The J-Man
Well-Known Member
There were three line items ending in "use tax vendor fee" totaling about $110.How much was the "Vendor Fee" that they charged you? For future reference, to what source does one refer to prove this fee does not apply in CO?
Thanks for reporting back on your experience. You've done a great service to us Colorado purchasers.
When a retailer (Rivian) collects sales tax from a customer (you), the retailer (Rivian) is entitled to a "vendor fee." The state essentially allows the vendor (Rivian) to keep a portion of the sales tax charged to you to offset their costs in collecting and remitting it. The fact that this was showing up as a charge on customer purchase summaries means one of two things:
1.) Rivian's tax department has a fundamental misunderstanding of how sales tax works.
2.) Something has gone extremely haywire in Rivian's accounting systems.
3.) Combination of the above.
In Colorado, the taxes should be your total purchase price multiplied by the tax rate at your primary address.
The total purchase price includes the $1075 destination fee and $225 documentation fee. For example:
Base Price: $70,000
Options: $5,000
Accessories: $1,000
Destination: $1,075
Documentation Fee: $225
Total purchase price subject to tax: $77,300
Tax Rate at your address: 8.50%
Total sales taxes: $6,570.50
You can prove your total tax rate by inputting your address at the following link. This is a State of Colorado certified database.
Here is the link.
https://colorado.ttr.services/
If the math doesn't work out, or if there are any other charges on your purchase summary, be skeptical.
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