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I <heart> NY

In the US, there's a quirk in the federal tax system that lets small business owners (including doctors, lawyers, and the like) claim a fairly sizeable tax credit for vehicles over 6,000 pounds which are used for business purposes. The original intent was to give farmers a break on tractors, combines, farm trucks, and the like, but in recent years, it's become a huge handout to rich yuppies, because the tax break for a top-tax-bracket person can equal or exceed the cost of the vehicle. Which is why the Lincoln Navigator, Ford Expedition, Hummer, and the like are suddenly so popular on US roads.

It turns out that New York has a special state tax to recapture this, thereby ending the free monster SUV handout, if only in one state.

Comments

( 3 comments — Leave a comment )
eeyore_grrl
Apr. 13th, 2004 11:18 pm (UTC)
Yay. says the EX new yorker (though i am still carrying my invalid ny license in my wallet....).
ysabel
Apr. 14th, 2004 09:45 am (UTC)
Hrm. I need to look into this, clearly, as we do in fact use our Expedition to haul Amy's art stuff around. (Yes, I have an Expedition. #2, in fact. It does an extremely good job of satisfying our requirements, though.)

Though I don't know that the Expedition is over 6k pounds. Might have to consider something else, though, if Amy's art business really takes off.
krasota
Apr. 14th, 2004 10:49 am (UTC)
Virginia has a car tax. There *is* car tax relief (that's what the state used the tobacco settlement money for), but it doesn't apply if your vehicle is over 6000 pounds and is used at least 1/2 the time for business. Would that also recoup some of the money?

The H2 and other monster SUVs are VERY popular here. There are a lot of rather wealthy people here, too, many of whom own country estates. When those country estates incorporate antebellum (or slightly post-civil war, as many of them were burned) mansions and one sees black angus grazing in the pasture, one doesn't think "oh, heritage farm!" so much as "nice tax shelter".



( 3 comments — Leave a comment )