Nebraskans have to pay sales tax on cash for clunkers vouchers

This situation might be exclusive to Nebraskans. Then again, maybe it isn't. The Omaha World-Herald explains:

Beware, Nebraska taxpayers: You will be getting a final "clunk" on your tax bill after turning in your clunker vehicle for federal cash.

Nebraska law requires including the value of such third-party rebates in the purchase price of a new vehicle for tax purposes.

Thus, Nebraskans must pay sales tax on the value of the "cash for clunkers" voucher issued to car dealers in the federal incentive program, State Tax Commissioner Doug Ewald says.

That means $192.50 in added state sales taxes if you got $3,500 for your clunker, and $247.50 if you got a $4,500 voucher.

But as a car salesman will tell you, "That's not all!" If you live in one of the 67 Nebraska communities that charge their own sales tax, you are compelled to pay an additional 1.5 percent in sales tax. Omaha, the state's largest city, is one of those towns.

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