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I am thinking about buying an SUV next year and I hear this may subject me to the luxury auto tax. What is this tax and how is it calculated (i.e. final purchase price, suggested retail price, before taxes, etc.)? Thanks in advance.
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No. of Recommendations: 0
I am thinking about buying an SUV next year and I hear this may subject me to the luxury auto tax. What is this tax and how is it calculated (i.e. final purchase price, suggested retail price, before taxes, etc.)?

I believe that the tax is currently 5% of that portion of the purchase price that is over $38,000. It drops to 4% on 1/1/2001, 3% on 1/1/2002, and 0% on 1/1/2003. I don't know if the threshold changes.
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