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When:
January 01, 2003

Who it Affects:
For taxpayers who buy luxury cars and other expensive items.
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2003 Tax Law Changes
Remember the luxury tax? It's gone

For taxpayers who buy expensive cars and boats.

Got a hankering for a bigger, really expensive car? Enjoy. Starting in 2003, there's no more luxury tax.

In 2002, the luxury excise tax rate fell to 3% of the amount by which the sales price exceeded $40,000. The change means that, if you were lucky enough to afford a $50,000 car in 2003, your luxury tax comes to $0.

In other words, you just saved $300 -- the tax you would have paid if you'd bought the vehicle in 2002.
Related Tax Article(s): How to save $10,000 on your next car