GNYADA November 2015 Newsletter

GNYADA Files Brief in GM Performance Standard Case

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Their determination will impact not just GM dealers but all dealers in the state of New York. To that end, GNYADA has filed an amicus brief, which the Association presented in court to support Beck Chevrolet’s position on these issues. GNYADA passed important amend- ments to the Dealer Franchise Bill in 2008, which have provided the framework for Beck's legal position in this case. The NYSCOA has not yet set the date on which it will hear oral argu- ments, but the Association will con- tinue keeping its members apprised of the status of this important matter.

dealer can prove that the full tank was clearly indicated in the sales price. Also, only dealers with a contractual obligation to fill these tanks are eligi- ble for a refund of sales tax paid on the gas. Contesting these rejections from the NYS Department of Taxation and Finance takes effort, but it is a winnable battle. For example, one GNYADAAllied Member — Ellen Kera of Kera & Company Certified Public Accountants — has been focusing on this issue for many local dealers. Often by citing the stamped bill of sale for each transaction, Kera has subsequently proved to the NYS- DTF that full gas tanks were indicat- ed in the vehicle price, and success- Those familiar with the issue will recall that a New York administrative law judge found that GM did not have good cause to terminate Beck Chevrolet’s franchise, principally because GM wrongly used a statewide average to gauge the sales performance of all dealers. Under appeal, the judge in Federal District Court ruled that GM’s formula, as applied to Beck, was not unfair or unreasonable and rejected Beck’s claim for damages. Beck is now appealing the Federal District Court’s decision to the Federal Second Circuit Court of Appeals. The New York State Court of Appeals (NYSCOA) has been asked by the federal appeals court to give their opinion on the soundness of GM's sales performance calculation under New York franchise laws.

Several years ago, General Motors began termination procedures against one of their New York franchises: Beck Chevrolet of Yonkers. GM claimed that Beck failed to meet the manufacturer’s sales performance requirement, and therefore should have their franchise closed. The owner of the dealership challenged this termination as a violation of New York’s Dealer Franchise Law.

Get Your Fuel Fill Credit

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The full tanks of gas that dealers often sell customers with a new vehi- cle is actually being “double taxed” — dealerships pay a tax on the fuel to have the tank filled for sale; then cus- tomers pay tax on the vehicle, which includes the cost of the full tank. In order to get that money back, dealers must file New York State’s FT-500 form, which is an application for the refund of sales tax overpaid on petro- leum products. Over the course of a full year, dealers could be leaving thousands of dollars on the table by not applying for this credit. However, the process of recov- ering the overtaxed amount is frus- trated by New York State's frequent rejection of FT-500 forms, unless the

fully gotten her clients’ claim denials removed.

If you would like help with filing these claims on behalf of your dealership, please contact Kera & Company at 914.332.8484.

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

The Newsletter • November 2015 9

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