Are dealer add-ons or optional equipment included in the taxable sale price?

The taxable sale price for a vehicle includes the full amount charged to the buyer, which encompasses not only the base price of the vehicle but also any dealer add-ons or optional equipment. This is because the sales tax is calculated on the total transaction amount. When a dealership includes items like extended warranties, paint protection, or any other enhancements that increase the vehicle's value, these are considered part of the overall price that the buyer is paying. Hence, sales tax must be applied to the entire sale, ensuring that it reflects the full worth of the transaction.

This treatment underlines the principle that all components of the sale influence the tax calculation, making it essential for buyers to be aware that any optional features or add-ons they choose to purchase will affect the total price they pay, including the sales tax applied. The other options suggest exemptions or conditions that would not typically apply in a standard sales transaction involving dealer add-ons.