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What you would be liable for is any city and county tax.
FAIK, there is no refund for this from Oregon.
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.
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!"
'11 GMC Sierra 1500; '08 Charger R/T Daytona; '67 Coronet R/T; '13 Fiat 500c; '20 S90 T6; '22 MB Sprinter 2500 4x4 diesel; '97 Suzuki R Wagon; '96 Opel Astra; '08 Maser QP; '11 Mini Cooper S
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
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.
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
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:
Most states have you pay tax as you go on the payment, so there is no tax credit to issue.
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:
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
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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.
All you can do is worry about the next time..
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Unless IL simply doesn't issue any credits.
I guess it's not so simple anymore.
Just don't understand the logic of charging more depending on the value of the vehicle.
South Carolina is capped at $300..
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How is this unfair?
It's a flat tax.
The income tax that is graded based on how much you earn is WAYYYY more unfair than a sales tax.
Perhaps, but one could argue that "those of higher incomes" get a break on things like profits on stocks and bonds where their profits are taxed at rates lower than income taxes and there is no tax on sales.
tidester, host
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Capital Gains! Now THERE is an unfair tax. First, you are taxed on the income you used to buy the stock THEN you get taxed again when you have the temerity to make a PROFIT!
tidester, host
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There should be one tax amount for each taxpayer, but if the present system continues.......
For every $1,000 paid for Income Tax the payer gets one vote.
When the taxpayer is productive and owns real estate, he votes entire ballot.
If he doesn't own real estate, he can't vote on real estate taxes.
If he is NOT productive, lives on the dole & collects permanent welfare, he doesn't vote.
What, like the banks and the defense industry?
Putting more power in the hands of those who already have the money.... That'll fix things! :surprise:
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Run the country like a corporation.
Why should non productive,non tax payer folk have the position to vote tax burdens on others who do work & pay the taxes? :confuse:
I think removing their voice from government would be a mistake... not to mention a violation of the constitution (as long as we are bringing up our form of government).
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Those in this country who have a pot and window know what they have done to achieve that level of economic stability while those who don't, know what they haven't done.
The term "less fortunate" implies helplessness, but not everybody is crippled or retarded. Too many, with ability, have chosen to let the govmint take care of them with our (my) taxes.
I understand they have that entitlement (right) to vote, but it isn't earned.
All citizens (adults) are subject to laws and regulations. All citizens who are subject to those laws and regulations should have a say in who gets to make the rules. Anything short of that resembles tyranny. Suggesting that one should "earn" the right to vote is a nonstarter.
In any case, we should make an effort to get back on topic.
tidester, host
SUVs and Smart Shopper
Apparently the state got tired of people declaring that that famous $1.00 sales price for a used car, and started collecting sales tax on the standard presumtive value of the vehicle, based on (Kelly, Edmunds TMV, Smoke Signals?) but still a good place to get a snapshot of what your car is really worth.
The site allows you to enter a VIN and the odometer reading on a car and get the "Standard Presumtive Value" of the vehicle.
Interesting reading, but - caution! - it can be depressing.
Oh Dear!
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How does it work out the Lessee has to pay 10% after 1 April?
tidester, host
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The tax is collected monthly on the rental of the car. When the tax rate goes up, the lease payment will reflect that.
Of course, other states that do collect the tax upfront will have different rules.
regards,
kyfdx
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I'm in California - Wells Fargo lease is sticking me with a disposition (turn in) fee and I have some mileage overage. They are also claiming that they are required to add sales tax on both the disposition fee and the mileage fee. Anyone know if that is correct?
Thanks.
This includes money paid upfront, and on the back end...
regards,
kyfdx
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