Luxury Tax Ends This Year

[tbird]

Well this problably won't really matter this year, but just in case, the luxury tax ends this year. It is calculated 3% of the amount of the selling price in excess of $40,000.

 

[tbird2003]

Originally posted by tbird:
Well this problably won't really matter this year, but just in case, the luxury tax ends this year. It is calculated 3% of the amount of the selling price in excess of $40,000.

I also heard about the expiration of the Luxury tax. Does is aply based on the sale date or the model year of the car. Example, Is a Model year 2003 T-bird that is sold in say December of 2002 charged the tax?


TBird2003
No bird yet! But got one on order.

 

[42 ford nut]

The tax is 3% of the selling price, in excess of $ 30,000, on all autos sold before Jan 1 2003. Selling price does not include shipping or sales tax. Ford will not start building the 2003s until Nov 18. It is doubtfull that you will have a chance to get your car before Jan 1, 2003

 

[Blue Heaven]

I think the previous post is correct, it is 3% of the amount over $40,000.00. I say this because my car was 40,040.00 and I know for a fact I paid $12.00 luxury tax (3% 0f $40.00).

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Blue Premium, Blue Top w/partial accent
02 Black Taurus SE

 

[tbird]

Originally posted by 42 ford nut:
The tax is 3% of the selling price, in excess of $ 30,000,

Sorry, but it is 40,000.00, not 30,000.00.



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Tbird

 

[LON O'CONNELL]

Actually it is neither $40,000 or $30,000 but rather any amount over $37,000. We paid MSRP of $39,795 and the luxury tax was $83.85 or 3% of $2,795.

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Yellow/Yellow Prem. 02 Bird w/full accent
1999 F150 Super Cab 4x4 Off Road
1998 Taurus SE Sport 24V

 

[mike02redbird]

When I ordered my car in July I ask the dealer about the luxury tax and he said it did not apply. I picked up my new car last Thursday and the sales agreement did not have any luxury tax listed and I didn’t pay any additional. MSRP was $40245.00 I got it for a thousand under MSRP no additional tax listed or paid.

mike02redbird
Red/Red/Full
27080

 

[tbird]

Originally posted by LON O'CONNELL:
Actually it is neither $40,000 or $30,000 but rather any amount over $37,000. We paid MSRP of $39,795 and the luxury tax was $83.85 or 3% of $2,795.

Acually, that is incorrect also. Maybe this will help clear things up.

Luxury Car Excise Tax
For 2002, the luxury auto excise tax applies to cars costing more than $40,000. The rate for 2002 is 3%.

For 2001, the luxury auto excise tax applies to cars costing more than $38,000. The rate for 2001 is 4%.

For 2000, the luxury auto excise tax applies to cars costing more than $38,000. The rate for 2000 is 5%.

For 1999, the luxury auto excise tax applies to cars costing more than $36,000. The rate for 1999 is 6%.

 

[tbird]

Originally posted by mike02redbird:
When I ordered my car in July I ask the dealer about the luxury tax and he said it did not apply.

The dealer was correct, you paid 39,245, and the tax only applies to a selling price of over 40k.



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Tbird

 

[saj]

We should have paid the luxury tax on our t-bird but since it wasn't part of the offer sheet I had signed, the dealership just paid it. It came to $60+ since we paid 42K plus licensing. What seemed odd to us is that they included the state license fee in the calculation.

Ford salesmen aren't used to worrying about it since it doesn't apply to trucks and SUV's.

The $40,000 number is what we were told for 2002.

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red/red/partial red