FREE STATE TAX CHART! Sales Taxation of "Cash for Clunkers" Rebate Payments

The federal government “Consumer Assistance to Recycle and Save Program" (CARS),Title XIII of PL 111-32 (2009), 123 Stat. 1859, a.k.a. “Cash for Clunkers”, is effective until November 1, 2009. The program promotes purchases and leases of new vehicles to help advance environmental improvement.

How are Cash for Clunkers rebates treated for state sales and use tax purposes? The answer varies from state to state. Some states view Cash for Clunkers rebates as third-party consideration and not a nontaxable augmentation of the trade-in value of the car. In other states, rebates qualify for exemption from sales tax, either as a trade-in allowance, a third party discount or rebate, or a transaction with the federal government.  

The LexisNexis Tax Law Center Staff invites you to view particulars in this State-by-State Sales Tax "Cash for Clunkers" Chart.