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Vehicle Sales Tax Questions

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Comments

  • volvomaxvolvomax Posts: 5,274
    As an Oregon resident, you would not pay the 5.6% AZ state tax.
    What you would be liable for is any city and county tax.
    FAIK, there is no refund for this from Oregon.
  • revznetrevznet Posts: 3
    You know he said you have to pay the City or County tax which is about 7% of the car. You would always need to pay sales tax in the state you purchase when driving the car out of that state. if you are trucking the car out of the purchasing state, it would be tax exempt in the purchasing state. You would still be liable of the use tax in your home state.
  • volvomaxvolvomax Posts: 5,274
    Actually, in most places city and county is only 2% or so.
  • cccompsoncccompson Posts: 2,388
    Don't paint with such a broad brush. While it may make a difference in some states, whether a vehicle is driven or shipped has nothing to do with tax liability in many others.
  • dlynchdlynch Posts: 1
    Here is the situation:
    1 - I leased a 2008 Toyota from Toyota Financial Services
    2 - My son totaled the vehicle. Fortunately he is ok, unfortunately he was not covered under our insurance policy.
    3 - I had to buy the vehicle from TFS for $25,0000 to clear the lease.
    4 - I will sell the vehicle to the salvage yard for $1,000.
    5 - I live in PA and in order to transfer the vehicle to the salvage yard, I have to give them the title.
    6 - Does anyone know if I would have to pay PA sale tax on the $25k purchase price of the vehicle?

    Any thoughts are appreciated.
  • qbrozenqbrozen Posts: 16,886
    does this vary by state? I know here in NJ, my car is covered by my insurance no matter who is driving.
    I mean, otherwise, what would they do in the event of theft? "Hey, you were driving when the thief drove your car off the bridge. Too bad!"

    '13 Stang GT; '86 Benz 300E; '98 Volvo S70; '12 Leaf; '08 Town&Country

  • volvomaxvolvomax Posts: 5,274
    FAIK, you will have to pay the tax on the buyout.
  • ncosperncosper Posts: 1
    I am wondering what the tax rate would be on the registration of the vehicle in Arizona when purchased from a dealer out of state.
    More specifically do you pay or are you required to register the vehicle in the city or county you live in? Or do you automatically pay that tax rate. Meaning, say I live in Phoenix and my tax rate is approx 8%. This includes city, county and state sales tax. Can I register my vehicle in Tuba City that has the state sales tax and a small county sales tax with no city sales tax making it just over 6%, saving the difference? It seems to me that this is the case, but I can't seem to get an answer from anyone over the phone.
    Thanks
  • mio4321mio4321 Posts: 1
    I just recently moved to Boston, MA. Just before I moved here I purchased a car in NY, had it registered and insured in NY. Now I am converting all my stuff over from NY to MA and the RMV is telling me I have to pay MA sales tax on my car. I already paid the NY sales tax. But the RMV is telling me since I haven't owned the car for 6 months I have to pay sales tax again. Is there anything I can do to avoid this and can MA legally charge me sales tax again since the amount I paid in NY is greater than what I would be charged in MA?
  • volvomaxvolvomax Posts: 5,274
    Most states have a reciprical relationship w/ AZ for taxes.
    Meaning that if you pay tax in that state, that amount is credited towards your AZ tax.
    If you pay no tax out of state, you pay the full 8.1% tax in Phoenix(Actually, I think it just went up)
    If you have a residence in Tuba City, you MAY be able to register a car there.
    However, if you only have a residence in Phx, I don't believe you can.
  • I purchased a house recently and to try to clinch the deal the seller threw in two jet skies. When my son went to transfer the titles the tax women asked him what he thought the vehicles were worth. He answered about $5000.00 each whereby she said he would need to pay full tax on $10000.00, He had to leave as he did not have enough money.
    Why do I have to pay tax on a vehicle I did not pay anything for?
  • tidestertidester Posts: 10,110
    Why do I have to pay tax on a vehicle I did not pay anything for?

    Probably for the same reason some states require you to pay sales tax on the full retail price of an item that you buy at a half off sale. :mad:

    tidester, host
    SUVs and Smart Shopper
  • I should pose my tax question in the tax forum. Bottom line is if you are currently in a lease, and trading the leased vehicle in early at another car company, do you receive tax "credit" towards the purchase or leasing of another vehicle? Example:

    20K Trade in Allowance on 20K Payoff of Existing Lease
    15K Purchase Price of new car

    Does this transaction net to zero tax, or X% of the 15K purchase price?

    Thanks for any insight. :confuse:
  • volvomaxvolvomax Posts: 5,274
    You only recieve a tax credit IF you paid the full tax when you bought the car.
    Most states have you pay tax as you go on the payment, so there is no tax credit to issue.
  • In Illinois we pay full tax when we LEASE the car. Same goes for Texas. So, in your opinion, there is no tax on my example above?
  • I'm still pretty unclear on this whole thing and I should clarify a few things.

    1. I am currently in a LEASE in Illinois. (We pay full sales tax at lease inception)
    2. Trade in would be going to a different manufacturer/dealer. ex. Trade in Toyota to Honda.
    3. Trade-in "allowance" is greater than purchase price of new vehicle.

    This appears to be pretty "black and white" but I can't seem to get an answer. I've also looked at IL ST 556 (page 40) and IL Title 86 Part 130.425/455, but am having a difficult time interpreting.

    http://www.revenue.state.il.us/Publications/Sales/STS76.PDF
    http://www.revenue.state.il.us/LegalInformation/regs/part130/130-425.pdf
    http://www.revenue.state.il.us/LegalInformation/regs/part130/130-455.pdf

    :confuse:
  • I'm not an expert on Illinois lease taxes... but..

    A lot of companies set-up balloon payment programs, specifically for Illinois, so that the vehicle is in the purchaser's name, and so they get a tax credit on trade, or can avoid additional sales tax if they exercise the purchase option at the end of the balloon period.

    If you've been leasing, and are going to another lease, then you probably aren't going to get any credit at all.

    People say leasing sucks in Illinois, and this is why.

    regards,
    kyfdx
    visiting host

    Moderator - Prices Paid, Lease Questions, SUVs

  • Thanks for the reply. Leasing sucks in IL...ha. you can say that again.

    What I take away from your answer, is, if I go from LEASE to PURCHASE, I will get the tax credit?

    Makes a big difference in overall price.

    Thanks for all your help.
  • I don't know for sure.. But, if your current lease is titled in the bank's name (and, that is usually how it works), I don't think you'll get a trade-in credit, at all..

    All you can do is worry about the next time..

    Moderator - Prices Paid, Lease Questions, SUVs

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