What is the name of your state (only U.S. law)? PA
PA charges 9% tax on car leases. This 9% is comprised of two components: 6% traditional PA Sales Tax and 3% Use tax.
When my car lease concludes, I have to pay a $350 "Disposition Fee" when I return the vehicle. This fee is purported (by Audi Finance) to cover the costs associated with inspecting/receiving the vehicle and doing whatever they do to dispose of the vehicle. This fee has nothing to do with mileage overage.
I expected to be charged 6% sales tax on this fee, not 9%. I was surprised when Audi Finance told me differently (over the phone). I told them I disagreed with the 9% charge b/c disposing of the vehicle should not be covered under the use tax. They disagreed. I contacted the office of the General Counsel at the PA Dept of Revenue. They agreed with my conclusion and said that when I receive an actual invoice from Audi, I should forward it to them with my dispute and they would issue a formal ruling in writing. I could then present this to Audi have my tax liability reduced.
We are only talking about $10.50 for me, so my issue is really about the principle of the matter.
Let's assume (big assumption here) that when I get the bill, it really does show a 9% charge, not 6%.
If so here is my question, is there a class action opportunity here for this improper tax that Audi has been charging (and passing on to the state of PA)? I know I won't get anything out of it, but some smart lawyer might make some money on this? Who would be sued? PA? Audi? Both? Other car companies who are doing the same (assuming there are any)?
PA charges 9% tax on car leases. This 9% is comprised of two components: 6% traditional PA Sales Tax and 3% Use tax.
When my car lease concludes, I have to pay a $350 "Disposition Fee" when I return the vehicle. This fee is purported (by Audi Finance) to cover the costs associated with inspecting/receiving the vehicle and doing whatever they do to dispose of the vehicle. This fee has nothing to do with mileage overage.
I expected to be charged 6% sales tax on this fee, not 9%. I was surprised when Audi Finance told me differently (over the phone). I told them I disagreed with the 9% charge b/c disposing of the vehicle should not be covered under the use tax. They disagreed. I contacted the office of the General Counsel at the PA Dept of Revenue. They agreed with my conclusion and said that when I receive an actual invoice from Audi, I should forward it to them with my dispute and they would issue a formal ruling in writing. I could then present this to Audi have my tax liability reduced.
We are only talking about $10.50 for me, so my issue is really about the principle of the matter.
Let's assume (big assumption here) that when I get the bill, it really does show a 9% charge, not 6%.
If so here is my question, is there a class action opportunity here for this improper tax that Audi has been charging (and passing on to the state of PA)? I know I won't get anything out of it, but some smart lawyer might make some money on this? Who would be sued? PA? Audi? Both? Other car companies who are doing the same (assuming there are any)?