Dan Noble, Administrator with the Department of Revenue’s Excise Tax Division issued a statement outlining the Department’s position on the tax status of the federal government’s Car Allowance Rebate System.

The Deparment, “has determined that the discount will be treated as part of the trade-in price of the vehicle used to obtain the discount and as such will not be subject to Wyoming sales or use tax.”

The ruling has to do with the fact that the clunker has to be traded in as part of the purchase transaction and that the rebate is actually paid directly to the dealership after disposal of the vehicle.