they didnt have to pay taxes on the car when they acquired it! so why should i have to pay taxes on it?
2006-08-17 19:52:10 · 6 answers · asked by joserv80 1 in Cars & Transportation ➔ Buying & Selling
Car Dealers, like any other retail establishment, buy things at wholesale to sell, at retail. They don't pay sales tax, until it is sold. Then they collect the sales tax (from the buyer) & send it to the city, county, state,etc. on the buyers behalf.
Same thing when you buy ANYTHING from ANY retail store.
If you trade in a car, your sales tax on the new vehicle is reduced by the amount of the trade in. For example:
You buy a $20,000 vehicle, & do not trade any thing in: your sales tax is calculated on the full $20,000.(Lets use 7% tax rate as an example) You pay $1400 in tax ,to the dealer, the dealer fowards the tax for you & you get a tax form or receipt showing that YOU paid tax
But , if in the same purchase, you trade in a car that is worth $5000, you would only pay tax on the DIFFERENCE between the new vehicle & the trade in vehicle. In this instance, your tax is calculated on $15,000. Useing the same 7%, your sales tax would only be $1150, instead of $1400.
If somebody else purchases the vehicle that you traded in, then they will pay sales tax on their purchase price.
2006-08-18 06:20:31 · answer #1 · answered by Vicky 7 · 2⤊ 0⤋
The way the laws are written in most states, you will have to pay sales taxes on the purchase of a used vehicle. Depending on the state, you may also have to pay personal property taxes when you license the car.
2006-08-18 00:34:44 · answer #2 · answered by JetDoc 7 · 0⤊ 0⤋
Depends on what state you are in and if you can get a tax break.
Active duty military in most states get a tax break and pay no taxes or reduced taxes.
But most people will pay taxes on a vehicle and costs for tags,title and registration.
2006-08-17 19:59:02 · answer #3 · answered by mrlong78 2 · 1⤊ 0⤋
No, you pay ownership tax when you register the vehicle. (in the United States)
2006-08-17 19:58:34 · answer #4 · answered by BroncosFan537 2 · 0⤊ 0⤋
You don't want to pay the tax. Simple. DON'T BUY THE CAR!
2006-08-17 19:59:23 · answer #5 · answered by Ironball 7 · 0⤊ 2⤋
first of all, they did pay taxes to the goverment on the sale unless they bought it on the black market...so it is obvious that you have to pay too.
2006-08-17 19:58:54 · answer #6 · answered by Roxy 5 · 0⤊ 0⤋