Business

Sticker shock: Determining the sales tax for a new car

Passenger CarsServices and ShoppingVehiclesSmart Car

Robin is buying a new car. Like all car buyers, she's done her best to haggle the price down.

Now, she says, she's being told that she has to pay sales tax on the full sticker price of the vehicle, rather than the discounted price.

Robin asks: Is that kosher?

ASK LAZ: Smart answers to consumer questions

When you buy a cellphone in California, you're taxed on the full retail value of the device instead of the much lower subsidized price you actually pay.

As for cars, I had to check on this one with the State Board of Equalization. For their response, check out today's Ask Laz video.

If you have a consumer question, email me at asklaz@latimes.com or contact me via Twitter @Davidlaz.

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