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zDEFEKT t1_itm5yol wrote

They tax you on the price of the car. The car is $53k so they will tax you on that. Doesn’t matter about trade in even if it brings you back below the threshold. Found this out myself recently by experience.

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ctthrowaway55 OP t1_itmocbo wrote

This is how it was explained to me by sales guys at different dealerships. Still doesn't make sense to me, and the language in the book doesn't read that way. I'm due to take delivery in a couple weeks and need to sort this out...

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jaredsparks t1_itnp95b wrote

I'm an attorney here in CT. I bought a MYLR for $49,900, plus tax which put it at about $55k. I had to pay the luxury tax. It's based on the total price, including tax. I researched the law. Trade-ins make no difference.

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