Do you have to pay sales tax @ the DMV when you purchase a vehicle from a private seller?

Answer 1

In our state - they get tax on anything that moves - YUP

Answer 2

This is determined state by state. In WA the answer is yes but they call it use tax when the purchase is between private parties.

"If sales tax was not paid at the time of purchase, use tax applies at the time the vehicle is registered with the Department of Licensing. This would occur if a vehicle was purchased from a private party or if it was purchased outside of Washington."

Answer 3

Cash or private sales, as long as both parties agree, can put down a lower amount. However, Some insurance co are now looking to DMV for the amount paid when paying out for theft or right off. I am aware off one person who bought a car for $8000, paid tax for $5000, some months later the car was stolen and his insurance offered him $3300 payout. He contested this and was shown a copy of his reg showing the $5000 purchase price, which they set their valuation on. If he still contests it he will face prosecution for making a false declaration.

Answer 4

You didn't say which state you are from, but in most states you are required to pay your states percentage in sales tax on a vehicle. Some states also charge use tax, county tax or city tax. Contact your local DMV and ask.

Answer 5

In Michigan you do. I paid sales tax on a car i bought from a friend and got a great deal. The state came back at me 6 months later and said that I have to pay more tax because the car was undervalued. I had to prove to them that I only paid what i did.

Answer 6

In California you do, unless you do a simple transfer of title instead of bill of sale. Read up on it at the DMV website for your state. (Yahoo for whatever state DMV).

Answer 7

In Oklahoma, you have to pay sales tax at the time you change the title to your name.....unless it is from a family member, then the sales tax is waived.

Answer 8

yes and it's usually about 10% of the purchase price.

Answer 9

It depends upon the state you reside in. Here in Oregon the answer is no.

Answer 10

In MOST states, YES.