Thiebear Posted August 28, 2009 Share Posted August 28, 2009 http://www.keloland.com/NewsDetail6162.cfm?Id=0,89084 The Cash For Clunkers program is adding to the activity at treasurers' offices all around South Dakota. First, people were asking for proof of ownership, so they could show they owned their vehicle for a full year, allowing them to cash it in. Now, they'll be returning to register their new vehicle. And when they do, new owners need to bring every bit of paperwork provided to them by their dealer. "That means they need their title, their damage disclosure, their bill of sale and the dealers have 30 days to get that to them," Minnehaha County Treasurer Pam Nelson said. But many of those cashing in on the clunkers program are surprised when they get to the treasurer's office windows. That's because the government's rebate of up to $4500 dollars for every clunker is taxable. "They didn't realize that would be taxable. A lot of people don't realize that. So they're not happy and kind of surprised when they find that out," Nelson said. For now, the biggest impact of the program hasn't hit this office yet, as most of the paperwork is still in the hands of the dealers. But Nelson expects to see move activity in her office in the next month. "I'm anxious to see what it's going to be like. I have no idea how many people we're going to see. Hopefully the dealers can process their paperwork in 30 days," Nelson said. And that's when the line at this office will give some indication of how many cars the government program moved off of local lots. Nelson adds that if you did recently purchase a vehicle, ensure your dealer gets you the paperwork in time because if they don't you could pay extra interest and penalties. It should have been said "loudly" upfront. wonder what the cost is? Edit: 250 > 900? Link to comment Share on other sites More sharing options...
Thiebear Posted August 28, 2009 Author Share Posted August 28, 2009 http://www.baltimoresun.com/business/money/bal-bz.ambrose04aug04,0,2206605.story apparently some states tax it also. As it turns out, each state determines whether to tax the clunker money. Pennsylvania doesn't, for example, but Maryland applies its 6 percent excise tax to the incentive. "We treat that $4,500 as a down payment toward his car. We still tax the total value of the car," says Caryn Coyle, a spokeswoman with the Maryland Motor Vehicle Administration, which collects the excise tax. Link to comment Share on other sites More sharing options...
The Evil Genius Posted August 28, 2009 Share Posted August 28, 2009 Just like short selling your house. In a lot of cases, the forgiven debt is counted as income for tax purposes. Link to comment Share on other sites More sharing options...
Tulane Skins Fan Posted August 28, 2009 Share Posted August 28, 2009 Those people are stupid then. And whiny. Link to comment Share on other sites More sharing options...
81artmonk Posted August 28, 2009 Share Posted August 28, 2009 This made me laugh. People who thought this was a wonderful idea are now rethinking that when thier $4500 shrinks to $2000. People don't realize that when it comes to the govt nothing is free!! Link to comment Share on other sites More sharing options...
rebornempowered Posted August 28, 2009 Share Posted August 28, 2009 Never thought I would see a link from one of my hometown news stations on ES. Wow. Link to comment Share on other sites More sharing options...
stevenaa Posted August 28, 2009 Share Posted August 28, 2009 Anyone ever bought a car and not had to pay tax on the full value? People are stoooopidddd. Link to comment Share on other sites More sharing options...
NavyDave Posted August 28, 2009 Share Posted August 28, 2009 I thought I pointed this out to those trying to say this was a great idea a month ago. But the young, naive and uninformed does need to have this pointed out before they turn in a perfectly fine used car. Link to comment Share on other sites More sharing options...
AsburySkinsFan Posted August 28, 2009 Share Posted August 28, 2009 Anyone ever bought a car and not had to pay tax on the full value? People are stoooopidddd. No joke. Link to comment Share on other sites More sharing options...
SnyderShrugged Posted August 28, 2009 Share Posted August 28, 2009 Anyone ever bought a car and not had to pay tax on the full value? People are stoooopidddd. Ummm, sales tax is very different from an additional income tax. The "clunckerites" have to pay both. Link to comment Share on other sites More sharing options...
ACW Posted August 28, 2009 Share Posted August 28, 2009 I thought I pointed this out to those trying to say this was a great idea a month ago.But the young, naive and uninformed does need to have this pointed out before they turn in a perfectly fine used car. More ageism. You seem like a grumpy old ageist homophobe. Link to comment Share on other sites More sharing options...
MEANDWARF Posted August 28, 2009 Share Posted August 28, 2009 Wouldn't it be called Tax-free cash for clunkers. Always read the fine print. Link to comment Share on other sites More sharing options...
10fttall Posted August 28, 2009 Share Posted August 28, 2009 Ummm, sales tax is very different from an additional income tax. The "clunckerites" have to pay both. Where do you see that? Both news stories are talking about people paying sales tax on the car's full price. No one is taxing the money as income. In South Dakota, you pay the sales tax when you register the vehicle. The treasurer isn't assesing an on the spot INCOME TAX on the clunker money when issuing a registration. Link to comment Share on other sites More sharing options...
TimmySmith Posted August 29, 2009 Share Posted August 29, 2009 It's the last line in the top quote that makes no sense. If you are paying sales tax on the TOTAL sale, then what difference does it make if the dealer EVER submits an ounce of paperwork. Or it you ever bring anything but the bill of sale with you to get it registered. This person seems just a bit clueless. Link to comment Share on other sites More sharing options...
AsburySkinsFan Posted August 29, 2009 Share Posted August 29, 2009 Where do you see that? Both news stories are talking about people paying sales tax on the car's full price. No one is taxing the money as income. In South Dakota, you pay the sales tax when you register the vehicle. The treasurer isn't assesing an on the spot INCOME TAX on the clunker money when issuing a registration. It doesn't, its the same thing that every state that I've ever lived in does, they tax the full value of the car, because if they didn't then people would report that they sold each other cars for $1 and avoid the taxes. Link to comment Share on other sites More sharing options...
Tarpon75 Posted August 29, 2009 Share Posted August 29, 2009 Somewhat confusing,in most states you pay tax only on the difference figure on an automobile purchase.Heres an example,if you have a $20,000.00 car and you trade a 8,000.00 car you would only pay tax on the $12,000.00 portion.The $4500.00 is given for the trade-in so really shouldn't be taxable in states that don't collect tax on the trade in portion.There are some states such as Ohio however that charge sales tax on the entire selling price of the purchased vehicle rendering the $4500.00 taxable.South Dakota may be one of the few states that do charge tax on the total purchase amount.Another factor that might be considered in this situation is that in most states the dealer is required to register the car and collect the sales tax at time of transaction.In states where dealers register the cars the tax would be disclosed at point of sale and collected by the dealer at that time. Link to comment Share on other sites More sharing options...
Larry Posted August 29, 2009 Share Posted August 29, 2009 Ummm, sales tax is very different from an additional income tax. The "clunckerites" have to pay both. Uh, can you find a case of that? Link to comment Share on other sites More sharing options...
Recommended Posts
Archived
This topic is now archived and is closed to further replies.