English: 16-Hour New License Auto Dealer Course
Local Option Taxes
assessment
New Dealers
Local Option Taxes or Discretionary Surcharges are levied by the individual counties. These charges may vary by county and it is important for dealers to know the different rates when they sell a vehicle. The amount of surcharges will depend on the county where the vehicle will be registered, regardless of the county where the dealer is located.
Local option surcharges are only taxed on the first $5,000 of the vehicle taxable base. For example, a county imposing a .5% surcharge will only charge a maximum of $25 ($5,000 X .5%). The taxable base for these surcharges is the same as the sales and use taxable base.
Now that we understand Sales and Use, and Local Option taxes, we can begin to apply them.
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Course
English: 16-Hour New License Auto Dealer Course
Author
Joaquin Jimenez
Instructor
