Father got ripped off need some help/advice where to go for help

[JImmyK]

Long story short we are in VA. Dad purchased a car in NJ. My father wrote a check for the car and mailed it to them asking for a detailed breakdown. In the breakdown it said 6% sales tax, my father replied asap saying they shouold have charged him 4.5% because we are in VA not NJ.

The guy replied on the phone saying "Sir you are absolutely correct and that the dealership thought we were in NJ", since it was financed by the bank he said they will send a refund check of $660 which is the 1.5%. That was 3 months ago now.

In the beginning we would call and he would reply saying Ill call you right back sir, of coruse he would never call. We have sent letters faxes and emails to no avail.

Whats the next course of action for something like this?

 

[rudeguy]

small claims is the only option.

BTW, here in MI if something is being shipped out of state, we don't charge sales tax.

 

[JImmyK]

Originally posted by: rudeguy
small claims is the only option.

BTW, here in MI if something is being shipped out of state, we don't charge sales tax.

Really even on a car?

 

[Sensor]

Originally posted by: JImmyK

Originally posted by: rudeguy
small claims is the only option.

BTW, here in MI if something is being shipped out of state, we don't charge sales tax.

Really even on a car?

It depends. When you register a car in NJ, the DMV charges you sales tax at that time. A dealership will charge you sales tax in the DMV's stead since they do the registration for you. On that note, if the dealership registered your car in VA for you, then they should bill you for the sales tax. If you registered your car yourself, then VA charged you the sales tax, which means you paid sales tax twice, which means you need to bitch and whine to someone.

 

[iamwiz82]

Originally posted by: JImmyK

Originally posted by: rudeguy
small claims is the only option.

BTW, here in MI if something is being shipped out of state, we don't charge sales tax.

Really even on a car?

I bought a car out of state from a dealer and only paid the sticker. The sales tax was charged in my home state when I registered it.

 

[JImmyK]

Originally posted by: Sensor

Originally posted by: JImmyK

Originally posted by: rudeguy
small claims is the only option.

BTW, here in MI if something is being shipped out of state, we don't charge sales tax.

Really even on a car?

It depends. When you register a car in NJ, the DMV charges you sales tax at that time. A dealership will charge you sales tax in the DMV's stead since they do the registration for you. On that note, if the dealership registered your car in VA for you, then they should bill you for the sales tax. If you registered your car yourself, then VA charged you the sales tax, which means you paid sales tax twice, which means you need to bitch and whine to someone.

Thats exactly what I was assuming which is why I said only 660 IE 6% what they charged vs the 4.5% in VA. And the funny thing is they have acknolwedged it many times and its been 3 months now. Can we call their local PD and file a complaint at all?

 

[Orsorum]

First, just by a cursory glance at NJ's Division of Taxation website, your dad should not have been charged sales tax in the first place. He should have filled out a form ST-10 (IIRC) and filed it with the DOT.

Second, yes, your dad does have to pay use tax in Virginia. Link, check out page 8.

All that being said, I'd say speak with a manager at the car dealership, and failing that, a representative from the NJ DOT.

 

[JImmyK]

Originally posted by: Orsorum
First, just by a cursory glance at NJ's Division of Taxation website, your dad should not have been charged sales tax in the first place. He should have filled out a form ST-10 (IIRC) and filed it with the DOT.

Second, yes, your dad does have to pay use tax in Virginia. Link, check out page 8.

All that being said, I'd say speak with a manager at the car dealership, and failing that, a representative from the NJ DOT.

Well he tried to but they said since they are doing the financing they have to register the car.

I didnt think DOT had anything to do with Car dealerships/payments etc

 

[AnyMal]

Originally posted by: JImmyK
Long story short we are in VA. Dad purchased a car in NJ. My father wrote a check for the car and mailed it to them asking for a detailed breakdown. In the breakdown it said 6% sales tax, my father replied asap saying they shouold have charged him 4.5% because we are in VA not NJ.

The guy replied on the phone saying "Sir you are absolutely correct and that the dealership thought we were in NJ", since it was financed by the bank he said they will send a refund check of $660 which is the 1.5%. That was 3 months ago now.

In the beginning we would call and he would reply saying Ill call you right back sir, of coruse he would never call. We have sent letters faxes and emails to no avail.

Whats the next course of action for something like this?

They shouldn't have charged the tax in the first place since your father is out of state. Dealership is clearely at faul and should reimburse whole 6% instead of 1.5% Talk to the general manager and tell him they have 10 business days to get money to you or you are calling in lawyers and it will cost them more.

 

[Orsorum]

Originally posted by: JImmyK
Well he tried to but they said since they are doing the financing they have to register the car.

I didnt think DOT had anything to do with Car dealerships/payments etc

When car dealerships (well, any retailer) register for business in a state that levies Sales and Use taxes, they are held liable for the collection and remittance of sales tax to that particular states' department of revenue.

I didn't see that your dad had actually financed the car through the dealership, that might change my answer.

 

[rahvin]

Contact BOTH states tax commisions and report the violation. If you get lucky one of the two tax commisions might help you, the most effective would be the one in the dealers state. They are commiting tax fraud if they don't remit the monies to the commision they claimed to collect it for.

BTW who buys a car before they see a total breakdown of every single charge?

 

[tami]

Originally posted by: rudeguy
BTW, here in MI if something is being shipped out of state, we don't charge sales tax.

it's slowly changing, you'll end up seeing. since you're now supposed to claim taxes on internet purchases, the internet retailers themselves are trying charge the tax instead.

i recently bought something at work (in NY) and was charged the 4.5% TX tax. i'm guessing other out-of-state venues will begin to charge tax since nobody ever claims their purchases on the internet. (buy now while you can!)

 

[JImmyK]

Originally posted by: rahvin
Contact BOTH states tax commisions and report the violation. If you get lucky one of the two tax commisions might help you, the most effective would be the one in the dealers state. They are commiting tax fraud if they don't remit the monies to the commision they claimed to collect it for.

BTW who buys a car before they see a total breakdown of every single charge?

Ill do that thanks, and my fathers 64 years old, he has become a bit trusting in his later years.

 

[Kelemvor]

Tax is a Federal issue. I'd contact the IRS or your state's consumer protection/attorney general department.

 

[jadinolf]

Originally posted by: FrankyJunior
Tax is a Federal issue. I'd contact the IRS or your state's consumer protection/attorney general department.

I don't think State Tax is a federal issue.

 

[Orsorum]

Originally posted by: FrankyJunior
Tax is a Federal issue. I'd contact the IRS or your state's consumer protection/attorney general department.

State and Local tax is very much the jurisdiction of the states themselves, unless the states begin interfering with interstate commerce or violate some other constitutional clause.

 

[Baked]

There's no way around it. They will make you pay for the tax in the city you live in no matter how far you get that car from.

 

[Eli]

Originally posted by: tami

Originally posted by: rudeguy
BTW, here in MI if something is being shipped out of state, we don't charge sales tax.

it's slowly changing, you'll end up seeing. since you're now supposed to claim taxes on internet purchases, the internet retailers themselves are trying charge the tax instead.

i recently bought something at work (in NY) and was charged the 4.5% TX tax. i'm guessing other out-of-state venues will begin to charge tax since nobody ever claims their purchases on the internet. (buy now while you can!)

I'll be pissed if this ever happens, especially since I live in Oregon.

It would practically be the end of online being cheaper....

 

[Orsorum]

Originally posted by: Eli

Originally posted by: tami

Originally posted by: rudeguy
BTW, here in MI if something is being shipped out of state, we don't charge sales tax.

it's slowly changing, you'll end up seeing. since you're now supposed to claim taxes on internet purchases, the internet retailers themselves are trying charge the tax instead.

i recently bought something at work (in NY) and was charged the 4.5% TX tax. i'm guessing other out-of-state venues will begin to charge tax since nobody ever claims their purchases on the internet. (buy now while you can!)

I'll be pissed if this ever happens, especially since I live in Oregon.

It would practically be the end of online being cheaper....

Yeah, many retailers are starting to crack down on that form of tax evasion.

 

[wiredspider]

Thank goodness for tax free DE.