$1K rebates and Processing fees State of MD. taxable?

[Ritter 197]

A local Toyoto dealer says he must include "processing fees" and the
official Toyota $1000 rebate on 2008's Hybrids on the taxes for MD. which
are 6%.

I doubt that services (processing fees) and reductions in Price (rebates)
are taxable.

I cannot find anything when I try to "google" this question.

Any comments???

[john...@hotmail.com]

You can always call MD Tax Board to ask. Usually the discount is taken
off before anything else is applied, otherwise if you negotiate a
lower price from sticker is the difference taxable too? So I think
your dealer is full of it.

2008 is forecast to be a slow year for auto sales. Tell your dealer to
lower the price some more.

[ACAR]

AFAIK, processing fees are not required by MD law. If they don't
appear on the sales contract, no tax.

AFAIK, a rebate is applied AFTER the final sales price is calculated.
Hence, you pay taxes on full sales amount prior to rebate. A rebate
returns part of your payment; it is done after a sale. A discount is
different, as that is done prior to the sale and decreases the sales
price and taxes.