New York Plans to set 5% Luxury Tax on Cars

David Paterson the Governor of New York is trying to close a $15.4 billion dollar budget gap. So, what does he do? Well, the only reasonable thing you can ever do while being Governor is coming up with ingenious ideas of inventing new taxes.

Patterson called 88 new fees and whole bunch of other taxes including a... wait for it, iPod tax, which is made to tax the sale of downloaded music and other digitally entertainment services delivered.

"We're going to have to take some extreme measures," nydailynews.com quoted Patterson as sayingafter unveiling the slash-and-burn project.

But what concerns us is the 5 percent luxury tax that the New York Governor considers implementing in the system. This would mean that you will buy your Lamborghini today and come back for the wheels on the next paycheck.

The tax will be for all cars that exceed the tag price of $60,000, so you should probably go for a yacht because you won't have to pay any tax if the price doesn't exceed $200,000 or better a plane if it's below $500,000.

So if you really desire to buy yourself a luxury vehicle watch out for the price tag or better yet, be careful with the option pack. The $60,000 marker can be easily be crossed if you have a taste for exquisite leather interiors, Bi-Xenon lighting systems or fully functional electric interiors.