GNYADA March 2018 Newsletter Including Special Auto Show Edition

NADA Director’s Column ADA Membership Strengthens the Dealer’s Voice in D.C. Attend the NADA Show 2018 by Bob Vail, Vail Buick GMC, NADA Director Metro New York

NADA’s impact on our government in Washington is precisely as strong as the volume of dealers we represent. I urge all NADA members to keep their membership current so we can maintain this crucial strength in numbers. If your dealership isn’t part of NADA, you can give our lobbying efforts a big boost by joining today. NADA Works for Dealers NADA’s Political Action Committee forges relationships with federal representatives and candidates who are receptive to our issues. This Committee enables dealers coast-to- coast to speak in one clear, unified voice, and ensures politicians are

aware of the vital economic role that dealers play in this country. Tax Reform In 2017, NADA was instrumental in amending the tax reform bill to preserve 100% deductibility of interest on floor plan loans. We also guarded against federal actions that could weaken the dealer franchise model and contested regulations that would impede dealership business.

livestock) can be eligible for the trade-in credit as long as the dealer accepts the property for the purpose of resale and applies the credit to the purchase of the new or used vehicle the dealer is selling or leasing to the buyer. GNYADA publications, A Guide to Sales Tax for Automobile Dealers (Pub. 838) and A Dealer's Guide to Sales and Use Taxes on Long-Term Motor Vehicle Leases in New York State (Pub. 839), are a great resource for dealerships. Contact GNYADA today if you need a copy! NADA Convention I hope to see you at the 2018 NADA Show, taking place in Las Vegas from March 22 to 25. This event is an invaluable opportunity for dealers to network with exhibitors, OEMs, and other industry minds. NADA is planning events and seminars that will dig into the latest automotive trends, as well as some very informative workshop sessions and exciting guest speakers. Go to show.nada.org to register.

Sales Tax Deduction on Trade-Ins 6 Calculating the correct sales tax on a deal involving a trade-in is important because this is often an area subject to audit. Calculating a sales tax Lease Transaction Regardless of the value of the trade- in, the sales tax credit will be based on the amount of the equity the customer has in the trade-in vehicle.

“credit” can be confusing. Below is a summary of the difference between a retail purchase and lease transaction with a trade-in. Retail Purchase The fair market value of the trade-in is the amount applied to reduce the selling price, which reduces the amount used to calculate sales tax due.

Ownership Remember, the buyer or the lessee of the vehicle does not have to own the vehicle or other property being traded-in in order to receive the sales tax credit. Eligible Property In addition, any property, not just a vehicle, being traded in (a boat, motorcycle, diamond ring, painting,

Greater New York Automobile Dealers Association • www.gnyada.com

The Newsletter • March 2018 5