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  #1  
Old 09-19-2016, 10:01 AM
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Very Disappointing Repose From BMW ED Department

Well my ED was in 2014. Over the weekend, I got a letter from NYS taxation, saying I imported a car from abroad and I would be required paying sales tax on it.

Clearly, someone at the port didn't do the custom declaration correctly. (I've imported a few machineries for my business so I know)

I called BMW ED today. The lady on the phone kept telling me to call the dealership because they have no copies of the official invoice.

I said OK, I can provide copies of sales but it is never dealer's job to handle custom declaration. It is someone's screw up between BMW and clearing agent, may be BMW can do the last miles of the leg work for by submitting the documentation for me, helping me to take care of this problem. I got a flat NO.

It is very disappointing to hear BMW not willing to step up and help customer to resolve this problem.
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  #2  
Old 09-19-2016, 11:23 AM
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Indeed a screw up, don't recall reading about similar problems in this board. Curious, have you contacted your dealer, what's their response?
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  #3  
Old 09-19-2016, 12:12 PM
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I would guess that something may be going on with the NYS Computer Glitch-to-Ya Department... http://www.bimmerfest.com/forums/sho...d.php?t=930399 and http://www.bimmerfest.com/forums/sho...d.php?t=927000
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  #4  
Old 09-19-2016, 12:16 PM
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It looks like there are several samples happened before.

It seems to me that these ED cars need individual clearing instead of a batch electronic clearing (the typical way), they become red flags in NYS' eyes.

So lesson of the day: NYS people should not do ED?!?
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  #5  
Old 09-19-2016, 12:26 PM
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You will have a better response from BMWNA if your dealer is the one doing the talking...

Quote:
Originally Posted by mason View Post
It looks like there are several samples happened before.

It seems to me that these ED cars need individual clearing instead of a batch electronic clearing (the typical way), they become red flags in NYS' eyes.

So lesson of the day: NYS people should not do ED?!?
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  #6  
Old 09-19-2016, 04:37 PM
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More details?

The usual practice is that one pays their local dealer (or a Bimmerfest out of state sponsor) for the price of the car and sales tax. Are they trying to make you pay duty?
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  #7  
Old 09-20-2016, 06:59 AM
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Send them a copy of the sales contract or the registration forms that show the sales tax was paid. That is all they should need. Good luck. N4S
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Old 09-20-2016, 12:46 PM
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Quote:
Originally Posted by Dave 20T View Post
More details?

The usual practice is that one pays their local dealer (or a Bimmerfest out of state sponsor) for the price of the car and sales tax. Are they trying to make you pay duty?
No, they are looking for sales tax. It is straight from Albany so it is not import duty. I called Albany directly after the disappointing phone call from BMW. The lady asked me to send her copy of the transaction, which I'm faxing now.

Again, I understand mistake happen. I'm ok with that. I would expect BMW to say to me: Give us the letter and we will take care for you. But it is not the case here.

My worker compensation insurance company made a mistake few years back resulting me getting a fine from NYS ($5000). I called them and they said to "just send us that letter and we will take care everything from here.". I don't see BMW doing that.
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  #9  
Old 09-20-2016, 08:18 PM
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Quote:
Originally Posted by mason View Post
No, they are looking for sales tax. It is straight from Albany so it is not import duty. I called Albany directly after the disappointing phone call from BMW. The lady asked me to send her copy of the transaction, which I'm faxing
Ask your dealer?

I had to pay sales tax on both of my European deliveries because I bought them from out of state dealers.
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  #10  
Old 09-21-2016, 06:19 AM
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You should have paid your out-of-state dealer the NY sales tax when you purchased the car, and you should have a copy of your purchase order paperwork showing that line item.

This is not a BMW issue -- it's a dealer issue. The dealer should have charged and transferred the sales tax to Albany.

If the dealer didn't charge any NY sales tax on your deal, well then when you register your car in NY, you will have to pay it then.

I purchased my first ED from a NY dealer who did not charge the sales tax. When I picked up, he just gave me a 30-day tag. When I registered it in NJ, I had to pay the 7% at that time.
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  #11  
Old 09-21-2016, 07:42 AM
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Quote:
Originally Posted by mason View Post
No, they are looking for sales tax. It is straight from Albany so it is not import duty.
...
I would expect BMW to say to me: Give us the letter and we will take care for you. But it is not the case here.
That expectation is mistaken. It's not BMW NA's fault nor is it their job to fix it. BMW NA is the importer (responsibile for customs matters) but not the seller. The car was sold to you by a dealer, not BMW NA, and it's the seller's responsibility to collect sales tax (or document that the sale is exempt).

The responsibility to fix this lay with your dealer, which is exactly what BMW told you from the outset.
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  #12  
Old 09-21-2016, 09:26 PM
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It is impossible to avoid paying sales tax on a car. It is not BMW's issue.
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  #13  
Old 09-22-2016, 06:00 AM
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What does "custom declaration" have to do with state sales tax?. OP post confusing.
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  #14  
Old 09-22-2016, 07:16 AM
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Quote:
Originally Posted by Wine-O View Post
You should have paid your out-of-state dealer the NY sales tax when you purchased the car, and you should have a copy of your purchase order paperwork showing that line item.

This is not a BMW issue -- it's a dealer issue. The dealer should have charged and transferred the sales tax to Albany.

If the dealer didn't charge any NY sales tax on your deal, well then when you register your car in NY, you will have to pay it then.

I purchased my first ED from a NY dealer who did not charge the sales tax. When I picked up, he just gave me a 30-day tag. When I registered it in NJ, I had to pay the 7% at that time.
This is most likely.



Though in my state of WA, they even charge "used" sales tax for car being registered from out-of-state into WA or new title (transfer to new owner) and that is based on county of resident where the car will be and blue-book value.
So a same car being sold 3x, once new then twice as used in WA will generate sales tax 3x, so how in the world city/county can go bankrupt
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  #15  
Old 09-22-2016, 08:37 AM
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No, the letter says "based on the data from US Custom and Border Protection................"

If it is a simple sales tax issue, it is not going to say information from US Custom. FYI, I paid the sales tax up front to an out of state dealer.

I really believe it is an effort by NY State to make sure there is no revenue falling through the cracks. They are flagging these cars since they come in pretty much 1 or 2 at a time vs. 100 cars filing for custom clearing.
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  #16  
Old 09-22-2016, 08:40 AM
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Quote:
Originally Posted by Gary J View Post
What does "custom declaration" have to do with state sales tax?. OP post confusing.
The letter says I should pay sales tax based on information from US Custom.

The interesting part is that they are not checking if dealer fails to collect or I fail to pay. They are relying on the information filed at the port to US Custom.
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  #17  
Old 09-22-2016, 08:43 AM
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Quote:
Originally Posted by pharding View Post
It is impossible to avoid paying sales tax on a car. It is not BMW's issue.
No one is avoiding the sales tax.

NY State is investigating because of the information from US Custom.
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  #18  
Old 09-22-2016, 01:07 PM
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Quote:
Originally Posted by mason View Post
No one is avoiding the sales tax.

NY State is investigating because of the information from US Custom.
First off, just FYI, it's US Customs, with an s.

As your situation is not unique, I have a strong hunch as to what's really going on here: Some (recently-hired?) low- to mid-level functionary(ies) up in Albany are looking to make an impression and/or go after presumed "easy targets" who are believed to owe back taxes. Said individual(s) are trolling the Customs records, spotting ED cars "imported" by individuals (yes, ED cars are individually inspected & cleared through Customs, separate from the rest of the carrier's cargo) and concluding NYS taxes are owed on these goods that they mistakenly believe were purchased abroad.

In other words, you've got someone up in Albany who is wholly ignorant of how the ED program works--hell, they might be ignorant of the entire concept--and believes it's somehow possible to get these cars registered here without paying sales tax.

Send them a copy of your purchase invoice, and the receipt showing that you paid NYS tax on that amount at registration, and they'll shut up.

I'd almost bet a mortgage payment that BMW is in no way involved here. They have imported thousands of ED cars to the US; I'm fairly confident they know how to fill out the paperwork.

This whole affair sounds like a bureaucrat fishing for revenue. They will likely keep sending these letters until someone finds the person(s) responsible and educates them.
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  #19  
Old 09-23-2016, 06:13 PM
frank325 frank325 is offline
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Well, that's funny. I just posted about this before reading yours. Kentucky sent me the same crap. I emailed Adrian and he just said to forget about it, it's kind of normal. I plan on just calling the numerous on the letter Monday to say Go Away.
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  #20  
Old 09-25-2016, 05:05 PM
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Quote:
Originally Posted by mason View Post
No one is avoiding the sales tax.

NY State is investigating because of the information from US Custom.
What I do not understand is, since you are a New York resident, you should have paid sales tax when you first registered the car. When a car is registered for the first time there is a requiremsent that the tax must be paid, if not paid prior to the registration
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  #21  
Old 09-26-2016, 06:58 AM
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It is impossible to avoid paying sales tax on a car. It is not BMW's issue.
Well, not impossible if you register it in a state with no sales tax . . .
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  #22  
Old 10-02-2016, 08:24 PM
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What I do not understand is, since you are a New York resident, you should have paid sales tax when you first registered the car. When a car is registered for the first time there is a requiremsent that the tax must be paid, if not paid prior to the registration
This is the Nth time I'm saying tax was paid. But, like other fester says either someone in Albany only use import info for fishing expedition, or someone at the port didn't do a good job clearing custom. When a product arrives, they have to enter a numeric code to identify the product. There are literally millions of them. If someone is off by 1 digit, it can translate into something very different. (I learned this because I recently imported an extra wide format printer from Italy)

Anyway, I mailed the lease contract to the lady in Albany. It is close 2 weeks now, I will see what happen.
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Old 10-08-2016, 12:20 AM
the J-Man the J-Man is offline
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The fact that you paid sales tax to a dealer outside of NY might not fix your sales tax problems with NY. Most likely, NY will give you credit for the sales tax paid in the other state, but you will still owe any differentials in the tax rates, if any. However, NY could also take the approach that you shouldn't have paid sales tax in the other state, and they can demand it all from you. At that point, you would need to get the tax back from the out of state dealer, and they would need to get it back from the state. It wouldn't surprise me if NY took the more aggressive approach with you. They are a state that is notoriously difficult to deal with in the world of sales tax. If you don't get it resolved, feel free to PM me and I'll see if I can help. I do sales tax consulting for a living.
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Old 10-08-2016, 09:24 AM
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[QUOTE=mason;9847469]No, they are looking for sales tax. It is straight from Albany so it is not import duty. I called Albany directly after the disappointing phone call from BMW. The lady asked me to send her copy of the transaction, which I'm faxing now.

Again, I understand mistake happen. I'm ok with that. I would expect BMW to say to me: Give us the letter and we will take care for you. But it is not the case here.

My worker compensation insurance company made a mistake few years back resulting me getting a fine from NYS ($5000). I called them and they said to "just send us that letter and we will take care everything from here.". I don't see BMW doing that.[/QUOTE

Did you solve the problem meanwhile?

Last edited by Markus_OS; 10-08-2016 at 09:29 AM.
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  #25  
Old 10-12-2016, 11:05 AM
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The fact that you paid sales tax to a dealer outside of NY might not fix your sales tax problems with NY. Most likely, NY will give you credit for the sales tax paid in the other state, but you will still owe any differentials in the tax rates, if any. However, NY could also take the approach that you shouldn't have paid sales tax in the other state, and they can demand it all from you. At that point, you would need to get the tax back from the out of state dealer, and they would need to get it back from the state. It wouldn't surprise me if NY took the more aggressive approach with you. They are a state that is notoriously difficult to deal with in the world of sales tax. If you don't get it resolved, feel free to PM me and I'll see if I can help. I do sales tax consulting for a living.
They are not looking for differential in sales tax because I paid NYC sales tax.

I spoke with the lady in Albany. They really think I imported a car myself directly from Germany. They threw all the US Custom inform at me. The good thing is that VIN on the lease contract matches the info they have. Thus, my lease contract should do the trick.

That goes back to my original point that it is not about if I paid tax at dealership or if I paid enough tax or if dealer sent tax payment to Albany.
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