|
|
|
|
September 30, 2009 - Cash for Clunkers Taxable?There is misinformation on the Government's "Cash for Clunkers" program or the CARS program. Many rumors are spreading that the people who took advantage of the "Cash for Clunkers" program this past summer will have to pay income tax on the $3,500 or $4,500 they received. This is False! The CARS website available at http://www.cars.gov expressly provides that the credit is not income for the consumer for Federal purposes. However the question is whether the consumer must pay State or Local sales tax on the amount of the CARS program? This depends on the sales tax law of each State or Locality. Consumers should review the law of their respective states or consult with their tax advisor to the answer to this question. At this moment, the following are states that charge sales tax and those that don't charge sales tax: States that do charge state tax:
State that do not charge state tax:
MISSOURIMissouri consumers who participated in the federal "Cash for Clunkers" program this summer could face state fines. The state Department of Revenue said some customers left dealers' parking lots without the paperwork needed to register and title their new vehicles. If they don't register the vehicles within 30 days, they could be fined $25 per month, or up to $200. The four-week federal program ended in late August.
|
Use our
Information Request Form for more information or a quote on any of our
products and services.
|
