Gas Guzzler Tax???

[Shiftinggearz]

This question has probably been addressed, however I need to know this... Is there Gas Guzzler Tax for the 2011 M3's? They are not showing this on BMW USA for 2011 M3's, but they had it showing for 2010 M3's. Please let me know. Thanks

[datalink7]

Short answer: yes.

[Shiftinggearz]

Didnt show on the site so I thought they might have done away with it. Thx

[MCarRacr07]

gas guzzler tax on an E90 2011 M3 is $1300.

[ssemerod]

as the saying goes....."if you have to ask, then,........" so, with that said, are you sure you really need to know?

[Zoli007]

Has anyone addressed with a dealer the BS of double taxation with this gas guzzler deal?

They add the tax as if it were an option, and you pay sales tax on a tax... Doesnt seem right.

[Moxie]

Originally Posted by Zoli007

Has anyone addressed with a dealer the BS of double taxation with this gas guzzler deal?

They add the tax as if it were an option, and you pay sales tax on a tax... Doesnt seem right.

Dealer doesn't have a vote. It's a Federal excise tax.

[PoorMan]

Originally Posted by ssemerod

as the saying goes....."if you have to ask, then,........" so, with that said, are you sure you really need to know?

[dhoggm3]

I thought the current admin had done away with that tax. Then I woke up.

Originally Posted by Zoli007

Has anyone addressed with a dealer the BS of double taxation with this gas guzzler deal?

They add the tax as if it were an option, and you pay sales tax on a tax... Doesnt seem right.

they shouldn't be doing this. recheck your invoice

[Eau Rouge]

Originally Posted by Zoli007

Has anyone addressed with a dealer the BS of double taxation with this gas guzzler deal?

They add the tax as if it were an option, and you pay sales tax on a tax... Doesnt seem right.

1. Yup.

2. You are correct: It isn't right since that would constitute a double tax where the federal tax (GGT) is used to generate additional tax revenue for the state, county, township, you-name-it entities.

Originally Posted by Moxie

Dealer doesn't have a vote. It's a Federal excise tax.

True. However, the federal GGT is levied on the seller of the vehicle not the buyer. Consequently, as far as the federal government is concerned, the responsibility for paying the GGT falls solely on the shoulders of the dealership. Please refer to IRS Form 6197 (Link: http://www.irs.gov/pub/irs-pdf/f6197.pdf)

Originally Posted by ///Flash

they shouldn't be doing this. recheck your invoice

The GGT will be on the bill of sale or at least it is on the BoS here in Florida. In fact, the dealer will tell you that "You have to pay the GGT because it's federal law," or words to that effect. That, of course, is nonsense. The dealer has to submit GGT payment to the IRS for all vehicles sold with applicable GGT. If you can be conned into paying the GGT when you buy a car, the dealer has just managed to dodge a legitimate business tax by shifting it to you as a consumption tax.

What to do? Ask the dealer for a quote that excludes all taxes, but does include destination charge. Later when the dealer "has to add" the GGT balk. At the very least, one should be able to get the dealer to split the GGT. Afterall, if the dealer says that by having to pay the GGT he will lose money or make no money on the transaction, you can always thank whomever for his/her time and head for the door to look for a dealership that isn't so comfortable telling bald-faced lies.

[e46e92love]

Originally Posted by Eau Rouge

What to do? Ask the dealer for a quote that excludes all taxes, but does include destination charge. Later when the dealer "has to add" the GGT balk. At the very least, one should be able to get the dealer to split the GGT. Afterall, if the dealer says that by having to pay the GGT he will lose money or make no money on the transaction, you can always thank whomever for his/her time and head for the door to look for a dealership that isn't so comfortable telling bald-faced lies.

Well then let me ask you a question, did you pay the GGT, or did your dealer?

Cheers,
e46e92

[Eau Rouge]

Originally Posted by e46e92love

Well then let me ask you a question, did you pay the GGT, or did your dealer?

Cheers,
e46e92

Twice, where GGT was applicable, CA's said that I had to pay it, GGT was part of the price of the car, yada yada yada. When I asked to see proof in manufacturer invoice to dealer that in fact the dealership was being charged by BMW for GGT, it was game over since BMW does "sell" its cars to US dealerships without applicable GGT factored into factory to showroom price. However, to answer your question, twice where GGT was applicable I avoided paying the entire GGT amount; 50% split. And no, I didn't feel like a major victory had been won.

[///M Rakete]

GGT appears on BMW's invoice to the dealer. I know, I have it for my car. GGT is paid to Uncle Sam by the manufacturer. It is not a tax collected at the point of sale, it is a tax paid by the manufacturer, as such it is no different than any other option or pass thru charge and is subject to sales tax. At least in California and probably most everywhere else.

[Eau Rouge]

Originally Posted by ///M Rakete

GGT appears on BMW's invoice to the dealer. I know, I have it for my car. GGT is paid to Uncle Sam by the manufacturer. It is not a tax collected at the point of sale, it is a tax paid by the manufacturer, as such it is no different than any other option or pass thru charge and is subject to sales tax. At least in California and probably most everywhere else.

Agreement with your first sentence and the first half of the second sentence. Yes to "subject to sales tax" when treated as an option, but when the manufacturer "purchased" the GGT "option" from the federal government, the manufacturer didn't pay a sales tax on top of the GGT fine, did it? Bear with me here.

I have seen window stickers that listed the GGT as a dealer installed option. My question is ... If it's dealer installed, would you mind de-installing it to seal the deal?

Including the "Gas Guzzler Tax ($XXXX) among the options or dealer installed options is common, but all the federal regulations require is that the manufacturer disclose that it has manufactured a car that has "exceptionally low fuel economy". The GGT disclosure must appear in the EPA gas mileage section of the Monroney window sticker. Any further mention of a gas guzzler tax is going beyond the requirements of federal regulations. However, apparently, dealerships have been passing the tax along to those who do not manufacture gas guzzling cars.

[Shiftinggearz]

It is interesting to see the reposnses to this. I did some further reasearch, and Edmunds shows this charge when configuring their pricing. I am going to try and negotiate this cost w/ the dealership, however when we last left it, they were sticking to their guns that I will be paying it. Another thought, if I do end up paying it, is paying it with the down payment so as not to pay tax on it within the lease itself.

[Alex1911]

Interesting point, I never thought of it, I'm going to demand they refund the sales tax on the $1300.

It's really not uncommon to pay sales tax on the excise tax... Firearms have an 11% excise tax, people still pay the sales tax and never think anything of it.

[Shiftinggearz]

You should, This is what dealerships count on, people not picking up on this. To charge a tax on a tax in beyond ridiculous, but apparently legal.

[positiveions]

what gives about this "Gas Gazzler tax"? when American pick up trucks do worse than M3s' and they don't get this hefty "Gas gazzler tax". It is damn rip off. Time to buy a jet, i heard there are no gas gazzler tax there.

[///M Rakete]

I think you guys are all barking up the wrong tree. Just because it is listed as "Gas Guzzler Tax" on the Monroney doesn't meant it is a "tax" when the dealer is invoiced or you purchase/lease the car. GGT is a tax paid by the manufacturer. After that it is nothing more than a pass thru like MACO and Training from BMWNA to the dealer. That's why it is on the wholesale invoice to the dealer. As such it is an element of the sales price just like anything else: profit, MACO, Training, options, car, whatever you negotiate the final price to be. That final price minus and hidden trunk money will be what the dealer pays BMWNA and it will include MACO, Training, and the GGT. Whatever is left over is what BMWNA presumably books for the car. Since GGT, like the rest of the stuff, is part of the sales price it is subject to sales tax. You can "negotiate" it but your just taking money from some other pot. Negotiate from invoice, understand what the dealer has to pay, understand when there is hidden trunk money, and allow for whatever profit you and they agree to.