Is price protection taxable?

Mach-Lee

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Wondering if anyone knows the answer to this. Should price protection be:
  1. Entered as a reduced MSRP (which should match the original MSRP)
  2. Entered as a discount (non-taxable)
  3. Entered as an incentive (taxable)
The way it's done will affect the sales tax and residual amounts on the purchase contract. In my state you pay tax before incentives come out. Residual is based off MSRP only. Personally I think it should be #1 but I can't find any guidance.
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RickMachE

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Not entered. Doesn't appear on paperwork at all. Payment is to dealer. Therefore 1.
 

Dancefreak

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Just drove the car home from the dealership today. The sales price of the car was adjusted to the X-Plan October price so tax was paid on that, not the full current MSRP.

That said have heard all sorts of nonsense from some people’s experience, but that’s how it is supposed to be done.
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