One of the loftiest prizes available to game show contestants is a brand new car—usually given to the show as a form of advertisement by the manufacturer. Unfortunately, winning a “free” car can be both a blessing and a curse, since the winner is still required to pay sales tax. In the United States, this rate varies from state to state, but can get very expensive. This issue was brought to the forefront by a memorable 2004 episode of The Oprah Winfrey Show, when the entire audience, 276 people, received a Pontiac G-6 worth $28,500. A little math reveals the final price tag for the giveaway as at least $7.9 million. Of course, the billionaire Oprah could easily have afforded such a generous gift, but it was actually funded from Pontiac’s marketing budget. Each prizewinner was left with a tax bill of approximately $6,000. Should you luck into winning a thirsty, high-horsepower sports car that devours gas at a higher rate than normal, you’ll also get slammed with a “gas guzzler” tax. The less fuel efficient the vehicle is, the higher the tax will be.
Posted on: Mon, 03 Mar 2014 13:48:08 +0000