State Sales Tax Question..
03-05-2012, 08:32 AM
#21
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. :-)
There was an attempt in Georgia about 10 years ago to do away with the county's portion of the sales tax on vehicles because they always ended up making more money on yearly ad valorem taxes anyway. It got a little bit of traction at first, but of course the "poor" counties in South Georgia complained about how much money they'd lose doing that and got it killed.
03-05-2012, 12:28 PM
#22
Senior Member
We get screwed in Michigan.
You buy a $50,000 vehicle and trade in a $49,000 vehicle, you pay 6% on $50K.
Why is that, you ask? Take a look at which political party has been in control of this state for the vast majority of its existence ... ;/
You buy a $50,000 vehicle and trade in a $49,000 vehicle, you pay 6% on $50K.
Why is that, you ask? Take a look at which political party has been in control of this state for the vast majority of its existence ... ;/
03-05-2012, 07:11 PM
#23
Senior Member
That's one reason North Carolina years ago got rid of the "sales tax". Now you pay a "road use tax" when you register the car, 3% of the value after trade in. And if you sell the car in a private sale the next year, when the new owner goes to register it, he gets hit with another 3% road use tax, based on the DMV calcuated value of the vehicle.
The dealer collects the 3% when you buy the car, becasue the dealer process your title/registration forms, so people still call it, or think it is, a sales tax.
03-06-2012, 07:40 PM
#25
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05-20-2021, 08:51 AM
#26
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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 personal tax advisor near me. 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. :-(
05-20-2021, 01:18 PM
#27
Senior Member
Taax ...
.