pay tax on,

or do you pay tax on the FULL amount of the vehicle, THEN get $1000 off the full amount?

My dealership seems to think it's the latter; where I have to pay tax on the full amount of the vehicle. Is this correct? So I am paying tax on $1,000 that I didn't really spend on the car?

If anyone can comment w/ their experiences it would be very helpful... Thanks in advance.
This is different state to state. In PA, the $1000 along with any other incentives is subtracted from the purchase price, pre-tax.

In CA, rebates from the dealer are not taxable, however rebates and incentives from the manufacturer ARE taxable.
2013 BMW 328i Sport - Back in the family!
2007 Honda Civic Si Sedan (Retired, Meh)
2005 Infiniti G35 Coupe 6MT (Retired, great car)
2002 325xi (Retired, very much missed)
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