I am purchasing a car today and using a bill of sale from a friend. I do NOT want to pay sales tax any more than I have to. She/he is willing to sell the car at a reduced price provided that we find out what this minimum/maximum is. Can anyone tell me?
2007-03-22 09:13:43 · 5 answers · asked by boogie2988 2 in Business & Finance ➔ Taxes ➔ United States
This is covered by state law.
Generally, no sales tax would exchange between yourself and the seller but the DMV would ask you how much you paid for it when you title the car.
If the amount is "reasonable", they will take your word for it and charge you tax based on the local rate.
2007-03-22 09:50:35 · answer #1 · answered by Wayne Z 7 · 2⤊ 0⤋
Even if you get a friend to write a phony bill of sale for $100, the DMV will still charge you sales tax on the Blue Book value of the car..
2007-03-22 09:24:20 · answer #2 · answered by smartypants909 7 · 0⤊ 0⤋
i'm assuming you're asking the way you come across the pre-tax cost while given the fee alongside with tax. I won't inform you rapidly, yet i think of you could artwork it out from right here. If an merchandise expenses $9.ninety 9 and you could discover the full fee alongside with 7.25% revenues tax, you will multiply the fee by using a million.0725 and around to the closest cent. while you're given the after tax cost, you purely do the inverse. in case you purely prefer the quantity of tax, you multiply the article cost by using the decimal equivalent of the revenues tax proportion (% / one hundred). in the above occasion it could be 9.ninety 9 * .0725. EDIT pollopicante19's answer is faulty - a minimum of partly. Multiplying 9.ninety 9 by using .ninety 4 can provide ninety 4% of 9.ninety 9, even with the undeniable fact that it would not supply you the splendid revenues tax quantity in case you do away with the 6%. 9.ninety 9 * .ninety 4 = 9.39. in case you upload the 6% tax to this manner 9.ninety 9*a million.06 you get 9.ninety 5. even with the undeniable fact that, in case you divide 9.ninety 9 by using a million.06 you get 9.40 two. Then in case you at 6% tax to 9.40 two it is going bact to 9.ninety 9. attempt it your self in case you do no longer believe me.
2016-12-15 06:32:14 · answer #3 · answered by sickels 4 · 0⤊ 0⤋
You have to pay sales tax - no matter what the amount is when you register the car.
2007-03-22 09:18:10 · answer #4 · answered by T F 4 · 1⤊ 0⤋
Contact the Revenue Office for your State. In my State anything $2,500 > is Taxable. Anything below $2,500 is not taxable. But, if the car bought out of State I not sure how they tax that, I know they do when you Transfer the Title from one State to mine.
2007-03-22 09:24:23 · answer #5 · answered by Snaglefritz 7 · 0⤊ 1⤋