Friday, February 24, 2012

Im buying a car in virginia but live in PA, on the invoice there is a fee for "Dealers Business License Tax" of $44.24.

What is this tax?
Am I required to pay this fee or is this another "Processing Fee" they try to slip by ya?|||If you will be paying PA sales tax and registering the vehicle in PA yourself, the only fees to which you should be subject are any temporary registration the dealer provides and locally-imposed taxes like "tire taxes" and, of course, the dreaded "notary and documentation fee" (read "additional dealer profit").

In the case of the Virginia Dealer Business License Tax, according to the Commonwealth Motor Vehicle Dealer Board, the cost of this tax MAY be passed-along to customers if:

If it is listed as a line item on the Buyer鈥檚 order.
If the charge represents the exact amount relative to the sale.
If the local city, county, or town charges such a tax.

You can find the relevant regulation described here:

http://www.mvdb.virginia.gov/pdfs/MVDB34鈥?/a>

While it's up to you whether to knuckle-under on paying a tax that isn't necessarily levied upon the sale of a particular vehicle and the dealer trying to recoup as part of a greater business expense, I'd say its as reasonable to ask you to pay their licensing fees as it would be for you to deduct the cost of your driver license and insurance.

Best of luck. I hope this helps.

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