Expert: Jeremy Beck - 5/22/2009

Question
QUESTION: If you live in TN and buy a car in MS, do you have to pay the tax on the asking price or the price less the rebate?

ANSWER: Susan,

Thanks for your question.  In most states, MS included, you pay taxes on the sales price less rebates.  

Thanks - JB

---------- FOLLOW-UP ----------

QUESTION: we bought a truck yesterday and they made us pay tax on the rebate.  Do I have an recourse?

Answer
Susan,

I would make sure that they did charge you tax on the rebate.  If they did, then they are incorrect, and you need to call your tax office.  Now with all of that being said, I don't live in MS or TN so all I have to go on is the resource on the web as far as the taxes.  Call your local DMV office to confirm.  While I may give advice and may be considered the "expert", I don't always have all of the answers, so I always refer people to contact their local offices or other resources to make sure.  Simply call you local DMV office in the county that you reside in, and ask them the question.  If they charged you to much taxes, they are required to refund you the full amount, by federal and state law.  The DMV office will not let them charge you to much and will notify the dealership that they charged you to much.  It is up to the dealership to refund you the difference.  You just may have to stay on top of them about it.  The first step though is to call your local DMV office and verify.

Thanks again - JB