State Sales Tax Question..
03-04-2012, 10:39 PM
#14
We let screwed in Arkansas darn Democrats. Buy a Msrp at 43k but only finance let's say 33k after mark Downs and rebates. But you still pay %6.25 sales tax on 43k. Then you register for $22.50 then the next year depending on value personal property tax like for me this year on a 38k truck 433 bucks plus the register fee again of 22.50 I hate taxes.
03-04-2012, 10:39 PM
#15
The reason why is the person who buys your trade-in will be paying the other half of the sales tax. Actually more than half because that dealer will be selling your trade for more than they gave you.
I've always thought the sales tax on vehicles is the biggest ripp-off. For the life of that vehicle if it is sold over and over again, the government will continue to collect tax each and every time it is sold. And that's not counting the property tax they want each year when you keep it. :-)
I've always thought the sales tax on vehicles is the biggest ripp-off. For the life of that vehicle if it is sold over and over again, the government will continue to collect tax each and every time it is sold. And that's not counting the property tax they want each year when you keep it. :-)
I agree with you on the vehicle sales tax rip-off. If a vehicle is sold often enough, the state could collect north of 100% tax on it. Yes, that's a rip-off. :-(
03-04-2012, 10:57 PM
#17
Originally Posted by flixden
I don't know about that reasoning. The buyer will pay the same sales tax even if you sell it to him privately, and then you pay the full sales tax if you buy another truck. The real reason seems to be more likely lobbying of the dealerships - they are getting an advantage here.
I agree with you on the vehicle sales tax rip-off. If a vehicle is sold often enough, the state could collect north of 100% tax on it. Yes, that's a rip-off. :-(
I always have to trade it in though because my trucks are a business write off. If I sell a truck privately then it is considered a capital gain (since I wrote the truck off my taxes) and I would have to claim the truck sale as income and then pay income tax on the sale of the truck. But if I trade it in then I can start deducting the difference off my business again. That is lobbying for the dealer since you never get what its worth on a trade and they know it and so does the politicians who lobbied it to be that way. It should be if I want to sell it privately and get an extra $3k to go towards another business vehicle that I should without being penalized.
03-04-2012, 11:13 PM
#19
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My response was one of gratification that we have no sales tax. I can buy a vehicle out of state and have no sales tax levied. In fact, I recently did.
Last edited by mtlariat; 03-04-2012 at 11:18 PM.
03-05-2012, 08:22 AM
#20
FX4 SCrew TT'd V6
Not sure in your state but in Missouri if I sell my vehicle within 6 months on buying a new truck, i can take that amount and apply it to the sales tax I paid and get a refund check. If I sell my vehicle privately before the 30 days to get it registered and pay taxes, they deduct that from the selling price so you only pay sales tax on the difference just as if you traded it in.
I always have to trade it in though because my trucks are a business write off. If I sell a truck privately then it is considered a capital gain (since I wrote the truck off my taxes) and I would have to claim the truck sale as income and then pay income tax on the sale of the truck. But if I trade it in then I can start deducting the difference off my business again. That is lobbying for the dealer since you never get what its worth on a trade and they know it and so does the politicians who lobbied it to be that way. It should be if I want to sell it privately and get an extra $3k to go towards another business vehicle that I should without being penalized.
I always have to trade it in though because my trucks are a business write off. If I sell a truck privately then it is considered a capital gain (since I wrote the truck off my taxes) and I would have to claim the truck sale as income and then pay income tax on the sale of the truck. But if I trade it in then I can start deducting the difference off my business again. That is lobbying for the dealer since you never get what its worth on a trade and they know it and so does the politicians who lobbied it to be that way. It should be if I want to sell it privately and get an extra $3k to go towards another business vehicle that I should without being penalized.