Some Surprised By ‘Clunker’ Tax (2)
The Cash For Clunkers program is adding to the activity at treasurers’ offices all around South Dakota. First, people were asking for proof of ownership, so they could show they owned their vehicle for a full year, allowing them to cash it in. Now, they’ll be returning to register their new vehicle. And when they do, new owners need to bring every bit of paperwork provided to them by their dealer.
“That means they need their title, their damage disclosure, their bill of sale and the dealers have 30 days to get that to them,” Minnehaha County Treasurer Pam Nelson said.
But many of those cashing in on the clunkers program are surprised when they get to the treasurer’s office windows. That’s because the government’s rebate of up to $4500 dollars for every clunker is taxable.
“They didn’t realize that would be taxable. A lot of people don’t realize that. So they’re not happy and kind of surprised when they find that out,” Nelson said.
For now, the biggest impact of the program hasn’t hit this office yet, as most of the paperwork is still in the hands of the dealers. But Nelson expects to see move activity in her office in the next month.
“I’m anxious to see what it’s going to be like. I have no idea how many people we’re going to see. Hopefully the dealers can process their paperwork in 30 days,” Nelson said.
And that’s when the line at this office will give some indication of how many cars the government program moved off of local lots.
Nelson adds that if you did recently purchase a vehicle, ensure your dealer gets you the paperwork in time because if they don’t you could pay extra interest and penalties.
[Source]
Updates:
4:03 pm EDT, August 28th, 2009 — German car sector could face up to 90,000 job cuts
Notes:
I just shake my head.
Popularity: 16% [?]
Male, retired and the rest is of little interest to anyone. The site keeps me busy and if it helps others to stay abreast of daily events then my time is well spent.
mike Says:
Read the fine print folks. Haven’t these people figured out that there is no free ride?
Of course there would be taxes. That is what government is all about. Wait till people start trying to claim the home renovation credits here in Canada. I’m sure there are some surprises in there for us. It can’t be as simple and free as they make it sound.
mid island mike
Posted on August 28th, 2009 at 3:28 pm
Mac Says:
I hope the home renovation credits aren’t too complicated. It would be nice to get some cash back.
Posted on August 28th, 2009 at 11:12 pm