Dumb question: Can someone explain to me the taxes that apply to a $40,000 S4?
#1
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I'm getting an S4 in about a week and live in Michigan. Our standard sales tax is 6%, but I understand that there is a luxuary tax involved. At what point does it apply, and if possible, at what rate?
Let's say the car is $40,000 even.
Is it the 1st 36,000 subjected to 6%, and then the remaining $4,000 at 10%?
Thanks for your help in this matter, I know is easy for most, but I've never bought a car at this price tag before.
Patrick B.
Let's say the car is $40,000 even.
Is it the 1st 36,000 subjected to 6%, and then the remaining $4,000 at 10%?
Thanks for your help in this matter, I know is easy for most, but I've never bought a car at this price tag before.
Patrick B.
#3
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The luxury tax used to be about what you stated (~4% over 35 or 36K). But, it is now being bumped to only apply above a higher dollar amount. I think it now starts at 38.5 or higher.
RR
RR
#4
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... This may be state-specific, but in AZ you only pay tax on the difference in value between your trade in and the purchase price of the new vehicle. So, if you were being raped ... uh, I mean ... trading in a car valued (price dealer is offering) at $25k against the $40k purchase price on the S4, you'd only pay 6% tax on the $15k difference (40-25=15). However, you would still pay lux tax on the amount over $36k regardless.<p><a href="http://registry.audiworld.com/audi/registry/details.asp?car=909"><img SRC="http://www.planet42.net/images/sig_pic.gif" ALT="Rob O" BORDER=0></a>
#6
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I don't know exact details, but they are raising the $ hurdle and lowering the % each year until it goes away. At least that is what I have been told. It is only a few hundred dollars on a car in this range.<p>2001 Imola S4 (expect in Aug/Sept)
Sport Package w/ Silver Alcantara
6 Speed
Premium Package
Bose
Sport Package w/ Silver Alcantara
6 Speed
Premium Package
Bose
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