I need to make sure I'm phrasing the question correctly so comment if I'm not...

Scenario 1

Purchase Road King Special
Purchase add-on item (Stage 1) - dealer installed
Purchase tank bra - self install

Scenario 2

Purchase Road King Special
Purchase add-on item (Stage 1) - self install
Purchase tank bra - self install

In both scenarios you roll the cost of the items being purchased / installed into the total cost of the bike. Are you paying local sales tax on the add-on items if you self install? Or is it all being rolled into the cost of the bike as overall cost.

This makes a difference on what taxes you're paying to the state on either the vehicle or the accessories, in this case, Tennessee. If it's an installed part on the sale, I assume it's part of the bill of sale that is presented when registering the vehicle and paying the sales tax on the vehicle. If it's an accessory though that is purchased separately as you're installing it yourself, it's taxed at the higher rate?

 

 

 

Are you kidding me? Are you for real? Really,,, and you own a Harley and your concerned about tax in the single dig? As HD and one of there dealers is screwing the crap out of you to start with? And your worried about tax??? What a loser. I bet your cheap *** tries to write off a toy run.

 

not that you're looking at a lot of money there, but here in la, if you buy parts and accessories at the same time as the bike, they are rolled into the cost of the bike and you pay sales tax on that amount. and you don't have to have the dealer install such items, though if you don't, then they don't fall under the 2 year bike warranty.

 

Are you financing the cost of the accessories with the bike or not?

Don't forget there is tax on labor if they do the install.

Look at the cost of the accessories. Look at the two different tax rates you think you are dealing with.

Whatever the difference in those two percentages can be used to multiply times the cost of accessories and labor and that will be what you are wringing your hands over. It's going to be a small number but I do agree that there is nothing wrong with saving a buck or two where you can.

If you are smart you are getting the accessories at a 20% discount and if you are lucky you are getting a cut on the labor.

 

Is there a differential in the tax rates in your state?

Here in Nebraska, it wouldn't matter. Everything is taxed at the same rate, so it would work out the same either way.

 

Same here in New York State. You are taxed on the final sales price when you register it in your name for the first time. That's why I bought all my add-ons after I registered it. So I was not double-taxed on the add-ons.

When I bought a metric cruiser back in 1999, the Canadian dealer knew this so he made two receipts, one for the bike and one for the add ons. I payed sales tax on the bike's price only. That was one of my first lessons in bike buying.

 

yes, essentially 9.75% sales tax depending on the county (7% base rate and counties can add up to 2.75%) so on $3k worth of parts that would be nearly $300 but vehicles are taxed at a rate of 7% up to about the first $6,000 I think so on a $25,000 purchase you're paying $1,800 in taxes on the vehicle sale.

So depending on the amount of add-ons purchased separately or bundled into the sale price of the bike can impact the number of dollars spent on taxes. Adding in labor and the subsequent tax also impacts the bottom line.

 

Though thought by many otherwise,not every HD owner is "rolling in the dough". And can afford to put every knick knack accessory on their bike from led lights to fender skirts.. Some of us try to save every buck we can!!