I want to make folks aware of an interesting development at the federal government level. It may provide you with some handy holiday savings. But it also raises a couple of questions I'd like your help in addressing.
Yesterday, U.S. Senators Patty Murray of WA and Olympia Snowe of ME introduced a bill to suspend sales tax for a 10-day period beginning the day after Thanksgiving. The purpose of this measure is to provide extra economic stimulus at the beginning of the key holiday buying season. Why do I bring up this proposal here (and not in the Off-Topic forum)? Because if this sales-tax-holiday measure passes (a BIG if), it would have a considerable impact on many folks like myself who expect to take delivery in the coming days of a new 2002 MDX.
To use a personal example, my 2002 Tour/Nav MDX will soon be delivered. I have a contract to buy it at MSRP ($39,300), plus $480 transportation charges and $270 in required options. That brings the car's price to $40,050.
In California, there is a state sales tax rate of 7%. Many counties and cities supplement this rate with local sales tax levies. Rates of 7.5% and 8% are not uncommon. (The top rate is 8.5% in the city of Avalon on Catalina Island off the Southern California coast. But I digress...)
The sales tax rate in Sonoma County is 7.25%. Therefore, I would save a bit over $2,900 if the Senators' plan is approved.
I'll be delighted to take that $3K and spend it on other car goodies -- to help the economy of course!

(I'm pretty far into that amount already, given the pile of boxes I've received from Tim and Zaino! But I digress again...)
But I see a problem with this sales-tax-holiday plan. Who would buy a car in the three weeks before Thanksgiving if they could save a bundle by buying the same car in the 10 days after that holiday? Clearly, this issue will be faced by all car dealers in the 45 states which levy sales tax. How will dealers maintain current sales until the tax-holiday begins? Note that this is an issue now while the tax holiday is being debated, even if the proposal is ultimately defeated.)
Let me express this dilemma somewhat differently, and much more personally: What happens if the car I've been waiting for since July arrives as planned about November 10th and my dealer isn't willing to hold it for me for two weeks??? Do I pay the money -- including the tax -- I had always planned to pay and take the car? Do I bail on that long-awaited 'X and try to get one elsewhere? Do I try to get the dealer to post-date the sales paperwork to the 24th, perhaps by giving him a valid check for the full amount (less sales tax) ???
If possible, I'd like to hear the opinions of regular members and of dealer-members. Many thanks!!!
--Marne
Yesterday, U.S. Senators Patty Murray of WA and Olympia Snowe of ME introduced a bill to suspend sales tax for a 10-day period beginning the day after Thanksgiving. The purpose of this measure is to provide extra economic stimulus at the beginning of the key holiday buying season. Why do I bring up this proposal here (and not in the Off-Topic forum)? Because if this sales-tax-holiday measure passes (a BIG if), it would have a considerable impact on many folks like myself who expect to take delivery in the coming days of a new 2002 MDX.
To use a personal example, my 2002 Tour/Nav MDX will soon be delivered. I have a contract to buy it at MSRP ($39,300), plus $480 transportation charges and $270 in required options. That brings the car's price to $40,050.
In California, there is a state sales tax rate of 7%. Many counties and cities supplement this rate with local sales tax levies. Rates of 7.5% and 8% are not uncommon. (The top rate is 8.5% in the city of Avalon on Catalina Island off the Southern California coast. But I digress...)
The sales tax rate in Sonoma County is 7.25%. Therefore, I would save a bit over $2,900 if the Senators' plan is approved.
I'll be delighted to take that $3K and spend it on other car goodies -- to help the economy of course!
But I see a problem with this sales-tax-holiday plan. Who would buy a car in the three weeks before Thanksgiving if they could save a bundle by buying the same car in the 10 days after that holiday? Clearly, this issue will be faced by all car dealers in the 45 states which levy sales tax. How will dealers maintain current sales until the tax-holiday begins? Note that this is an issue now while the tax holiday is being debated, even if the proposal is ultimately defeated.)
Let me express this dilemma somewhat differently, and much more personally: What happens if the car I've been waiting for since July arrives as planned about November 10th and my dealer isn't willing to hold it for me for two weeks??? Do I pay the money -- including the tax -- I had always planned to pay and take the car? Do I bail on that long-awaited 'X and try to get one elsewhere? Do I try to get the dealer to post-date the sales paperwork to the 24th, perhaps by giving him a valid check for the full amount (less sales tax) ???
If possible, I'd like to hear the opinions of regular members and of dealer-members. Many thanks!!!
--Marne