Interesting article in Friday’s Washington Post: Auto Rebates Don’t Help Tax Bite D.C. and Many States Base Their Take on Full Vehicle Price:
The recent explosion of cash-back coupons and rebates on the sale of cars and trucks has done great things for automobile manufacturers, for consumers, and — largely unnoticed — for many state tax collectors. Edmunds.com, which tracks the automobile industry, put total cash rebates last year at more than $28 billion nationwide. And lots of states are collecting sales or excise taxes on that amount, even though it is ultimately returned to customers.
