re: #585 Kragar (Proud to be Kafir)

Some Surprised By ‘Clunker’ Tax

It’s only taxed as state sales tax, just like any rebate would. i.e., if you bought a car for $13,500, and the rebate got you down to 10K, you pay sales tax on the full price of the car and of course the dealer pays tax on the rebate income he gets.