IRS adds new car break to Montana, other states with no sales tax

To help boost car sales, the Obama administration is expanding a tax break on new car sales to Montana and five other states that don’t have sales taxes.

The economic stimulus package enacted in February makes state and local sales and excise taxes, on new cars purchased this year, tax deductible. The Obama administration has interpreted the new law to include certain fees charged to new car buyers in six states without sales taxes.

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