Department Of Motor Vehicles Errors In Calculating Sales Tax On Hundreds Of Luxury Cars
The state Department of Motor Vehicles will have to refund more than $100,000 to owners of luxury cars across the state because of a computer error that went undetected for more than a year. Hundreds of car owners will receive refunds, others will be billed for underpaying.
About 1,200 luxury cars — which the DMV defines as any vehicle that sold for more than $50,000 — were incorrectly taxed between August 2015 and January 2018, according to DMV records. Some taxpayers paid too much, others too little.
DMV officials, working with the Department of Revenue Services, plan to send letters to the affected taxpayers “shortly.”
The letters will include an explanation of the tax calculation error and identify the vehicle by VIN and plate number. If an underpayment was made, the car owner will have 30 days to pay the difference — even if they no longer own the vehicle.
To correct the problem going forward the DMV has installed new sales tax calculators in every branch office to automate the calculation of the tax.
DMV officials then did a more thorough audit that included all of 2017 sales tax data as well. DMV officials said the review is continuing and they are working with DRS officials to prevent this from occurring again.