Sales tax on extended warranty?

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Old Oct 24, 2006 | 02:35 PM
  #1  
kfhughes's Avatar
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Sales tax on extended warranty?

I'm planning on purchasing an extended warranty and want to give my local dealership the chance to match the prices on hondacuraworld.com. But I notice they don't mention anything about sales tax. Now since many Internet site don't charge sales tax I'm not sure it my local dealer (in California) would be required to or not. Does anyone know if this is taxable?
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Old Oct 24, 2006 | 03:04 PM
  #2  
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I'm interested in this as well. Please let me know how much you were able to get it for.
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Old Oct 24, 2006 | 03:17 PM
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Since a warranty is a service and not a product I would think it is not taxed (car insurance, etc.) but I am not sure.
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Old Oct 24, 2006 | 06:19 PM
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I work for Nissan, and our warranties here in PA are taxed.
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Old Oct 24, 2006 | 06:28 PM
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Originally Posted by kfhughes
I'm planning on purchasing an extended warranty and want to give my local dealership the chance to match the prices on hondacuraworld.com. But I notice they don't mention anything about sales tax. Now since many Internet site don't charge sales tax I'm not sure it my local dealer (in California) would be required to or not. Does anyone know if this is taxable?
I used (how did I ever live without it?) and found this answer. In California, the price you pay for an extended warranty is not taxable. This has nothing to do with whether you purchase the extended warranty online or at a California car dealer or other California location - extended warranties are just plain not taxable in California.

For further information refer to this PDF at the state's website: California Board of Equalization

Disclaimer: I have no idea if this is true in other states.
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Old Oct 24, 2006 | 06:41 PM
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Originally Posted by BoostedAWD
I work for Nissan, and our warranties here in PA are taxed.
Just because your dealership is charging tax does not mean that thet are required to or should. Most "services" are not taxed. They are not in the 4 states I have lived in, Maryland, Virginia, North Carolina, and Colorado. I am sure Pennsylvania likes the extra revenue. I would check PA law on that one to be sure.
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Old Oct 24, 2006 | 06:52 PM
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Originally Posted by batting_cleanup
Just because your dealership is charging tax does not mean that thet are required to or should. Most "services" are not taxed. They are not in the 4 states I have lived in, Maryland, Virginia, North Carolina, and Colorado. I am sure Pennsylvania likes the extra revenue. I would check PA law on that one to be sure.

After posting the first message I checked the Pennsylvania law and they do tax on services. SUre sucks to live in the Keystone State. Terrible property tax rates and some of the worst roads in the country. Of course the dentists love it when you jar your teeth loose driving your TL on their roads
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Old Oct 24, 2006 | 07:15 PM
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Originally Posted by rt4563
I used (how did I ever live without it?) and found this answer. In California, the price you pay for an extended warranty is not taxable. This has nothing to do with whether you purchase the extended warranty online or at a California car dealer or other California location - extended warranties are just plain not taxable in California.

For further information refer to this PDF at the state's website: California Board of Equalization

Disclaimer: I have no idea if this is true in other states.
Cool; I went to the CA Franchise Tax Board website but didn't get any hits. Thanks for the info.
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Old Oct 24, 2006 | 08:11 PM
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if you are outside of NY, then it's tax free via Hondacuraworld. since Ray Laks is in NY, people in NY have to pay sales tax...
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Old Oct 25, 2006 | 08:28 AM
  #10  
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Originally Posted by kfhughes
Cool; I went to the CA Franchise Tax Board website but didn't get any hits. Thanks for the info.
You're welcome. Just so you know in the future, the California Franchise Tax Board handles income tax matters (California's equivalent of the IRS) and the California Board of Equalization handles sales tax matters.

Leave it to the stupid government of California to have confusing, meaningless names for their departments.
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