We reside in MO but purchased a car in KS. We put a down payment and financed the rest of it. Since we pay sales tax in MO, not KS we did not have to pay sales tax that day. After rereading the extended warranty we decided to return it for a refund and the Finance Officer at the dealership said he would credit it to our finance amount.

When we went to go pay our sales tax in MO, the credit had not shown up yet so we had to pay sales tax on the extended warranty as if we had it even though we did not. My question is, now that we have been credited how can I get a refund on the sales tax for the extended warranty?

 

I dont think you can. You are chaged based on the selling price of the vehicle on the contract. When you decided you didnt want the warranty they simply deduct the amount from your amount finance... it doesnt change ont he contract. If you were to do a completely new contract then it would be different.

 

I'm afraid not! As a Missourian I , on purpose, purchased all my accessories from Bernardi so as to avoid having these items included in the purchase price. You might try and fight with the Mo dept. of revenue but I doubt they'll listen. Sorry but I don't make the rules.

 

You really didn't get a refund on your sales price; they just 'credited' it to your financing so there is no rebate; no change in the transaction price.

I'd be more interested in seeing how that credit was actually handled. Did you get a change in value of monthly payments or a reduction in the number of payments? If you didn't just how did you get the credit? Sounds fishy to me. No actual $ refund in some way is no refund.
Ask the finance at your dealer where the credit was applied. And how that changes what you owe. Try getting a receipt.
There's more to this but lets see whats happens here.
good luck.

 

First most states do not charge sales tax on an extended warranty since it is a service and not a product like floor mats.

Second if the contract has already been sent to the bank you do not receive cash back but the total amount financed will be reduced by the cost of the service contact.Examople 16000 for car 1000 for the ESC 340 per monthfor 60 months. Your payment will not change but the number of payments would be reduced, 56 at 340 and 1 at 330.

While I am not familiar with MO taxes, but in our state CO the tax would be based on cost of vehicle and any txable acces.

If the contract has not been sent to the bank you should have the option to resign minus the ESC and lower your payment.

Hope this helps

 

ditto... I did similiar thing...grabbed the contract figuring to read more later. After reading more details and saw that even if I did want one, I could get a better one elsewhere. In MN services aren't taxed... on my contract statment it shows vehicle price... then taxes...then added services (warranty). I was out the 'processing fee' on the warranty and this is fairly commonplace, that was $35 for me.

 

I did the same as OP. I live in MO and bought my car in KS. I also bought the Honda Care warranty. I could have sworn they did not charge sales tax on the Honda Care warranty but maybe they did.