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Please Explain Used Car Sales Tax
Wasn't sure the appropriate forum to post this in so ended up going with the General Discussion area (please move if needed).
I've been trying to rationalize this for the last few days and its not making any sense whatsoever. Here is the scenario:
Assuming I have everything correct in that scenario why in the world does Person B have to pay practically the same amount of sales tax as Person A? If Person A instead traded in the car on a new one they would deduct the trade in value from the overall price before applying sales tax so it seems to me that Person B shouldn't have to pay any sales tax at all. I'm not trying to :stirthepot: here - I'm just trying to understand exactly how private party used car sales work since my research on the internet isn't returning me many hard facts in this specific area. Thanks! |
This is a simple answer and you will not like it:
~It is because the "government" can do it and no one argues against it. Is it right? No, it is double dipping for taxation, but the law is written and no chance anytime soon they will change it. |
Trying to rationalize governmental taxes is like trying to figure out women. Good luck.
But for the record, used car sales tax depends on the state as well. |
i don't know bout you fellas, but here in the big MO we have to pay personal property tax on what we own too, wtf is up with that!!!!!!!!!!!!!!!!
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i pay usually around $500.00 per year due dec.31st. what a rip off. and if you don't pay they send you these threatning letters how they are going to come and take the plates off of your car:bowrofl:
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In my case, I live in Florida. I know how it works if I transact with a local dealer for a new or used car. However, what happens if I go through a dealer in a different state (like one of the fine sponsors we have on this site) or a private seller for a used vehicle. I can't believe that I give the sales tax to the private seller and they then give it to the local authorities. Is it as simple as me taking the Bill of Sale to the local DMV or Tax Collector to register the car and having to pay them the amount deemed appropriate? That sort of worries me too on a used car - how do they set the amount of tax owed on a used car (sale price, book value, original MSRP :eek:)? Any Florida members around with personal experience that can help me sort this out? Thanks! |
you would still pay the sales tax(whatever the rate is)back in your state. you don't give the seller the tax money, that only comes into play when you go get the plates
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You can check out the DMV sites in other states for taxes and registration fees! http://www.the370z.com/brakes-suspen...tml#post111649 |
you will pay the tax to your home state when you try and register the car.
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If you are buying from a private party, you pay taxes when registering at the DMV. So the trick is when negotiating a price with the private party, negotiate 2 prices; the actual selling price, and the DMV reported selling price.
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All my used vehicles purchases have been with family, so the DMV repoted price has always been $100. Haha. |
Yea you pay the sales tax when u get the plates. but like others said...try to get a second lower price to tell the dmv when you get ur plates. should lower the amount you owe for taxes
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