Volkswagen 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.