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If your dealership is located close to a state border or if you’ve expanded your operations and own dealerships in multiple states, you are well aware of the pain that comes with trying to figure out the correct sales tax to charge to your customers that are in different states. You are also familiar with customers that try to convince you of when tax should or shouldn’t be charged so they can get an overall price from you that is “cheaper” than what they can get from a dealer in a different state. The confusion and related customer pressures are very real because every state has different laws in this area and the Supreme Court has established rules to “guide us” that are incredibly complicated. Unfortunately, we can’t just ignore the issue because as states get more aggressive in capturing sales tax, dealers can be caught in the cross-hairs and face tax bills and penalties/interest in the hundreds of thousands of dollars.

 

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