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Chrysler seeks refund on sales tax for Lemon Law repurchase and replacement settlements

Under most state lemon laws (including Texas Lemon Law), when a consumer gets a new repurchase or replacement settlement from the car manufacturer, they are also entitled to a reimbursement for sales tax, title, license (TTL), and other relevant fees. Thereafter, car manufacturers such as Mazda and General Motors (GM) will in turn apply to the state to get those TTL fees refunded back to it. However, such is not the case in the state of Connecticut.

Chrysler (LLC), once known as DaimlerChrysler Corporation, is appealing its case to the Connecticut Supreme Court on the issue presented above. Previously, the Connecticut tax department, along with the state’s Superior Court both ruled against the private car manufacturer.

Although TTL fees may seem like small amounts to be fighting over — especially to the state Supreme Court; when you consider the aggregate costs of all TTL fees involved in lemon law buybacks to all fifty states, then the amount may significantly reach the potential million of dollars.

For more information about Chrysler’s fight, click here. For more details about TTL refunds for Texas lemon law buyback, click here.

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