Chrysler dislikes Connecticut’s Lemon Law, which requires carmakers to reimburse the consumer’s sales tax cost, without a refund right for the manufacturer. The carmaker has challenged the statute, suing the state Department of Revenue Services for nearly $1 million it paid to reimburse consumers for sales taxes paid on 626 “lemons.” Chrysler met with no success at the agency, in Superior Court and, most recently, at the state Supreme Court.
The court concluded that because the Chrysler corporation wasn’t the buyer or seller, it didn’t pay or receive the sales tax, and therefore wasn’t a “taxpayer” as defined in Connecticut’s tax refund statute.
