Does luxury tax apply to a car I won?

July 14, 2003

Subject:  Luxury tax question
Date:  Wed, 02 Jul 2003
From:  Tiffany

I won a $50,000 car in a drawing that I entered at the mall. What is the luxury tax on that? I know that in 1999 it was 6% but I'm sure it's changed. Also, is the luxury tax an additional tax you have to pay after you have paid for the other taxes on the car? I hope that made sense because I'm totally confused. Could you please advise? Thank you.

Best regards,
Tiffany

Answer

Date:  Mon, 7 Jul 2003

Hello Tiffany,

There is no luxury tax on your car. The luxury tax expired, effective January 1, 2003.

Good luck!

Good luck!
Mike Gray

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