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Loving my car.
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I recently heard that luxury tax was being done away with after this year or something? Anyone know the details?

I am moving in August and I'm going to get a new car instead of paying for the transport.. and I'd love to move up to a 330, the major problem with it being that the 330+PP+SP+NAV+Leather goes over that stupid $38k threshold.
 

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M Mad
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December 31, 2002 will be the end of the Luxury Tax.

It is actually being phased out now. It went down as of January 1, 2002. To be gone next year.
 

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exactly how much is luxury tax?

Exactly how much is the luxury tax and is $38k the cap? I heard it was $40k? Does it vary for state to state? Also, does it only include the price of the vehicle or tax and license when figuring out whether you need to pay this luxury tax or not?

thanks for any help guys :)

Jin
 

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Re: exactly how much is luxury tax?

Jinky206 said:
Exactly how much is the luxury tax and is $38k the cap? I heard it was $40k? Does it vary for state to state? Also, does it only include the price of the vehicle or tax and license when figuring out whether you need to pay this luxury tax or not?

thanks for any help guys :)

Jin
Luxury tax is now 3 percent....but wait, here's how it is calculated. There are only 2 things that matter 1) the price you agree to pay (no taxes, no title, no license, just the agreed upon price before fees), 2) the threshold ($38k). How to calculate...take #1 above and subtract #2...multiple by 0.03.

For example....figure you agree to pay $40k. ($40k - 38k) * 0.03 = $60.

Also the luxury tax is a FEDERAL tax. It does not vary by state. Also it only applies to NEW cars.

HTH
 

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bruce,

Thanks for the reply that cleared everything up. I was just worried that I might have to pay ~$3k for luxury tax or something. $60 sounds fine to me
 

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Jinky206 said:
bruce,

Thanks for the reply that cleared everything up. I was just worried that I might have to pay ~$3k for luxury tax or something. $60 sounds fine to me
In 98, I paid around $400 for my M roadster (I paid $1k under sticker, so around 41.5k....luxo tax is cheaper now. If the selling price is near 40k I wouldn't wait til next year to buy when there will be no tax.
 
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