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KY Sales Tax Changes Webinar - Shared screen with speaker view
Sarah Bishop
01:06:44
This is the chat feature if anyone needs to find it to submit questions.
Jerry
01:17:53
What about tire and wheel protection
mmadison
01:18:43
So are we taxing Indiana Customers for warranty? I'm confused
Ginger Brandon
01:19:30
Tire and Wheel are future products not something we put on the car at that time?
kim harned
01:20:13
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.
Juallena
01:21:01
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.
Chris Coffman
01:22:52
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
Rene' Jones/Titles
01:24:10
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?
Chris Coffman
01:24:30
No it does not.
Chris Coffman
01:24:58
TN requires us to send the tax to them when titling a vehicle for the warranty tax
kim harned
01:25:03
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.
kim harned
01:26:57
We do our sales tax return online due to the huge volume of Tennessee sales, so no form would work.
LeslieWarren
01:27:20
We need a form similar to 51A270 that shows these service contracts have been paid as well as using our buyer's orders
Dave
01:27:24
Why can't we use the existing certificate?
Rene' Jones/Titles
01:28:12
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?
mmadison
01:31:14
our buyers order doesn't show warranty. So do we need to have it added?
Rene' Jones/Titles
01:32:44
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.
mmadison
01:32:52
we charge the tax it just doesn't show
CRAIG SIMON
01:33:06
Are the doc fees and silent guard a sales tax item and not a usage tax item?
Check Wilson
01:35:37
Key Replacement and similar coverages where nothing is done or added to the vehicle. Sales or Use tax?
Dave
01:35:51
Can we use the sales tax certificate paid for the esp tax?
Mark
01:36:52
Are we talking about loaners or just rentals?
Jill Davis
01:39:31
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?
kim harned
01:40:32
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?
Jill Davis
01:41:47
If service loaner rental is paid by a factory under warranty, is that subject to the new rental excise tax?
Jill Davis
01:42:15
Or is that considered non-taxable warranty work
Catherine Zimmer
01:44:11
If the rental is paid by a service contract or warranty do we still need to collect tax?
Chris Coffman
01:45:34
Warranty work is NON-taxable. So hopefully you can get Revenue to understand the rental should NOT be taxable wither.
LeslieWarren
01:51:55
Can we get a copy of this powerpoint as a reference?
Chris Coffman
01:52:43
YOU have to PAY the warranty tax to title the vehicle and record the lien
Chris Coffman
01:52:49
It is NOT up to the customer
kim harned
01:53:33
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.
Chris Coffman
01:53:34
The lienholder MUST be recorded
Jason Wilson
01:53:42
We’ll send the recording of this webinar and a copy of the presentation afterwards
Chris Coffman
01:54:13
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
Chris Coffman
01:55:24
We do NOT have a choice.
kim harned
01:55:39
If we don't collect both, the dealership will lose a ton of money over time.