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Asked: Jun 12, 2008 - 10:06 AM
Status: Closed
andreaquigley
Can dealerships charge sales tax on document fees?
I live in Evergreen Park, IL and bought a car from the city in which I live. I was going over the paperwork and realized I was charged sales tax on the document fee. Is this legal? Thanks for your response.
In Buying & Selling > Car Buying > Taxes In Buying & Selling > Car Buying > Fees2 answers - 506 days ago
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sylvia
Date: Jun 12, 2008 Time: 02:36 PM
Yes, the dealership can add sales tax onto the documentation fee as it is part of the transaction. However, you should be aware that in the state of Illinois the amount a dealership can charge for the documentation fee is capped. You can refer to the chart at the bottom of the page about fees when buying a car.
sergelbergeron
Date: Jul 06, 2008 Time: 03:30 PM
On any tax question - it is good to call the sales tax office. Businesses charge taxes and they are all returned to the governments. So if there is an error, the dealer doesn't benefit - it is the government. So it is in the interest of the dealer and the consuimer to not overcharge something like this. Also some places just charge tax on everything so they don't get caught undercharging.
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