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      05-10-2011, 07:34 PM   #1
jqsmooth
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Gas Guzzler Tax

I don't know if this has been discussed before. I bet it has. I searched but couldn't find it.

Do you pay state sales tax on gas guzzler tax? It's a double whammy. Thanks for your input.
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      05-10-2011, 08:51 PM   #2
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You can't be taxed on taxes. If you are, that's called a penalty/interest.
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      05-10-2011, 09:48 PM   #3
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Yes you pay tax on it. The confusion comes from the fact that the gas guzzler tax isn't a tax, or at least it's not a tax on the buyer. Nobody takes your GGT and sends a check to the government as the company has already paid it.

It's a classic example of how the government is going to make the world better by making those mean old corporations do the right thing and build politically correct high MPG cars that few people really care to buy. The government does this by penalizing the manufacturer with an excise tax for producing cars with lower than what the government deems is morally responsible MPG.

Naturally, as in all of these government schemes, the politicians pretend they're making the evil corporations pay for their evilness all the while knowing the corporations just pass the fee directly on to the buyer via the "GGT" on the invoice. Voila', a tax raise on the consumer masquerading as a "green" fee on the evil corporations that force us all to drive 414HP sports cars. Of course, by labeling it as a separate Gas Guzzler Tax on the invoice the corporation is telling the consumer "don't blame us."

Since it's a passed on expense, not a consumer tax, yes, you pay tax on it.
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Last edited by Mace; 05-10-2011 at 10:01 PM.
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      05-10-2011, 09:50 PM   #4
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Quote:
Originally Posted by conradb View Post
You can't be taxed on taxes. If you are, that's called a penalty/interest.
Well, I've been given a couple of quotes where the tax on the vehicle was based on the total negotiated price including the gas guzzler tax. It's only ~$100, but it bothers the s%@$ out of me. WTH!
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      05-10-2011, 10:50 PM   #5
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Yup, I had to pay tax on the gas guzzler on every new car I have purchased.

However, if you are buying a used car, make sure they don't sneak the gas guzzler tax in there. The gas guzzler tax is just a one time fee to the first owner of the car that bough it new.
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      05-10-2011, 11:01 PM   #6
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Thank you for your replies. I guess it's the price we gotta pay to drive the ultimate driving machine. I wonder if the RS5s, C63s, and other premium cars have them too.
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      05-10-2011, 11:05 PM   #7
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I recently learned one good thing about BMWFS and the GGT though. For leases BMWFS residualizes the GGT. Just about every other bank/car company do not residualize it.
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      05-10-2011, 11:56 PM   #8
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Quote:
Originally Posted by Mace View Post
Yes you pay tax on it. The confusion comes from the fact that the gas guzzler tax isn't a tax, or at least it's not a tax on the buyer. Nobody takes your GGT and sends a check to the government as the company has already paid it.

It's a classic example of how the government is going to make the world better by making those mean old corporations do the right thing and build politically correct high MPG cars that few people really care to buy. The government does this by penalizing the manufacturer with an excise tax for producing cars with lower than what the government deems is morally responsible MPG.

Naturally, as in all of these government schemes, the politicians pretend they're making the evil corporations pay for their evilness all the while knowing the corporations just pass the fee directly on to the buyer via the "GGT" on the invoice. Voila', a tax raise on the consumer masquerading as a "green" fee on the evil corporations that force us all to drive 414HP sports cars. Of course, by labeling it as a separate Gas Guzzler Tax on the invoice the corporation is telling the consumer "don't blame us."

Since it's a passed on expense, not a consumer tax, yes, you pay tax on it.
He is absolutely correct... You see these taxes alot on your cell phone bill. Now if we can only get this idiot to stop spending out of control and getting us into more debt.

http://www.washingtonpost.com/politi...4bD_story.html
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      05-11-2011, 09:54 AM   #9
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Quote:
Originally Posted by jqsmooth View Post
I don't know if this has been discussed before. I bet it has. I searched but couldn't find it.

Do you pay state sales tax on gas guzzler tax? It's a double whammy. Thanks for your input.
Don't forget about all the tax you will pay on all the gas you will need to buy because your car is a "gas guzzler". So in that regard, it is a double whammy, actually it's a tripple whammy.
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      05-13-2011, 04:03 PM   #10
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Quote:
Originally Posted by nick3753 View Post
Don't forget about all the tax you will pay on all the gas you will need to buy because your car is a "gas guzzler". So in that regard, it is a double whammy, actually it's a tripple whammy.
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      05-13-2011, 04:23 PM   #11
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      05-14-2011, 03:57 PM   #12
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Thus, the government might tax us one day for passing a flatulence: methane gas that contributes to global warming. BS I say....
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