Think of it this way. If you bought a car in SC they cap the taxes @ $349. So if you bought the car in SC and you lived in GA you would only be charged $349 but when you get to GA they will send you a bill for the remainder of the taxes owed to GA. 6% of the car's cost minus the $349. It says on your contract that you are paying $349 but try to tell GA you already paid taxes.
3chordcharlie
Diamond Member
- Mar 30, 2004
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Not at the dealer's expense - the price is clearly indicated on the contract; the tax is wrongly calculated. There's no indication that either party knowingly signed a contract for the wrong tax amount, so there's no culpability. Therefore the tax should be paid by the same party who would have paid it if it were correctly calculated in the first place.
The contract has a small error - it would be illegal for the dealer to change the sale price of the vehicle to match the final line of the contract; so it needs to be corrected. The customer agreed to the price, and has to pay the tax.
I bet your contract says you are required to pay all taxes. Other then that it is the dealer who will have to eat the 150 dollars for tax. If dealer wasn't required to pay the tax why would the state contact the dealer and not you?
JulesMaximus
No Lifer
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3chordcharlie
Diamond Member
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The dealer collects the taxes; they don't pay them (well, they do, through market theory, but not according to the rules).
3chordcharlie
Diamond Member
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I'm surprised they didn't, given that it isn't very much money, as a goodwill gesture. But I really don't think they are required to.
Like someone said, I'd take 15000 pennies, walk into the Sales Manager's office, and say this:
You - Hey I'm here to pay that $150 you guys messed up on my contract, and now won't eat because you have no honor and are lousy people.
Him - Well, I'm sorry sir, nothing I can do.
You - Here you go (then dump 15000 pennies on the ground in his office.)
Him - What the fuck!?
You - Payment is payment....
You - Hey I'm here to pay that $150 you guys messed up on my contract, and now won't eat because you have no honor and are lousy people.
Him - Well, I'm sorry sir, nothing I can do.
You - Here you go (then dump 15000 pennies on the ground in his office.)
Him - What the fuck!?
You - Payment is payment....
JulesMaximus
No Lifer
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Well, I've purchased dozens of cars from dealerships and I've never had to send off a check to the state for taxes. I say once you've signed the contract that you are off the hook for any mistakes the dealership might have made in the paperwork.
I'm positive that here in California anyway that's the way it works. The dealership can come after you to try to collect it but ultimately it is their responsibility to pay for their mistake. A contract is a contract. They need to pay for their mistake.
That is so much BS. Do you really think any company would collect tax if they where not required by law to do so?
3chordcharlie
Diamond Member
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They are required to.
That has nothing to do with who is responsible for the cost of an error.
If the dealer had mistakenly charged too much tax, they would be obligated to give it back to you, too.
Vic
Elite Member
- Jun 12, 2001
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Read the fscking thread. The seller (if a licensed dealer, reseller, merchant, or vendor) is required to collect the tax as a SERVICE to the state as part of their license to do business. The buyer is ultimately the one who is legally responsible to pay the tax. As I already posted, this is how the state guarantees that they get their money.
But, in essense, it is not really much different than the way your employer is required to withhold your taxes from your paycheck, but you are ultimately required to file your returns and pay your taxes each spring. If your employer withholds the wrong amount and you come short, are they required to pay your taxes for you? Of course not.
:roll: to all the thick-headed posters in this thread
It has everything to do with who pays for the error. The dealership argued to sell a car with the wrong amount of tax. The dealer is required by the state to pay the state the correct amount of tax. Niether the state nor the dealer would be able to sue the OP for the remandier of the tax.
They are required by law to do so, but it is still you that is actually paying the tax. They're under no obligation to pay it for you.
At least, that's how I'm understanding it.
3chordcharlie
Diamond Member
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They aren't really thick-headed, they're just taking the John Wayne don't-fvck-with-the-Duke thing a little too far.
The guy has a legitimate complaint that the dealer should have done this right in the first place, but it doesn't absolve him of responsibility for paying the tax.
I wouldn't buy another vehicle there if that happened to me.
Edit - I take it back - some are refusing to understand that the dealer does not pay the tax. They collect it. The difference is substantial and relevent.
Edit-2 - BTW the original premise of the question is incorrect: the customer is being asked to pay despite the mistake in the original tax calculation, not because of it.
Vic
Elite Member
- Jun 12, 2001
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The dealership made an error without intent. Had they not made the error, the buyer would have had to pay the correct tax amount anyway. As the buyer is legally responsible for the tax, it was really his duty to know what the proper tax should have been.
They won't even have to sue him. They can simply delay the title transfer to his name indefinitely or they can lien the vehicle or even lien his drivers license (which could prevent him from renewing it). The state can do many things the rest of us cannot in order to get their money.
The dealership (as I said) is simply providing a service to the state. If the OP refuses to pay the taxes and he financed the vehicle, another recourse they have is that they can even go back and re-write the finance contract to include the deficient tax amount in the balance owed (and the lender would agree with it and it would be legal as they would simply be protecting their interest in the collateral, an interest the OP would have signed to uphold). The lender can even default on the OP and force repossession simply for the OP not upholding the lenders interest in having a clean title on the collateral.
All of the above is unlikely, but possible. Long story made short: give unto Caesar that which is Caesars, 'cause Caesar is a badass who can fsck your life over. Pay your taxes.
3chordcharlie
Diamond Member
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§ 105-164.7. Sales tax part of purchase price.
Every retailer subject to the tax levied in G.S.
105-164.4 shall at the time of selling or delivering or taking
an order for the sale or delivery of taxable tangible personal
property or a taxable service, or collecting the sales price,
add to the sales price the amount of tax due. The tax
constitutes a part of the purchase price, is a debt from the
purchaser to the retailer until paid, and is recoverable at law
in the same manner as other debts. The tax must be stated and
charged separately from the sales price, shown separately on the
retailer's sales records, and paid by the purchaser to the
retailer as trustee for and on account of the State. The
retailer is liable for the collection of the tax and for its
payment to the Secretary. The retailer's failure to charge to or
collect the tax from the purchaser does not affect this
liability. It is the intent of this Article that the tax be
added to the sales price of tangible personal property and
services when sold at retail and be borne and passed on to the
customer, instead of being borne by the retailer. (1957, c.
1340, s. 5; 1973, c. 476, s. 193; 2000-19, s. 1.3.)
Doesn't say whether the seller can go back to the customer to correct errors, but it does say if they don't collect the tax, they still have to submit it. Note use of the word 'collect'.
In the absence of case law, and using laws for a different state, this is hardly good support that the dealer is on the hook for the error.
Every retailer subject to the tax levied in G.S.
105-164.4 shall at the time of selling or delivering or taking
an order for the sale or delivery of taxable tangible personal
property or a taxable service, or collecting the sales price,
add to the sales price the amount of tax due. The tax
constitutes a part of the purchase price, is a debt from the
purchaser to the retailer until paid, and is recoverable at law
in the same manner as other debts. The tax must be stated and
charged separately from the sales price, shown separately on the
retailer's sales records, and paid by the purchaser to the
retailer as trustee for and on account of the State. The
retailer is liable for the collection of the tax and for its
payment to the Secretary. The retailer's failure to charge to or
collect the tax from the purchaser does not affect this
liability. It is the intent of this Article that the tax be
added to the sales price of tangible personal property and
services when sold at retail and be borne and passed on to the
customer, instead of being borne by the retailer. (1957, c.
1340, s. 5; 1973, c. 476, s. 193; 2000-19, s. 1.3.)
Doesn't say whether the seller can go back to the customer to correct errors, but it does say if they don't collect the tax, they still have to submit it. Note use of the word 'collect'.
In the absence of case law, and using laws for a different state, this is hardly good support that the dealer is on the hook for the error.
JulesMaximus
No Lifer
- Jul 3, 2003
- 74,600
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Sure they are, they signed a contract stating that they would pay the taxes on your behalf.
Edit-They even charged you a fee for the "convenience."
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