12-01-2009, 09:02 AM | #1 |
Administrator
Join Date: Nov 2007
Posts: 14,869
|
News report - Manteca Dodge owes $853K in Sales Tax
In the category of you can't always believe what you read, a news report indicates that the former owner of Manteca Dodge owes $853K to the state of California for sales tax.
Here's a link to the news report - click here While I imagine it's possible, it doesn't seem likely to me that the dealership could have incurred that large of a receivable before the state would have forced them out of business. Even if you assume an average sales tax amount of $2,000/vehicle, that's over 400 transactions that were never remitted. As I recall, Manteca Dodge was only selling about 20 - 30 new cars per month. On a different note, I wonder if a dealer can discharge this obligation via bankruptcy? I remember reading that a person can NEVER discharge debt owed to the IRS that was collected for employee withholding. I wonder if debt owed to the state for unpaid sales tax can be discharged or whether it follows a person for life? |
12-01-2009, 12:41 PM | #2 |
Senior Member
Join Date: Oct 2008
Posts: 263
|
As to the ability to discharge sales tax in bk, that is a negative...stays til paid.
|
12-01-2009, 12:48 PM | #3 |
Senior Member
Join Date: Jan 2009
Posts: 1,122
|
How were they getting the lein slips for finance without paying the tax? Its a great plan!
|
12-01-2009, 01:47 PM | #4 | |
Administrator
Join Date: Nov 2007
Posts: 14,869
|
Quote:
The dealership has been closed for over a year but the Dealer Principal enjoyed a pretty high-profile lifestyle before the store went under. He created his own Internet-based TV show loosely based off of the King of Cars series. One episode showed him flying his own Cirrus airplane to evaluate some modified SRT vehicles he was going to sell. |
|
12-01-2009, 01:49 PM | #5 | |
Administrator
Join Date: Nov 2007
Posts: 14,869
|
Quote:
I know that his father-in-law also had a dealership fail - maybe the amount is the total for both stores? |
|
|
|
Similar Threads | ||||
Thread | Thread Starter | Forum | Replies | Last Post |
Great website with Sales Tax, Registration and Doc Fee Information | XDCX | Automotive Discussions | 0 | 09-28-2011 02:55 PM |
Car sales & excise tax deduction | kaks | Automotive Discussions | 1 | 02-15-2010 03:15 PM |
What's up with Manteca Dodge? | XDCX | Automotive Discussions | 3 | 01-16-2009 11:37 AM |
NBC News report | dduke | Automotive Discussions | 6 | 11-24-2008 05:54 PM |