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New York Governor David Paterson needs to close a $15.4-billion budget deficit, and has proposed 88 new fees and taxes to do it. One of them is aimed at New York car buyers: a 5% tax on all cars sold for $60,000 or more. Notice the phrasing "sold for," not "MSRP of". That means if you add $8,001 in options to a $52,000 car, then you can add 5% to the final price. Intriguingly, the proposed new luxury tax on yachts doesn't happen until a buyer crosses the $200,000 mark, and not until $500,000 for planes. The bill would need to be passed by the legislature, but we can imagine that luxury car dealers in Connecticut and New Jersey are watching this one closely.

[Source: Automobiles Deluxe]


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  • 49 Comments
      • 6 Years Ago
      This is pretty inane, and punitive. But hey, be happy you aren't buying said car in Chicago and live in the city proper. Taxes here are 10% on everything. NYC last I checked was 8.5.
      • 6 Years Ago
      Disgusting. Do commies rule N.Y. these days?
        • 6 Years Ago
        "Most rich guys don't buy expensive cars...they buy low cost, regular cars like Malibu and accord.."

        This statement is utterly inane. Beyond a certain point (maybe 60k is too low given loans in the past few years) rich people are the only ones who can afford expensive cars.
        • 6 Years Ago
        I'm inclined to believe that they do. I'm a New Yorker and all I been hearing lately is threats to raise our living costs (property taxes) following the failed plans to put tolls between Manhattan and other boros - effectively taxing all drivers entering the boro.

        Why tax expensive cars? Most rich guys don't buy expensive cars...they buy low cost, regular cars like Malibu and accord. If they don't like the taxes, all they'd be doing is hurting the sales of these companies. This is ridiculous.
        • 6 Years Ago
        yes why do you think they took away their citizens right to bear arms
        • 6 Years Ago
        Commies? No . Liberal socialists .
      • 6 Years Ago
      I have no problem with the 5% tax on luxury cars above "x" price (whatever that may be - it's arbitrary), but you're telling me there is NO luxury tax on yachts and planes until a certain "x" price!?

      What the he(ck)!? I am an Alex P. Keaton, Reaganomics, capital "R!" Republican, and even I have enough brainpower to figure out that yachts and planes are something EVERYONE can absolutely do without.

      Hey, NY, if you're going to send a message, make it consistent, OK? And if you really, Really, REALLY want my opinion (which, you must, since this is an open-comment forum) leave "luxury" cars alone and TAX THE EVER-LOVING SNOT OUT OF THE YACHTS AND AIRPLANES!
      • 6 Years Ago
      I'm sure that New York State will get their 5% no matter where
      someone buys the car. Taxes are always paid on a vehicle based on
      where you live and not where you buy. I'd be curious to know how much
      money the state thinks they will get from 5% on cars that most of the
      population doesn't buy.

      • 6 Years Ago
      This is disgusting. Increasing taxes on the rich never solves anything - it creates more hassle. Why not increase the tax percentage on the state income tax on the lower tax brackets? Let those menaces to society carry some of their weight.
        • 6 Years Ago
        taking a second to think, why are they "menaces" as you put them and on the lower tax brackets? NO MONEY - you sir, turn off the computer, no internets for you.
      • 6 Years Ago
      God forbid that New York consider tightening its belt and spending within its means like the rest of us have to.

      In 2000 the NY state budget was $77B. In 2005 it was $105B. This year it was $127B.

      And they 'need' this massive package of tax hikes on everything and the kitchen sink so they can spend $121B next year. A mere 150% of the level of spending of just 9 years ago won't cover it, they need 160% and anything less would be a brutal cut and the trains would stop running. Please.
        • 6 Years Ago
        I'm waiting for the tax tax. A 10% surcharge for processing the tax that you are paying.
      • 6 Years Ago
      Tax, tax, tax, tax, tax.......that's all Democrats know how to do. Cutting spending is off the table, of course.

      Very soon more than half of voters will be paying little or no tax and those people will vote tax increases on the rest of us. Why not? Vote for somebody else to give you free stuff--the formula for Democrat success, right?

      Oh, and those pesky unintended consequences like the job losses at luxury car dealers and others when luxury car sales fall in the tank.

      Remember the tax on yachts and what that did to the boat business? Democrats never learn!
      • 6 Years Ago
      Meh its not like a luxury tax is going to affect me ether way.
      • 6 Years Ago
      Won't really matter for NYC dealer, tax is assessed based on where the car is going to be registered, not where it is purchased. If a car is purchased in NYC by a New Jersey resident, he could arrange with the dealer to only pay NJ tax on it.
      • 6 Years Ago
      lol, that "Can I get it for $136,000 and pay for the wheels later?" was pretty funny...
      • 6 Years Ago

      If N.Y. squeezes the "wealthy" too much, the wealthy will squeeze themselves right out of N.Y. Then say bye, bye to 80% of the tax revenue stream.
        • 6 Years Ago
        No, the truely rich stay rich because they don't waste thier money.

        Remember, you can only tax income, not WEALTH (as much as the Liberals would like to).
        • 6 Years Ago
        The true rich stay rich because they know how to squeeze every last exemption and tax loophole.

        The masses who are ignorant of the thousands of pages of tax code, however, get punished.

        Makes sense, eh? Yea didn't think so.
      • 6 Years Ago
      i would hope (for the dealers' sake) this tax would be applied to anyone registering in the state, regardless of where it was purchased, like sales tax. if the tax was based on the state of purchase then that would be terribly unfair to car dealers in new york.
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