Get Luxury Car Tax Refund

The New Jersey Motor Vehicle Commission (MVC) imposes a one-time 0.4% Luxury and Fuel-Inefficient Vehicle Surcharge (LFIS) on ownership of new passenger automobiles with a sales price or lease price of at least $45,000, or a fuel efficiency rating of less than 19 miles per gallon.

Car sales tax rates fall between 0% to 8.25% depending on the state, with a national average rate of 4.99%. At 8.25%, Nevada has the highest car tax rate. Because they don't charge anything at all, Alaska, Delaware, Montana, New Hampshire, and Oregon have the lowest car tax rate at 0.0%.

California Sales Tax on Car Purchases: California collects a 7.5% state sales tax rate on the purchase of all vehicles, of which 1.25% is allocated to county governments.

So Congress passed a 10 percent luxury surcharge tax on boats priced over $100,000, cares over $30,000, aircraft over $250,000, and furs and jewelry over $10,000. The federal government estimated that it would rake in $9 billion in extra revenues over the following five-year period.

Are there any ways to avoid paying the luxury car tax? The car has been modified to be used for people with disabilities. The car is a motorhome or campervan. It's a commercial vehicle designed for carrying goods. The recipient has a quoted ABN.

A federal tax not subject to the retail sales or B&O tax is the 5% luxury tax charged on vehicles which cost over $38,000. Another federal consumer tax is the 12% excise tax charged on certain trucks, tractors, and trailers.

The federal government imposed a luxury tax in 1991 on boats, autos, private planes, and jewelry, but the tax was repealed just two years later when it adversely impacted certain industries.

The “supplemental titling fee” is a one-time fee imposed at the time a new vehicle is first titled in the State of New Jersey, in the amount of 0.4% of the sales price or the lease price, as determined in ance with the rules set forth below.