Chrysler to Connecticut: Don't Tax Our Lemons!

Robert Farago
by Robert Farago

Like most U.S. states, Connecticut has a "lemon law" for consumers who buy a defective vehicle. In the Constitution state, the offending manufacturer must provide a refund or a comparable new vehicle AND reimburse buyers for certain other charges, including sales taxes. Chrysler wants that tax money back, even though its paid by the consumer (not the manufacturer) and a superior court judge said go sing. The RepublicanAmerican reports that Connecticut's Attorney General is not amused by Chrysler's decision to take its case to the state supreme court. "It could be called the height of chutzpah for a car manufacturer that sells a defective car to seek repayment for the tax paid by the consumer," Richard Blumenthal kvetched. Chrysler spokesperson Elaine (no relation) Lutz says the state's picking on carmakers. "Connecticut retailers are entitled to reimbursement of sales tax on refunds to consumers. Chrysler is asking… for the same treatment." You'd think Chrysler would want to keep stum about its lemons, but there are millions of dollars at stake. Oy.

Robert Farago
Robert Farago

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  • GS650G GS650G on Sep 05, 2007
    gotta agree with chrysler on this one. why are they responsible for returning the tax money which went to the state? the state should give the taxes back to chrysler so that they can refund it to the consumer. Your assuming dealers and Chrysler intend to refund it to the customer. Where is the mechanism for that to happen. The state should send it to the customer, provided they got a refund and not another car. If they were unlucky enough to get another 5 star product then no refund (or mercy for that matter)
  • Omnivore Omnivore on Sep 05, 2007

    GS650G: the article says that the CT Lemon Law requires that manufacturers refund the sales tax to the purchaser. That's the mechanism.

  • MaxHedrm MaxHedrm on Sep 05, 2007
    Your assuming dealers and Chrysler intend to refund it to the customer. Where is the mechanism for that to happen. The state should send it to the customer, provided they got a refund and not another car. If they were unlucky enough to get another 5 star product then no refund (or mercy for that matter) It said right in the article that they are required to refund it by the lemon law. The Consumer paid it to the state, yet Chrysler is being required to refund it to the Consumer. The state gets to keep their tx dollars for a sale that they required the manufacturer to refund. So, yeah, I tend to side with Chrysler too.
  • Kansei Kansei on Sep 05, 2007

    Are there a bunch of ttac writers living in CT? There seem to be a ton of CT stories, which isn't something you see anywhere else online. I only notice because I'm from CT originally

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