Originally Posted by FlashSilver
This is from a collection agency. I would ignore it for as long as possible.
The OP posted it came from the dealer, not a collection agency. Ignoring letters about any kind of bill only makes it worse. They don't go away and if it's a valid tax discrepancy, penalties, interest and fines may happen.
If a retailer makes a mistake in a tax collection, that doesn't make the tax disappear. There no contract between a retailer and a purchaser to avoid taxes—such a "contract" would be illegal and could have civil or criminal consequences.
It seems like a lot of people want to assume the worst and complain about taxes when a phone call to the dealer and the appropriate taxing authority would most likely answer the questions as Terry has suggested.