The law provides that a seller may advertise prices as "including sales tax" or "seller to pay tax" when the following conditions are met:
- In print, the words "tax included" or "seller to pay tax" must be at least half the size of the advertisement print.
- If oral, the words "tax included" or "seller to pay tax" must be stated in the same volume and inflection as the selling price.
- When advertised prices are listed in a series, the words "tax included" or "seller to pay tax" must be conspicuously located at the head of the list in the same print size.
The law states that regardless of how the purchase price is advertised, retail sales tax must be clearly and separately stated on any purchase order, invoice, receipt or billing document, so the customer can tell the exact amount of retail sales tax on the sale.
Purchaser's right to know
The purchaser has the right to know the exact amount of retail sales tax being paid on its behalf and the actual selling price of the vehicle. The retail sales tax cannot be used to gain a competitive advantage.
When the selling price and retail sales tax are not clearly separated, the retail sales tax must be charged on the stated price on the invoice, sales documents or billing invoices. The retail sales tax must be itemized on the buyer's invoice or receipt.