11-02-2022, 12:36 AM | #1 |
Drives: 2021 A10 ZLE Join Date: Dec 2021
Location: Brooklyn
Posts: 40
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Is my dealer pocketing my state sales tax?
So, long story sort of short:
Recently purchased a used 2021 ZLE out of state in Indiana. After negotiating, I agreed to pay 82k after taxes and fees. The dealer asked for my exact zip code (NY) where sales tax is 8.875%. The original buyer’s order lists the state sales tax at NY value. When I went to finalize my permanent license plates at the DMV, I had to pay an extra 3k+ in state taxes. The 2nd buyer’s order provided listed the sales tax at half of what the original agreement and the rest was added to “additional fees”. I’ve attached pictures of the original buyer’s order (provided to the bank for financing) and the secondary agreement provided to the DMV. I’m almost sure they are swindling me, but wanted to get some insight on what actions I should take to get my money back.
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2019 GKK A10 2SS (totaled 10/20)
2023 GKK A10 ZLE 1st order placed 09/2021 - status 1100 (cancelled) 2nd order placed 05/2022 - status 1100 (cancelled) 2021 GKK A10 ZLE purchased 09/2022 |
11-02-2022, 07:34 AM | #2 |
Drives: 23 ZL1 A10 Rapid Blue Join Date: Aug 2020
Location: MO
Posts: 1,992
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That is definitely suspicious. When I bought my car out of state we had a little problem in getting the correct tax rate and I've had that problem before with another dealer in the past. We ended up using Beacon(?) to title it out of state and got the correct tax amount and I paid with two checks, one for the principal from my bank and a second check that I paid that TTL with.
$3K in other fees...wow |
11-02-2022, 09:26 AM | #3 |
Drives: 2023 CT5 Blackwing Join Date: Sep 2016
Location: Orlando
Posts: 1,619
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Maybe...is not a particularly helpful answer. I purchased a Camaro from New York and had it shipped to Colorado. About a month after car arrived and all the paperwork had cleared, the NY dealer sent me a check for the difference in taxes/fees I had overpaid. Perhaps this dealer will do the same?
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11-02-2022, 09:47 AM | #4 |
Drives: 23 LT1/22 Colorado TB/69 Chevelle Join Date: Jun 2006
Location: Greenville, Tx
Posts: 4,970
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Sure looks like it. If they never sent that extra $3,763 to your state DMV then they definitely pocketed it. First, I'd find out how much they actually sent to your local DMV. If they didn't pay the full amount from the first buyer's order, I'd hit them up about it and ask them to send it to you since you already paid the DMV for the difference.
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11-02-2022, 10:50 AM | #5 |
Drives: Camaro 2SS, Jeep Gladiator Willys Join Date: Dec 2021
Location: NC
Posts: 81
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I bought mine out of state and the only amount I gave that dealer was MSRP in a check. Once I got to my local tag office I paid them the sales tax. Easiest purchase I ever made at a dealership.
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11-02-2022, 05:54 PM | #6 |
Drives: Chevy ss sedan, 22 ZL1 vert Join Date: Jul 2021
Location: Upstate NY
Posts: 88
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Need to get your money back from dealer, if you allready paid nys dmv that is finalized, if you still on temp tag waiting to fix then have dealer send you correct paperwork showing sales tax collected not fees
Either dealer did knowingly or made mistake. I have bought several cars out of state and brought back to ny and some know how to do things some dont https://www.tax.ny.gov/pubs_and_bull...eciprocity.htm https://www.in.gov/dor/files/sib28s.pdf NH took full tax amount paid nothing in ny Ohio only paid there tax rate then paid difference when reg in ny TN took full amount and then cut us dealer check to pay ny when gpt back to ny |
11-02-2022, 06:33 PM | #7 |
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Drives: 21 ZL1 Join Date: Feb 2022
Location: South East
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Bought my car in ATL and I live in FL. They collected taxes and tag and so on. Then they pay it to a third party title/tag company that does all the out of state paperwork. Thats probably what will happen. Then if there is an overage, it will be sent back to the dealer then they will cut you a check back. I got $450ish back because the dealer over collected on me. They did not hesitate to send it back. Nice surprise.
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11-02-2022, 06:40 PM | #8 | |
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Location: Houston
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Quote:
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11-03-2022, 06:38 AM | #9 | |
Drives: 23 ZL1 A10 Rapid Blue Join Date: Aug 2020
Location: MO
Posts: 1,992
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11-03-2022, 10:15 AM | #10 | |
Drives: 2021 A10 ZLE Join Date: Dec 2021
Location: Brooklyn
Posts: 40
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Quote:
We did receive a check from the dealership for just slightly less than the 3,763. The original agreement was to collect taxes to pay my state (NY). BUT, apparently Indiana is a nonreciprocal tax state, which the dealer was “unaware” of, so they adjusted the tax amount on the buyer’s order without notifying me. The $3,009 taxes on the adjusted BO went to Indiana state, then the refunded check amount of $3,728 was used to pay NY state, but I still owed over 3k on top of that to NY. I’ve basically paid $10k just in taxes on this car. If I had known beforehand that I would be paying an extra $3k I would’ve rethought going through with the purchase.
__________________
2019 GKK A10 2SS (totaled 10/20)
2023 GKK A10 ZLE 1st order placed 09/2021 - status 1100 (cancelled) 2nd order placed 05/2022 - status 1100 (cancelled) 2021 GKK A10 ZLE purchased 09/2022 |
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11-03-2022, 11:52 AM | #11 | |
Drives: 2021 Shadow Gray 1LS Join Date: Oct 2011
Location: Streetsboro Ohio
Posts: 1,371
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Quote:
When I was shopping for mine, Indiana dealers were sort of a mixed bag when it came to sales tax and add on fees . And dealers that didn't want to sell out of state . |
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11-03-2022, 05:30 PM | #12 |
Drives: Chevy ss sedan, 22 ZL1 vert Join Date: Jul 2021
Location: Upstate NY
Posts: 88
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You provided bill of sale showing sales tax paid in Indiana with ny paperwork, proof of paying 3009 all ready? With proof and forms should have only had to pay the difference
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11-08-2022, 12:49 PM | #13 |
Drives: '22 Camaro 2SS/1LE Join Date: Nov 2021
Location: North Jersey
Posts: 161
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Indiana is not a good state to buy when you live out of state. Unfortunately you're paying both states sales tax. Being in the business I try to help with these questions but haven't dealt w/ IN. A quick Google search brought up some information though.
https://www.in.gov/dor/files/sib28s.pdf https://www.in.gov/dor/files/reference/sib84.pdf It looks like IN is only supposed to charge a NY customer 4% (just the state tax, not your county tax) to send to IN and your regular 8.875 to NY. (I think that's what I'm getting out of this link... ) https://www.in.gov/dor/business-tax/dealer-information/ Be sure to present the taxes paid to your accountant at tax time as they can be used as a deduction. Edited bc I looked at more numbers... that 3009.10 is the 4% they need to send to IN. So it looks like they did things right. It's just unfortunate Uncle Sam is money hungry.
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11-13-2022, 11:56 AM | #14 | |
Drives: 2021 A10 ZLE Join Date: Dec 2021
Location: Brooklyn
Posts: 40
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Quote:
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2019 GKK A10 2SS (totaled 10/20)
2023 GKK A10 ZLE 1st order placed 09/2021 - status 1100 (cancelled) 2nd order placed 05/2022 - status 1100 (cancelled) 2021 GKK A10 ZLE purchased 09/2022 |
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