A: Manufacturers of motor vehicles frequently offer cash rebates on particular models to purchasers, who then typically assign the rebates to the dealerships in order to reduce the amount the purchasers pay for the vehicles. In addition, motor vehicle dealers may offer their own discounts on vehicles. Although discounts offered by dealers may be excluded from the sales price of a motor vehicle for purposes of determining whether the sales price exceeds $50,000, rebates paid by manufacturers must be included in the sales price when determining whether the sales price exceeds $50,000, even if purchasers assign the rebates to the dealers to reduce the amount the purchasers pay for the vehicles.
This answer is intended to provide general information concerning a frequently asked question about a current position, policy, or practice associated with the taxes administered by the Connecticut Department of Revenue Services. It may include an informal interpretation of Connecticut tax law by the Department of Revenue Services (DRS). However, it is not intended to serve as a legal ruling.