Cash for Clunkers TAXED

Discussion in 'Economics' started by IanMacQuaide, Aug 28, 2009.

  1. You knew this was coming....right?

    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.

    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.,89084

    Get that last part? It's up to the BUYER to obtain all paperwork and pay the taxes due, or it's the BUYER who'll pay the penalties.
  2. nothing new there. they are treating it like a rebate. i live in south dakota. they have always taxed us that way. we dont have an income tax so they get you in other ways.
    i recently bought a new atv that had a rebate. i had to pay sales tax on the price before the rebate.
  3. Only in America
  4. nevadan


    Great program huh? Not only is the rebate taxable, normally the deal was based on MSRP so sales tax is figured from a higher amount than if the customer was able to dicker with his dealer.