Will new car tax break make any difference in Oregon?
The latest from our beloved IRS:
The Internal Revenue Service and Treasury Department today announced that a tax break for the purchase of new motor vehicles is available in states that do not have a state sales tax. Under the American Recovery and Reinvestment Act of 2009, taxpayers who buy a new motor vehicle this year are entitled to deduct [on their federal income tax returns -- JB] state or local sales or excise taxes paid on the purchase.Does Oregon even have any such fees or taxes? And if it does, are they much? Somebody out there in the car world, please advise.The IRS and Treasury have determined that purchases made in states without a sales tax — such as Alaska, Delaware, Hawaii, Montana, New Hampshire and Oregon — can also qualify for the deduction.
The IRS said today that taxpayers who purchase a new motor vehicle in states that do not have state sales taxes are entitled to deduct other fees or taxes imposed by the state or local government. The fees or taxes that qualify must be assessed on the purchase of the vehicle and must be based on the vehicle’s sales price or as a per unit fee. According to the IRS, Congress intended for these fees or taxes to qualify for this special tax deduction.
| Posted at 2:35 PM | Permalink |
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Comments (5)
License and Title Fees?
http://www.oregon.gov/ODOT/DMV/fees/vehicle.shtml
Posted by PMG | June 10, 2009 3:01 PM
That's around $300 for a regular car, right? So the federal tax benefit would be around $50 or $100?
Posted by Jack Bog | June 10, 2009 3:07 PM
If there ARE such fees in Oregon, now that you've drawn attention to them, you can bet they'll be tripled.
Posted by Michelle in Orygun | June 10, 2009 4:16 PM
Predictably, the savings are going to people who aren't hurting just as rewards for buying a hybrid do. If you can afford a new car, you can afford the fees.
When you look at the cost of a car, the purchase price, the insurance, repairs and maintenance, gas per gallon and taxes and other assorted fees it's a wonder there are still so many people able to drive. I think some are hanging on to old cars hoping they won't break down and now the feds are vilifying older less efficient models and talking about destroying them to keep them off the road. What's next? A fat fee or tax for the poor guy who can't afford to drive anything else?
These people aren't going to be jumping on any of the federal government's "buy a new car" incentive programs anytime soon.
You have to wonder how many people are in debt to support a car or how much money is coming out of their savings, their family's cupboards, etc. because the breadwinner has to be able to get to work in a car because Tri-Met has cut their frickin' bus route and it's too far to walk.
Posted by NW Portlander | June 10, 2009 9:46 PM
Not that I agree or disagree with what the Federal Government is currently doing, but NW Portlander is missing the point of the new car purchasing stimulus. The main purpose is not to reward the car purchaser, but to stimulate the auto industry.
I tried to research the fees in Oregon for purchasing a new car and I don't see anything that is based on the sales price and I could only find about $115 worth of title, registration, license plates, etc. Not going to help the Oregon auto industry much!
Posted by Stephanie Smith | June 11, 2009 2:17 PM