Can I get sales tax refunded if I purchase a vehicle and then total the vehicle in an accident soon after the purchase date?
No, a sales tax refund won’t be granted in this situation. Sales tax is a “transaction tax”, meaning it is a tax on the SALE of the vehicle, not the vehicle itself. If a vehicle is destroyed after the transaction, it doesn’t affect the sales tax on the transaction. Please see Tax Commission rule R865-19S-2. Nature of Tax for more information.
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