[Z06] How does the luxury tax work?
Thread Starter
Melting Slicks
Joined: Dec 2001
Posts: 2,410
Likes: 0
From: Boulder CO.
How does the luxury tax work?
Hi, just a few questions, to help me understand this thing.
I'd just like to know if you have to pay for it at the delivery of the car, or is it something you have to deal with on April 15th?
Also, how do they calculate that, by percentage? If so, what percentage on the cost of the car?
And last, is it a one time deal, or do you have to pay it for as long as the car value is above of what the luxury tax is? :smash:
Thx-Goose. :)
I'd just like to know if you have to pay for it at the delivery of the car, or is it something you have to deal with on April 15th?
Also, how do they calculate that, by percentage? If so, what percentage on the cost of the car?
And last, is it a one time deal, or do you have to pay it for as long as the car value is above of what the luxury tax is? :smash:
Thx-Goose. :)
Melting Slicks
Joined: Jun 2001
Posts: 2,565
Likes: 2
From: Chicagoland Illinois
Re: How does the luxury tax work? (Wicked LT1)
You pay it once.
You pay it when you purchase a NEW car from a dealer.
I believe it is still on the amount over $38K.
If I remember correctly, 2001 it dropped to 4% of the amount over 38K.
(between 38K and how much you PAID for the car)
Check Ken Fichtner's section, I think he still talks about it somewhere in there.
[Modified by silversport, 2:53 PM 12/23/2001]
[Modified by silversport, 2:54 PM 12/23/2001]
[Modified by silversport, 2:55 PM 12/23/2001]
[Modified by silversport, 2:56 PM 12/23/2001]
You pay it when you purchase a NEW car from a dealer.
I believe it is still on the amount over $38K.
If I remember correctly, 2001 it dropped to 4% of the amount over 38K.
(between 38K and how much you PAID for the car)
Check Ken Fichtner's section, I think he still talks about it somewhere in there.
[Modified by silversport, 2:53 PM 12/23/2001]
[Modified by silversport, 2:54 PM 12/23/2001]
[Modified by silversport, 2:55 PM 12/23/2001]
[Modified by silversport, 2:56 PM 12/23/2001]
Instructor
Joined: Aug 2000
Posts: 219
Likes: 0
From: NorthEast Oh ohio
Re: How does the luxury tax work? (Wicked LT1)
For 2001 it is 4% over $38,000. In a example 48,000 purchase price you woulkd be $10,000 * .04% or $400.00 luxury tax. One more thing if you have a GM card and have a rebate that rebate is subtracted from the the purchase price. Example 2 $48,000 - $1,000 GM Card Rebate = $47,000 -$38,000 =$9,000 * .04% = $360.00.
I believe that in 2002 the luxury tax is dropped?
I hope this helps :seeya
I believe that in 2002 the luxury tax is dropped?
I hope this helps :seeya
Team Owner
Joined: Aug 2000
Posts: 24,109
Likes: 1,329
From: Spring Texas
Re: How does the luxury tax work? (Wicked LT1)
It's more money the government takes from you because you can afford to buy an "expensive" car and re-distributes it to the non-contributors.
Burning Brakes
Joined: Apr 2001
Posts: 860
Likes: 0
From: Austin TX
St. Jude Donor '14-'15
Re: How does the luxury tax work? (CP)
As indicated, this is a one time 4 % tax applied to new vehicles on the value of the car above $38,000. A used Z06 will not pay a luxury tax even if the price is more than the cut-off. This is a Federal tax. The tax trigger level has been increasing each year and the luxury tax will not apply at all in 2002. jerboa :)
Melting Slicks
Joined: Oct 2001
Posts: 2,073
Likes: 4
From: Official Misfit Cooler Owner
Cruise-In III Veteran
Cruise-In IV Veteran
Re: How does the luxury tax work? (pewter02)
I am sure Congress is already coming up with another wealth redistribution (tax) plan at the moment, since this one is almost over. Sure am glad I work so hard to make a good living. :smash:
[Modified by John's vette, 5:16 PM 12/25/2001]
[Modified by John's vette, 5:16 PM 12/25/2001]
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Racer
Joined: Aug 2001
Posts: 401
Likes: 22
From: SF CA
Re: How does the luxury tax work? (Wicked LT1)
here's all of the history and details: http://www.edmunds.com/advice/buying...5/article.html
Burning Brakes
Joined: Jul 2000
Posts: 963
Likes: 0
From: indianapolis IN
Re: How does the luxury tax work? (Zapper)
"Wealth redistribution plan" ????
Look again, it's a Republican in office !!
Seriously; if you have a GM Mastercard with rebates, make sure that they
subtract the card earnings before doing the Luxury Tax Calculations. There
are dealers on xxxx and other forums who treat it as cash down, and do not
reduce the luxury tax amount.
Look again, it's a Republican in office !!
Seriously; if you have a GM Mastercard with rebates, make sure that they
subtract the card earnings before doing the Luxury Tax Calculations. There
are dealers on xxxx and other forums who treat it as cash down, and do not
reduce the luxury tax amount.
