State is Arizona.
I purchased a new car recently, I also purchased a contract which covers minor dent repairs; I now want to cancel the dent repair contract. Per the fine print, after 30 days, the contract is still cancellable through the (out-of-state) dent repair coverage company, less a cancellation charge and a pro-rata adjustment. I am preparing to write the dent repair coverage company to request pro-rated refund for the cost of the contract.
What puzzles me is that the car dealer included the contract as a line item subject to state/county/city sales taxes just as is done for price of the car. Should that have happened or should the contract not have been subject to the sales tax? I'm worried that the dent repair coverage company will balk at refunding state sales tax on the cost of their contract, especially if the car dealer made a mistake and wrongly included the coverage as a taxable item. I'm used to hearing that labor and services are not subject to sales tax and it would seem this falls into that category.
So 2 questions:
- Is it proper that the dent repair contract was subjected by the car dealer to Arizona+county+city sales tax?
- If the taxation was correct, will the dent repair company handle refunding the pro-rated portion of the tax paid; if wrongly assessed, will they still take care of it or do I have to sort it out with the car dealer?
Thanks for any assistance!
I purchased a new car recently, I also purchased a contract which covers minor dent repairs; I now want to cancel the dent repair contract. Per the fine print, after 30 days, the contract is still cancellable through the (out-of-state) dent repair coverage company, less a cancellation charge and a pro-rata adjustment. I am preparing to write the dent repair coverage company to request pro-rated refund for the cost of the contract.
What puzzles me is that the car dealer included the contract as a line item subject to state/county/city sales taxes just as is done for price of the car. Should that have happened or should the contract not have been subject to the sales tax? I'm worried that the dent repair coverage company will balk at refunding state sales tax on the cost of their contract, especially if the car dealer made a mistake and wrongly included the coverage as a taxable item. I'm used to hearing that labor and services are not subject to sales tax and it would seem this falls into that category.
So 2 questions:
- Is it proper that the dent repair contract was subjected by the car dealer to Arizona+county+city sales tax?
- If the taxation was correct, will the dent repair company handle refunding the pro-rated portion of the tax paid; if wrongly assessed, will they still take care of it or do I have to sort it out with the car dealer?
Thanks for any assistance!
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