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As a motor vehicle dealer or wholesaler, you must obtain a seller’s permit, and report and pay tax on your vehicle sales. Some sales, however, are exempt from tax under the Sales and Use Tax Law. This section provides information on the taxability of vehicle sales and of charges associated with those sales, such as license fees and dealer-installed extras. Information is also provided on the tax impact of trade-ins, discounts, rebates, and factory-dealer incentives.