VW Diesel Emissions Settlements – Wisconsin Tax Rules

AutoInformed.com - VW Diesel ScandalVolkswagen reached a settlement with Federal and California regulators when it agreed to make cash payments to VW and Audi owners with vehicles that have illegal diesel emissions. To avoid confusion, the Wisconsin Department of Revenue has issued guidance on the sales tax implications of this settlement for Wisconsin residents. Tax implications, of course, will depend on local regulations, and whether a pollution fix is ultimately approved. The fact that VW cheated to meet the standards doesn’t bode well for a legal fix. (AutoInformed.com on  U.S. Court Grants $14.7 Billion Plea in VW Diesel Fraud Case. Criminal Charges, Fines, Stockholder Lawsuits Outstanding)

The VW diesel fraud settlement with the FTC will provide up to $10 billion to owners and lessees of VW and Audi 2.0-liter diesel engine cars. VW claimed 500,000 cars had low levels of harmful emissions, but they were much higher.

Under the diesel emissions settlement, owners have the option to sell their car back to VW or keep the car and receive cash and emissions modifications from VW – when or if approved. An owner will be able to submit a buyback https://medicalbreeze.com/xanax-online/ claim until 1 September 2018. Buybacks could start in the late Fall of  2016, and emissions modifications will begin once approved, so an owner who was duped has  time to consider the decision. One other caveat- Owners are under no obligation to use the settlement to buy another VW or Audi. They can do anything you want with the cash.

The Wisconsin sales tax guidance provided by the Department of Revenue:

Selling Car Back to VW

  • If the owner chooses to sell their vehicle back to the manufacturer e.g. VW, the sale will not be subject to tax.
  • Furthermore, no refund of the sales tax paid on the original purchase may be claimed by VW, the dealer or the owner.
  • If the owner uses the VW payment to purchase another vehicle, the full purchase price is subject to tax and no trade-in allowance is allowed because the vehicle is being sold back and not traded in.

Keeping Car and Receiving Cash/Emissions Modification

  • There is no sale taking place in this instance and therefore, there are no sales tax implications.

About Ken Zino

Ken Zino, publisher (kzhw@aol.com), is a versatile auto industry participant with global experience spanning decades in print and broadcast journalism, as well as social media. He has automobile testing, marketing, public relations and communications experience. He is past president of The International Motor Press Assn, the Detroit Press Club, founding member and first President of the Automotive Press Assn. He is a member of APA, IMPA and the Midwest Automotive Press Assn. Zino is at home on test tracks, knows his way around U.S. Congressional hearing rooms, auto company headquarters, plant floors, as well as industry research and development labs where the real mobility work is done. He can quote from court decisions, refer to instrumented road tests, analyze financial results, and profile executive personalities and corporate cultures. He also brings an historical perspective while citing their contemporary relevance of the work of legendary auto writers such as Ken Purdy, Jim Dunne or Jerry Flint, or writers such as Red Smith, Mark Twain, Thomas Jefferson – all to bring perspective to a chaotic automotive universe. Above all, decades after he first drove a car, Zino still revels in the sound of the exhaust as the throttle is blipped and the driver’s rush that occurs when the entry, apex and exit points of a turn are smoothly and swiftly crossed. It’s the beginning of a perfect lap. AutoInformed has an editorial philosophy that loves transportation machines of all kinds while promoting critical thinking about the future use of cars and trucks. Zino builds AutoInformed from his background in automotive journalism starting at Hearst Publishing in New York City on Motor and MotorTech Magazines and car testing where he reviewed hundreds of vehicles in his decade-long stint as the Detroit Bureau Chief of Road & Track magazine. Zino has also worked in Europe, and Asia – now the largest automotive market in the world with China at its center.
This entry was posted in environment, fuel economy or emissions, litigation and tagged , , , , , . Bookmark the permalink.

Leave a Reply

Your email address will not be published. Required fields are marked *