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Old 10-30-2012, 11:14 AM
 
476 posts, read 416,426 times
Reputation: 82

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A month ago, I purchased my first vehicle in this state, and I was puzzled when the dealer gave me a check for the sales tax amount in my paperwork. I learned that you actually have to go down to the revenue office and give them the check. I also learned that you have to pay an additional CITY sales tax.

My sales tax was originally $645 on my purchase, but I stupidly let the dealer talk me into purchasing an extended warranty which bumped up the sales tax amount to $805. I was out an additionall $117 for registration and city taxes. And not counting the personal property tax. Too many freaking taxes here!!

I called the dealer and after much hassle, got the warranty canceled and refunded. I was shocked to find out that I would not get any credit back for the extra sales tax I was charged on the amount. He said that was given to the revenue office and they don't give refunds. I balked, and he said, "sorry I don't make the laws"

So I paid $150 tax for a product I don't have. Can someone explain to me how this is right? It feels like the government is stealing from me. If I return an item to the store, I get a full refund including the sales tax, not the pre-tax total. Why is this any different? What if I wanted to return the car? I don't get a cent back from the sales tax?
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Old 10-30-2012, 01:50 PM
 
Location: The Great State of Arkansas
5,981 posts, read 16,739,247 times
Reputation: 7618
Your best bet is just to go to Revenue and discuss it with them. Why did you have to pay personal property tax, which is county, at the time of licensing with the state? Usually you assess the vehicle and are billed the assessment the year after by your county of residence (or so it used to be).

Was the check for $645 payable to Revenue? Or did you give the dealer a check for $160 for the sales tax on the extended warranty and he wrote the whole check? If that's the case, then if there is a refund (and I don't know that there is, just sayin'), then it would go back to the party who paid it, in this case the dealer.

I could be all wrong on my ideas - been a long time since I bought a new car :-)
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Old 10-30-2012, 10:40 PM
 
Location: Hot Springs, Arkansas
389 posts, read 1,064,840 times
Reputation: 456
My dealer did the same when we recently purchased a new car. And I had to pay the additional local taxes. But I never buy the extended warranties as they are largely a rip-off.
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Old 10-31-2012, 07:33 AM
 
41,397 posts, read 25,653,808 times
Reputation: 13355
Quote:
Originally Posted by Sam I Am View Post
Your best bet is just to go to Revenue and discuss it with them. Why did you have to pay personal property tax, which is county, at the time of licensing with the state? Usually you assess the vehicle and are billed the assessment the year after by your county of residence (or so it used to be).

Was the check for $645 payable to Revenue? Or did you give the dealer a check for $160 for the sales tax on the extended warranty and he wrote the whole check? If that's the case, then if there is a refund (and I don't know that there is, just sayin'), then it would go back to the party who paid it, in this case the dealer.

I could be all wrong on my ideas - been a long time since I bought a new car :-)
It's not property tax, it's sales tax that he had to pay. And since sales tax on vehicles is paid at the revenue office, his only option is to try to get the revenue office to reimburse him. If he has the paperwork from the dealer showing the credit for the cancelled warranty, then he can take that to the revenue office and tell them that the price of the car effectively has changed, and try to get them to change the information in the computer, so that he gets credit for the overcharged sales tax. However, it's unlikely the revenue office will cut him a check, since the sales tax monies are actually the property of the state. But he may be able to get a credit. If the revenue office is not cooperative, he can go to the state's website, and contact the State Treasurer's office to explain his problem. They can explain his options and whether he can get reimbursed or not.
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Old 10-31-2012, 08:25 AM
 
Location: The Great State of Arkansas
5,981 posts, read 16,739,247 times
Reputation: 7618
Quote:
Originally Posted by DC at the Ridge View Post
It's not property tax, it's sales tax that he had to pay.
Quote:
Originally Posted by TWD39 View Post
My sales tax was originally $645 on my purchase, but I stupidly let the dealer talk me into purchasing an extended warranty which bumped up the sales tax amount to $805. I was out an additionall $117 for registration and city taxes. And not counting the personal property tax.
Sorry, my misunderstanding based on his statement above...guess I read it wrong. That's why I was asking why he had to pay property tax; I thought he meant at the point of registration.
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Old 11-02-2012, 10:10 AM
 
476 posts, read 416,426 times
Reputation: 82
Looks like I certainly can get a refund! I called Department of Finance and Adminstration. I was transferred 3 times, but finally got in touch with tax refunds dept. I just need to fill out some paperwork to get the refund.

This makes the 3rd time this dealer (Landers Toyota) has lied to me. One of their lies was that they had the lowest doc fee around, and I would be paying $400 doc fee if I bought a Toyota in Texas. I'll never do business with them again, that's for sure.
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