Same in Michigan, I've been working in parts for 34 years and 31 in dealerships, it's been that that way since I've been doing it, we charge for the part and core, tax both, if you have the core we'll return the core value less the tax all on the same invoice, if you don't have the core and you return later it's the same result.
Sounds like a State backed scam to me. I might be inclined to send the information to my local TV news station's investigative reporter and let them run with the ball.
