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Corvette
General Corvette Discussion
More on luxury tax
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<blockquote data-quote="redpearl99" data-source="post: 333178" data-attributes="member: 9043"><p>I hate tax statutes. They are the most convoluted. The way I read it, the "improvement" provisions apply only to improvements made after the sale that originally triggered the luxury tax.</p><p></p><p>If you ask your dealership to add some modifications during PDI then the price of those mods will be included in the sales agreement. The luxury tax is payable on the total price in the agreement and not just the MSRP. The dealership is also liable for paying that tax to the government. </p><p></p><p>As stated, "in the event that improvements are made in connection with the sale of a subject vehicle, the calculation of the luxury tax payable on the sale of the subject vehicle would take into account the cost of the improvements." </p><p></p><p>These provisions are saying that tax will also "apply to <u>improvements</u> that <u>total at least $5,000</u> made <u>during the improvement period</u> of the subject vehicle as determined under paragraphs 29(1)(a) and 30(1)(a)." If you look at the statute, it defines the "improvement period" as lasting from one year after the initial sales agreement. </p><p></p><p>So if you want to try and get around this you could ask your dealer to sell you the car without the upgrades. Then you go back and ask the dealership to do the extra work and bill you separately. I suspect most dealers will say no. If they say yes then you are still liable for the additional luxury tax on the improvements. If you don't pay then you are a tax cheat.</p></blockquote><p></p>
[QUOTE="redpearl99, post: 333178, member: 9043"] I hate tax statutes. They are the most convoluted. The way I read it, the "improvement" provisions apply only to improvements made after the sale that originally triggered the luxury tax. If you ask your dealership to add some modifications during PDI then the price of those mods will be included in the sales agreement. The luxury tax is payable on the total price in the agreement and not just the MSRP. The dealership is also liable for paying that tax to the government. As stated, "in the event that improvements are made in connection with the sale of a subject vehicle, the calculation of the luxury tax payable on the sale of the subject vehicle would take into account the cost of the improvements." These provisions are saying that tax will also "apply to [U]improvements[/U] that [U]total at least $5,000[/U] made [U]during the improvement period[/U] of the subject vehicle as determined under paragraphs 29(1)(a) and 30(1)(a)." If you look at the statute, it defines the "improvement period" as lasting from one year after the initial sales agreement. So if you want to try and get around this you could ask your dealer to sell you the car without the upgrades. Then you go back and ask the dealership to do the extra work and bill you separately. I suspect most dealers will say no. If they say yes then you are still liable for the additional luxury tax on the improvements. If you don't pay then you are a tax cheat. [/QUOTE]
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General Corvette Discussion
More on luxury tax
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