Auto Excise Tax Deduction on Federal Tax Return
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On Feb. 17, President Obama signed the American Recovery and Reinvestment Act of 2009, which includes auto
ownership tax assistance for many new-car buyers.
(Click for NADA story)
First Hawaiian International Auto Show
Dare to dream...about when this will all be over.
A Honolulu publisher being told that dealers think this will not be a
U-shaped recovery but an L-shaped one, said “Oh yeah, what font?”
With everyone’s attention on the recession lately, some now are starting to look for the recovery. The National Bureau of Economic Research (NBER) has now declared this recession official; it started December 2007.
Auto dealers know recessions don’t last forever. In fact, the dozen recessions in America since the Great Depression have lasted on
average10.4 months. But the nation is already into this one deeper—15 months--as of March, and counting.
The two national recessions that Hawaii auto dealers most recall are 1973 and 1981—both 16 months in duration.
Dealers like Joe Nicolai recall that the 1973 recession was precipitated by troubles in Iran and the subsequent Arab oil embargo.
Soon, there followed a 400% increase in American gas prices and gas rationing.
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NADA
Dealers, Congress, and CAFÉ
Dealers Oppose Multi-State Fuel Economy Rules
For info click here
HADA Proposes a Cool Plan
Cruel Plan vs. Cool Plan
Oahu’s traffic will worsen after the rail according to the City’s analysis
What’s unfair about the Current Transportation plan is it seeks to boost use of the rail system by making roadway use miserable. This plan is particularly cruel to longstanding users of the express bus, who, in just a few years, will be force into taking grinding two-hour commutes, as the express buses share the limited highway lanes with jammed up single-occupant vehicles.
In this regard the single-solution (rail only) plan is particularly cruel.
Click here for complete story.
Hawaii’s New Car Dealers Elect New Officers and Directors for 2009
Wailea, Maui—The members of the Hawaii Automobile Dealers Association, Hawaii’s franchised new car dealers, elected a new set officers and directors for 2009 at the association’s annual meeting.
Click here for Officer and Director list.
The history of a tax that finally ended July 1, 2008
The Supreme Court Ruling
In a 1972 decision, the Tax Appeal Court, in the case of 711 Motors, Inc. ruled that an automobile dealer was not taxable on reimbursements received from a manufacturer for the dealer’s costs incurred in making good the manufacturer’s warranty on cars sold.
However, this ruling was reversed in 1973, in the Aloha Motors case. And in 1975, the Hawaii Supreme Court upheld the Aloha Motors ruling and said that payments received by automobile dealers from manufacturers for warranty service to customers are taxable sales.”
Excerpts-- Taxes of Hawaii 2008
by Aileen Utterdyke
Throughout the rest of the 70’s, the 80’s, the 90’s and up until July 1, 2008, in this decade, Hawaii dealers have been paying the 4% tax on the warranty payments from a manufacturer to fulfill a new car warranty.
On July 1, 2008—the tax was reduced to the half percent rate by ACT 89.
Click here for complete story.
Joe Nicolai’s helpful reminder
HADA legislative chair, Joe Nicolai, who was also instrumental in another helpful tax reduction bill for businesses, reminds dealers that the unemployment tax measure that passed last year, went into effect at the start of this year, lowering the wage base set for the unemployment tax from $34,000 down to $13,000.. Dealers should ensure that they are not still paying unemployment tax on the higher 2007 wage base.
