Help on CT sales tax

CT_LFC

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I am buying my JLUR from Criswell in MD and when getting their final invoice they are charging me 7.75% tax when in CT the sales tax is 6.35%. MSRP is $53,110 with sale price of $46,043, which is the stated "base price of vehicle" on the purchase order.

CT.gov states:
Private (Casual) Sales - The purchase of passenger vehicles and light duty trucks (1991 model year and newer) purchased from private owners is subject to 6.35% (or 7.75% for vehicles over $50,000) Connecticut Sales and Use Tax based on the NADA average trade-in value or bill of sale value (whichever is higher)

https://www.ct.gov/dmv/cwp/view.asp?a=814&q=245272

I am told, from taking to Patrick and Julius, that when they go to reg usa or whatever site it is called, that it asks for MSRP and that is what is basing the 7.75% on and not the 6.35%.

What should it really be? i am paying 1.4% extra tax based on a MSRP that i did not pay. This is a $650 difference, so significant enough for me to walk.

Does the DMV give you refunds if when i register it i only owe the 6.35%?

Thanks





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Impy5

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From what I've been told, its the sales price, at least that's what a Chevy dealer told me when we were buying my wife's Tahoe. Or if you are trading a vehicle in, its the sales price less the amount of the trade. Try contacting someone at the DMV (much easier said than done I know), and see if they can help.
 

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I am buying my JLUR from Criswell in MD and when getting their final invoice they are charging me 7.75% tax when in CT the sales tax is 6.35%. MSRP is $53,110 with sale price of $46,043, which is the stated "base price of vehicle" on the purchase order.

CT.gov states:
Private (Casual) Sales - The purchase of passenger vehicles and light duty trucks (1991 model year and newer) purchased from private owners is subject to 6.35% (or 7.75% for vehicles over $50,000) Connecticut Sales and Use Tax based on the NADA average trade-in value or bill of sale value (whichever is higher)

https://www.ct.gov/dmv/cwp/view.asp?a=814&q=245272

I am told, from taking to Patrick and Julius, that when they go to reg usa or whatever site it is called, that it asks for MSRP and that is what is basing the 7.75% on and not the 6.35%.

What should it really be? i am paying 1.4% extra tax based on a MSRP that i did not pay. This is a $650 difference, so significant enough for me to walk.

Does the DMV give you refunds if when i register it i only owe the 6.35%?

Thanks
I can't imagine them giving a refund. After all it is still a government agency. I know when I would but a vehicle from Indiana (I live in the border in Ohio) I pay the Ohio tax NOT Indiana. And it's on the actual price of the vehicle minus trade in and what have you. So, if you have a $35k vehicle plus a $10k trade in, you only finance and pay taxes on the remaining $25k. I don't know where they get this MSRP crap from but sounds like they are jacking you around. But, I'd call as the other person says and ask the DMV. I wouldn't sign anything until I am positive what I am paying.
 
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CT_LFC

CT_LFC

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I can't imagine them giving a refund. After all it is still a government agency. I know when I would but a vehicle from Indiana (I live in the border in Ohio) I pay the Ohio tax NOT Indiana. And it's on the actual price of the vehicle minus trade in and what have you. So, if you have a $35k vehicle plus a $10k trade in, you only finance and pay taxes on the remaining $25k. I don't know where they get this MSRP crap from but sounds like they are jacking you around. But, I'd call as the other person says and ask the DMV. I wouldn't sign anything until I am positive what I am paying.
I am on the "leave your # and we'll call you in approx. 50 minutes...." list....for about 2hrs :)

I really don't get it. I don't know what website they use, but it is whatever they use to register a vehicle and (apparently) assigns the tax rate based on the MSRP and not on the price i am paying for the car, which i think is BS. They are adamant they cannot give me an additional discount to offset the higher tax amount.

If the DMV, once i get a hold of them, is not willing to give me a refund, then i think i'm going to walk on the deal.
 

four low

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The Connecticut tax rate is listed for "Private Sales", is a dealer a private or commercial seller?
I take private to mean individual sales, not a business or commercial dealer sale.
Would that be a different tax rate, or are all sales "private"?
 

Instarand

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I am buying my JLUR from Criswell in MD and when getting their final invoice they are charging me 7.75% tax when in CT the sales tax is 6.35%. MSRP is $53,110 with sale price of $46,043, which is the stated "base price of vehicle" on the purchase order.

CT.gov states:
Private (Casual) Sales - The purchase of passenger vehicles and light duty trucks (1991 model year and newer) purchased from private owners is subject to 6.35% (or 7.75% for vehicles over $50,000) Connecticut Sales and Use Tax based on the NADA average trade-in value or bill of sale value (whichever is higher)

https://www.ct.gov/dmv/cwp/view.asp?a=814&q=245272

I am told, from taking to Patrick and Julius, that when they go to reg usa or whatever site it is called, that it asks for MSRP and that is what is basing the 7.75% on and not the 6.35%.

What should it really be? i am paying 1.4% extra tax based on a MSRP that i did not pay. This is a $650 difference, so significant enough for me to walk.

Does the DMV give you refunds if when i register it i only owe the 6.35%?

Thanks
Interesting. What is the total sale minus sales tax? Any dealer fees, add-on’s, debt roll over, etc?
 

OldGuyNewJeep

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I am on the "leave your # and we'll call you in approx. 50 minutes...." list....for about 2hrs :)

I really don't get it. I don't know what website they use, but it is whatever they use to register a vehicle and (apparently) assigns the tax rate based on the MSRP and not on the price i am paying for the car, which i think is BS. They are adamant they cannot give me an additional discount to offset the higher tax amount.

If the DMV, once i get a hold of them, is not willing to give me a refund, then i think i'm going to walk on the deal.
Sounds like a big pain in the ass. Call Mark at Fitzpatrick’s in Ansonia to see if he can offer a deal that you like. I had a great experience there (both sales and service).
 
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CT_LFC

CT_LFC

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The Connecticut tax rate is listed for "Private Sales", is a dealer a private or commercial seller?
I take private to mean individual sales, not a business or commercial dealer sale.
Would that be a different tax rate, or are all sales "private"?
Yes, that was my bad and copied/pasted the wrong section. For dealers it states:

Sales From Licensed Dealers - If the vehicle was purchased from a licensed dealer, the 6.35% (or 7.75% for vehicles over $50,000) sales and use tax is based on the purchase price. Full trade-in credit is allowed when computing the Connecticut Sales and Use tax, if the vehicle was purchased from a licensed dealer.

After talking to the DMV who confirmed the above statement i emailed my salesperson with the link and the statement pasted in the body of the email and asked him to make the adjustments so that the correct tax rate would be applied. 15 minutes later i got a call from him saying there was misunderstanding with the sales manager and resent me a new invoice with correct tax amount. He said at the time of pickup i will have to sign a statement saying if anything over 6.35% tax is owed at time of registration that i will have to cover it. I don't get why, but they require me to pay them the full amount and they in turn give me a check for the tax amount made out to the DMV.
 
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CT_LFC

CT_LFC

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Interesting. What is the total sale minus sales tax? Any dealer fees, add-on’s, debt roll over, etc?
Base price: $46,043
Dealer fee: $300
Freight Charge: N/A (part of the $46K)
Subtotal: $46,343
Sales Tax: $2,943
Tire Recycling Fee: $4 (que?)
Title Tax: $25
Registration Fee: $116
Security Interest: $10 (huh?)
Temporary Tags: $20
Electronic Registration Fee: $20
Deposit: ($1,000)
Unpaid Balance of Total Price: $48,481
 

Instarand

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Base price: $46,043
Dealer fee: $300
Freight Charge: N/A (part of the $46K)
Subtotal: $46,343
Sales Tax: $2,943
Tire Recycling Fee: $4 (que?)
Title Tax: $25
Registration Fee: $116
Security Interest: $10 (huh?)
Temporary Tags: $20
Electronic Registration Fee: $20
Deposit: ($1,000)
Unpaid Balance of Total Price: $48,481
Can you ask the dealer to re-run the deal? Unless I’m mistaken, this is a dealer error. 6.35% sales tax is appropriate here. The burden shouldn’t be on you to correct it.
 

Wanted33

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Yes, that was my bad and copied/pasted the wrong section. For dealers it states:

Sales From Licensed Dealers - If the vehicle was purchased from a licensed dealer, the 6.35% (or 7.75% for vehicles over $50,000) sales and use tax is based on the purchase price. Full trade-in credit is allowed when computing the Connecticut Sales and Use tax, if the vehicle was purchased from a licensed dealer.

After talking to the DMV who confirmed the above statement i emailed my salesperson with the link and the statement pasted in the body of the email and asked him to make the adjustments so that the correct tax rate would be applied. 15 minutes later i got a call from him saying there was misunderstanding with the sales manager and resent me a new invoice with correct tax amount. He said at the time of pickup i will have to sign a statement saying if anything over 6.35% tax is owed at time of registration that i will have to cover it. I don't get why, but they require me to pay them the full amount and they in turn give me a check for the tax amount made out to the DMV.
We just bought a Corvette from Criswell, and the sales tax for North Carolina was handled the same way. I'm guessing it has to do with the way State DMV's work. And I would bet that Maryland requires out of state sales to be handled in that manner. To get the tag and title here in NC you have to prove you payed the sales tax, and the best way to do it is take a check and hand it to them. DMV's are funny that way. :) Enjoy your new Jeep.
 
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CT_LFC

CT_LFC

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Can you ask the dealer to re-run the deal? Unless I’m mistaken, this is a dealer error. 6.35% sales tax is appropriate here. The burden shouldn’t be on you to correct it.
The attached breakdown is with the correct sales tax ($2,943). The original (incorrect) invoice had it at $3,591. I got on the phone with them and told them we had 2 options: A. they address the issue and charge me the correct amount, or B. I get my deposit back. I wasn't going to lose out on $640 just cuz...

Anyway, all is solved now and it was just an unpleasant moment and they made it right at the end.
 
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CT_LFC

CT_LFC

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One annoyance when dealing with a sales manager (i think), is that when i questioned the amount i got the "i sold 32 cars last month and have sold to CT residents multiple times, i know how it works". Well, you truly don't or we wouldn't have had this issue.
 

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