Wednesday, September 3, 2008

Consumers file suit against carmakers for air conditioner tax

Consumers have launched a class-action lawsuit against the Canadian subsidiaries of Ford, Chrysler, Honda, Toyota and Nissan, alleging the automakers and their dealers have unfairly collected a $100 excise tax on air conditioners.

The lawsuit says manufacturers and dealers when selling or leasing a car, collect a $100 excise tax for vehicles equipped with air conditioners.

Lawyers representing the consumers said Wednesday manufacturers must pay a $100 excise tax when they make or import a car with air conditioning. But they say the tax should not be paid out by the consumers.

"The lawsuit alleges that the $100 charge collected from consumers is really just part of the sale price and is not actually an obligatory tax payment," lawyers Brian Osler, Glyn Hotz and Darrel Hotz said in a release.

"The lawsuit claims manufacturers and dealers have misrepresented these charges and deceived vehicle buyers into believing that this is actually a tax that they are obliged to pay on their purchase."

The claims have not been tested in court.



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