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When:
January 01, 2001

Who it Affects:
For taxpayers who buy luxury cars and other expensive items.
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2001 Tax Law Changes
Luxury excise tax wont sting so much in 2001.

For taxpayers who buy expensive cars and boats.

Got a hankering for a bigger, really expensive car? Theres a bit less sting in 2001 from the federal luxury excise tax. The rate fell to 4% of the amount by which the sales price exceeds $38,000 from 5% in 2000.

The tax rate falls again to 3% in 2002 on amounts over $40,000 and expires in 2003.

Related Tax Article(s): How to save $10,000 on your next car