N
NE-bluebird
UPDATE EMAIL ADDRESS
The auto luxury tax was a 10% tax on the retail price of cars over $30,000. In 1993, Congress repealed luxury taxes on boats, planes, jewelry and furs, but not on cars. Rather than repeal the tax on autos, Congress indexed its threshold to account for inflation.
As part of an industry-wide working group, AIADA successfully lobbied Congress to begin phasing out this tax on America's small business auto dealers. On August 28, 1996 the tax rate decreased from 10% to 9%. It rate will continue to decrease by 1% each year until January 1, 2003 when the tax will expire. As of January 1, 2001, the luxury tax is calculated at 4% of the amount of the selling price in excess of $38,000.
39,795 - 38,000 = 1,795 X .04 = 71.80
origional tax would have been:
9,795 X .1 = 979.5, tax now 907.70 lower, pays for interior upgrade
As part of an industry-wide working group, AIADA successfully lobbied Congress to begin phasing out this tax on America's small business auto dealers. On August 28, 1996 the tax rate decreased from 10% to 9%. It rate will continue to decrease by 1% each year until January 1, 2003 when the tax will expire. As of January 1, 2001, the luxury tax is calculated at 4% of the amount of the selling price in excess of $38,000.
39,795 - 38,000 = 1,795 X .04 = 71.80
origional tax would have been:
9,795 X .1 = 979.5, tax now 907.70 lower, pays for interior upgrade