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Originally Posted by Pharmacist
Yes, that's the thing. I was wondering if anyone here had experience with totaled cars and whether they were compensated for sales tax. I already faxed the bill of sale to the insurance company, and still waiting for them to respond.
Honestly, I think the greedy government is double dipping. They already taxed the cars once when they were new. They should not be taxing them again when sold used. really, if a car was sold 10 times, with each time the government getting a 13% tax revenue (assuming no depreciation), that means the government earned on that car 130% of the car's value as tax!!!!  |
They kind of are double dipping, kind of not double dipping depending on how you want to look at it. Sales taxes are typically calculated at the end of the process when it is sold to the end user regardless of the car being new or used. I think the mentality is that although the vehicle is used, it is "new" to that end-user. This makes it count as a new sale (despite being of a used product) and is therefor taxable.
Also, sales taxes are levied at the state level and will vary between states as to the form it takes, but I think all states apply the idea of new sale = taxable. Congress technically has the power to levy a nationiwide sales tax, but has so far not implemented one.