This is the chat feature if anyone needs to find it to submit questions.

What about tire and wheel protection

So are we taxing Indiana Customers for warranty? I'm confused

Tire and Wheel are future products not something we put on the car at that time?

Tennessee charges sales tax on extended warranties. So would Kentucky dealers pay 6% to Kentucky, and then have to pay 9.5% (counties vary) to Tennessee? We are a border county so we do a lot of business in Tennessee.

What about if you are selling a service contract to a customer in a state like Tenneesse, that tax the extended warranty on 7%? Do we keep the 6% and send the 1% to Tenneessee? Or keep all in Kentucky.

KY needs to have a form then to send to Tennessee to let them know. If not a TN customer will have to pay 6% here and the 7-9% there. It is going to keep TN customers from coming to KY

The state of TN request on their Bill of Sale if the customer purchased a warranty or not. if so, customer has to pay 9.75% at the time of licensing in TN. How do we keep the customer from paying tax on warranty twice?

No it does not.

TN requires us to send the tax to them when titling a vehicle for the warranty tax

Tennessee said in an email to me that their sales tax laws have not changed and they expect the full tax on extended warranties not the difference.

We do our sales tax return online due to the huge volume of Tennessee sales, so no form would work.

We need a form similar to 51A270 that shows these service contracts have been paid as well as using our buyer's orders

Why can't we use the existing certificate?

Should we not list the warranty purchase on the TN Bill of Sale, since we have collected the KY tax? Or is this illegal not to list?

our buyers order doesn't show warranty. So do we need to have it added?

If the Warranty is listed on the TN Bill of Sale, they will not license the vehicle without paying their 9.75% tax. This will cause the customer to pay tax in both states, per TN clerk.

we charge the tax it just doesn't show

Are the doc fees and silent guard a sales tax item and not a usage tax item?

Key Replacement and similar coverages where nothing is done or added to the vehicle. Sales or Use tax?

Can we use the sales tax certificate paid for the esp tax?

Are we talking about loaners or just rentals?

If we finance certain leases internally, and the vehicle was first leased in a prior year, is the excise tax now due for January payments? What form do we remit that on? How do we get registered for the excise tax?

Going back to extended warranties, if Tennessee's laws have not changed, and I have to pay Kentucky as well, do we charge the customer 15.5% (combined total) to keep the dealership from losing money?

If service loaner rental is paid by a factory under warranty, is that subject to the new rental excise tax?

Or is that considered non-taxable warranty work

If the rental is paid by a service contract or warranty do we still need to collect tax?

Warranty work is NON-taxable. So hopefully you can get Revenue to understand the rental should NOT be taxable wither.

Can we get a copy of this powerpoint as a reference?

YOU have to PAY the warranty tax to title the vehicle and record the lien

It is NOT up to the customer

If the vehicle has a lien, there is no way we would let the customer handle it themselves as it all goes together and we have to in trust with the bank.

The lienholder MUST be recorded

We’ll send the recording of this webinar and a copy of the presentation afterwards

Again, it is NOT up to the customer, we must complete our obligation to the lienholders and record the lien, therefore, the only way to do it IS to collect both KY and TN tax on the warranty

We do NOT have a choice.

If we don't collect both, the dealership will lose a ton of money over time.