Sunset on Luxury Tax
09-29-02, 12:47 PM
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Sunset on Luxury Tax
According to an article in last weeks Wall Street Journal...
The Luxury Tax on passenger cars and other vehicles is set to expire at the end of 2002. The current tax rate is 3% on the purchase price over $40,000.
If the GX comes in at $55,000 thats 3% x $15,000 or about $450. Depending on timing of availability it may or may not be worthwhile to wait to take delivery until after Jan 1. I am #1 on my dealers list so I may have to decide to hold off until 1/1/03 (my current lease expires on 1/3/03 so its all working out).
The Journal thinks that this will give us some leverage since we want to wait until 2003 but many dealers will want to close out 2002 with strong sales. If they want us to "close the sale" in 2002 then they will have to make some type of accomodation.
The Luxury Tax on passenger cars and other vehicles is set to expire at the end of 2002. The current tax rate is 3% on the purchase price over $40,000.
If the GX comes in at $55,000 thats 3% x $15,000 or about $450. Depending on timing of availability it may or may not be worthwhile to wait to take delivery until after Jan 1. I am #1 on my dealers list so I may have to decide to hold off until 1/1/03 (my current lease expires on 1/3/03 so its all working out).
The Journal thinks that this will give us some leverage since we want to wait until 2003 but many dealers will want to close out 2002 with strong sales. If they want us to "close the sale" in 2002 then they will have to make some type of accomodation.
11-13-02, 12:17 PM
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Just learned that the weight of GX 470 is over 6000 GVWR. Which means it can be claimed under IRS section 179, in other words if you use it in your business you can deduct up to 26,000 in the first year.
Last edited by degeester; 11-13-02 at 03:26 PM.
11-13-02, 09:58 PM
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Degeester, I was told by my accountant that you can only expense $24,000, but that there is another Sept. 11th deduction that will allow you to expense another 30%. Check with your accountant to verify.
12-05-02, 12:08 AM
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Not so fast
According to my dealer, the Curb Weight of the GX is under 5000 lbs and therefore they WILL be collecting luxury tax until Dec 31! It comes out to about $400 for the fully loaded model.
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12-06-02, 08:19 PM
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Dont kill the messenger
Dont mean to harp on this but I was at the dealer today (Difeo, Bound Brook, NJ) to finalize the order and they are collecting the luxury tax on the GX.
I brought this thread with me to show him the Gross wt thing, etc. but they are adamant that they must collect the tax.
Obviously if anyone has anything resembling proof that this truck is exempt I would greatly appreciate it. The business manager has indicated that he would be only too happy to refund the money to me since it is obviously not something they enjoy collecting. The only info I have seen is the listed curb weight (~4650 lbs) and the exemption of Gross Wt > 6000 lbs. I have not seen anything to indicate that the "load" factor of 1350 lbs in print anywhere (although doing the math about the "seating for 7/8" claim tells the story unless you are hauling elves).
All help is appreciated.
I brought this thread with me to show him the Gross wt thing, etc. but they are adamant that they must collect the tax.
Obviously if anyone has anything resembling proof that this truck is exempt I would greatly appreciate it. The business manager has indicated that he would be only too happy to refund the money to me since it is obviously not something they enjoy collecting. The only info I have seen is the listed curb weight (~4650 lbs) and the exemption of Gross Wt > 6000 lbs. I have not seen anything to indicate that the "load" factor of 1350 lbs in print anywhere (although doing the math about the "seating for 7/8" claim tells the story unless you are hauling elves).
All help is appreciated.
12-09-02, 01:54 AM
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The dealership in Savannah GA said that they were going to charge me the luxury tax on the GX. But I haven't taken delivery yet, so we'll see.
Anyone got a Lexus dealership NOT to charge you luxury tax on a GX?
Anyone got a Lexus dealership NOT to charge you luxury tax on a GX?
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