When you go to pay taxes on a vehicle you just purchased from a private party, do you pay based on the price you bought it for or based on the year of the vehicle?
2007-09-21 03:01:44 · 5 answers · asked by ♥ purrlvr ♥ 6 in Cars & Transportation ➔ Buying & Selling
ok lets say for example i paid $200 for a car, what would i have to pay in taxes?
2007-09-21 03:15:50 · update #1
Depends on the state. Most times it is the price you paid, but a lot of states now make you pay based on book value.
They do this to eliminate tax fraud by people paying alot more then they are saying in order to avoid taxes.
2007-09-21 03:12:25 · answer #1 · answered by Anonymous · 1⤊ 0⤋
It depends on the tax laws in the state where you are going to register the car.
Since the tendency was for people to low-ball the reported sales price when reporting the sale to the state, most states now use suggested retail value of the car, based on their own computer network sources, like Kelley Blue Book or NADA suggested prices.
2007-09-21 10:26:57 · answer #2 · answered by JetDoc 7 · 1⤊ 0⤋
In most states, you do not pay sales tax on a used car when purchased from a private party, unless they are a car dealer.
Check with the DMV in your state.
2007-09-21 10:16:29 · answer #3 · answered by ed 7 · 0⤊ 1⤋
The selling price of the car, but, bring a bill or sale signed by the previous owner. Some states require an "affidavid of sale" form be filled out by you and the previous owner. Good Luck.
2007-09-21 10:09:56 · answer #4 · answered by FILE 4 · 1⤊ 0⤋
how much is the tax rate in you state....
2007-09-22 23:41:48 · answer #5 · answered by Anonymous · 0⤊ 0⤋