Sales Tax
I purchased and took delivery of a car in Massachusetts. The dealer
accepted 6% sales tax detailed in bill of sale and purchase. Also took fees
for documentary preparation and title and registration fees. This was 6%
sales tax rate as the vehicle had to be registered in Florida. Legally 5%
should have been paid to Mass and 1% to Florida, however the entire 6%
was paid to Florida. This would have been appropriate, only of I had taken
delivery of the vehicle in Florida. Being that the dealer took the sales tax
and distributed it, on my behalf, did they have an obligation to do so
according to the law? When presented with this the RMV refuses to
register my car only when I have paid Mass 5% sales tax in addition to
interest and penalties. Can I recoup these costs from the dealer, perhaps
via small claims court?
Re: Sales Tax
Yes you should be able to recover the fees from the dealer in small claims court. Problem is getting jurisdiction in FL if that is where you live. If you can sue in MA, there is no problem.
I do not know the amount of the tax and penalties, but you should make sure the amount is not more than the small claims jurisdictional amount.
Jonathan Roth
Donovan Hatem LLP
Two Seaport Lane 8th floor
Boston, MA 02210