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Luxury Tax

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Old Dec 26, 2002 | 04:03 PM
  #1  
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Question Luxury Tax

Can anyone definitively give me a solution on this luxury tax issue?

http://www.irs.gov/formspubs/page/0,,id%3D80204,00.html'

Per the IRS publication it seems the GX is not required to pay the tax.

But, I just bought my GX and had to pay the tax. But from the posts on this site, perhaps I should not have had to.

Please advise what your solutions have been and what I can do as proof to either obtain the lux tax back from the dealer OR back from the IRS.

Thanks a lot.

It great there is a lexus forum for these kinds of issues.


Rhino
Old Dec 26, 2002 | 07:10 PM
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Default I didn't pay

I picked mine up on Tues 12/24 and didn't pay luxury tax...

Perhaps your dealer can talk to mine: Difeo Lexus (732-271-4000)

Good luck.
Old Dec 26, 2002 | 07:57 PM
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LexFather
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I think it is fazed out for 2003 and up cars.
Old Dec 26, 2002 | 09:22 PM
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Default Not here too!

Just picked up mine too in N. California

Did not have to pay the Luxury Tax.
Old Dec 27, 2002 | 01:55 PM
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Cool Where in CA?

D4SSWME Where in N. California?

I bought mine in the Bay Area and they charged me lux tax. It would be great for them to call another N. Cali dealer and get the real scoop.

Thanks a lot for the replies.


Rhino
Old Dec 27, 2002 | 03:09 PM
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Default Santa Clara, CA.

while I was at the financing department, the lady told me outright that the GX did not have the Luxury Tax.

Call StevensCreek Lexus.
Old Dec 27, 2002 | 03:50 PM
  #7  
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Default Stevens Creek!?? This is getting interesting

D4SSWME,

Thanks for your help. I really appreciate it.

That is incredible. I bought mine at Stevens Creek too! And they charged me lux tax. Go figure.

I have a call to make. (even though I have emailed the finance director twice!)

Can you give me some insight into who you talked to? It would be very helpful.

Its funny how Stevens Creek operates. Can you say clueless?

Thanks again.

Rhino
Old Dec 27, 2002 | 04:45 PM
  #8  
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Default Rhino, here you go

Jeanne Arbacauskas-Financial Services Manager
Direct (408)553-4528
Old Dec 27, 2002 | 05:42 PM
  #9  
LexFather
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Damn, that is unacceptable IMO.
Old Dec 27, 2002 | 06:44 PM
  #10  
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Default Update

Per the finance director they are researching whether the lux tax is valid or not.

Which is strange, if they have not charged it on so many other purchasors. I bought mine on Dec 20th.

D4SSWME when did you buy it?

I think the finance dept is a bit clueless to say the least.

I would hope they were a bit more on top of things.

I dont think they understand that Lexus purchasors expect perfection from their cars AND their dealership.

Rhino
Old Dec 27, 2002 | 08:50 PM
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Default day after X'Mas

Rhino, just look for Jeanne

she will most probably be able to help you since she was the one who mentioned no luxury tax to me during my contract signing.

what color is your GX? what options does yours have?
Old Dec 27, 2002 | 09:36 PM
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Default Thanks

Thanks for all of your input.

I purchased a blk onynx with charcoal interior with Levinson, Link and 3rd row seats. It looks, feels, drives very powerfully.

Its is incredible. I love the SUV. Most of all I think its incredibly fun to drive. I took it on a high speed run the other day and was going at a really good clip, it felt as solid as my 5 series and CLK and as luxurious as my relatives LS.

Very much worth all of its accolades. On top of all of this I think the diff in price (about $10K) from a comparably equipped 4runner is worth it. I think this is the BEST Lexus on the road today.

Cheers

Rhino
Old Dec 27, 2002 | 11:08 PM
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Default

according to my F&I department, the GX DOES needs to pay luxury tax. also i heard somebody mentioned that the GX is heavier than 6000 pounds but the truth is it is only 4875 pounds.

let me know if you still have any more questions:

gtsang@sflexus.com
Old Jan 6, 2003 | 11:24 AM
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Default

Originally posted by genearch


It will be a moot point in a few days, but your finance dept is wrong. Simple as that. The IRS states that vehicles with a GVWR of less than 6,000 lbs are subject to the tax. While the GX weighs 4800 and change, it's the GVWR that counts and GVWR is the vehicle weight + The maximum suggested load, so the GX comes in at a GVWR of 6,100. Look in the drivers side door jam.

Here's what the IRS says:

"Passenger vehicles. Generally, the tax applies if the passenger vehicle has an unloaded weight of 6,000 pounds or less. However, the tax applies to a truck or van only if it has a maximum loaded weight of 6,000 pounds or less. The tax applies to limousines regardless of their weight."

The key there is loaded
Loaded = GVWR which = No Luxury tax. I spoke with two local dealers and they both agreed. I wonder how many dealers have made this mistake?

Also, greater than 6,000 GVWR qualifies for the Section 179 deduction. (see the other threads here for more info on that)
Does anyone here has taken advantage Section 179 for the GX470? Does this only apply to buy or one can lease and still do accelerated depreciation of $24K + 1st year 0f (20% each year over 5 years)? I will still stop by Lexus stealership to check it out. If anyone has gone through the lease route and applied the light truck SUV accelerated depreciation full on its first year, I would like to know the details.
Old Jan 6, 2003 | 10:27 PM
  #15  
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Default

I also didn't pay luxury tax when I picked up mine.
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