Luxury Tax
11-03-2002, 09:11 PM
#1
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Luxury Tax
Does any one know if the 'luxury' tax is going away any time soon?
I remember reading some where that it's going to end in 2003.
Any thoughts?
Thank you...
I remember reading some where that it's going to end in 2003.
Any thoughts?
Thank you...
11-04-2002, 10:18 AM
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January 1...it's all over.
"The auto luxury tax was originally a 10% tax on the retail price of autos above $30,000. In 1993, Congress repealed luxury taxes on boats, planes, jewelry and furs, but not on autos. Rather than repeal the tax on autos, Congress indexed its threshold to account for inflation.
As part of an industry-wide working group, AIADA successfully lobbied Congress to begin phasing out this tax on America's small business auto dealers. On August 28, 1996 the tax rate decreased from 10% to 9%. It rate will continue to decrease by 1% each year until January 1, 2003 when the tax will expire. As of January 1, 2002, the luxury tax is calculated at 3% of the amount of the selling price in excess of $40,000."
"The auto luxury tax was originally a 10% tax on the retail price of autos above $30,000. In 1993, Congress repealed luxury taxes on boats, planes, jewelry and furs, but not on autos. Rather than repeal the tax on autos, Congress indexed its threshold to account for inflation.
As part of an industry-wide working group, AIADA successfully lobbied Congress to begin phasing out this tax on America's small business auto dealers. On August 28, 1996 the tax rate decreased from 10% to 9%. It rate will continue to decrease by 1% each year until January 1, 2003 when the tax will expire. As of January 1, 2002, the luxury tax is calculated at 3% of the amount of the selling price in excess of $40,000."
