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Sales tax question

grappler54grappler54 Posts: 1
edited March 2016 in General
I recently traded in a Pathfinder and got $16,500 for it and in return got an F-150 for $11,300 so since I traded down the dealer gave me the difference which I took to my bank to put towards the $14,000 I owed on Pathfinder and they just switched the loan to the F-150. My question is when I go to register the new truck will I have to pay sales tax since I didn't really buy the car but traded down? I live in Indiana. Please help

Comments

  • steverstever Posts: 52,462
    edited March 2016
    This state of Indiana link indicates that the value of your new car is reduced by the trade-in value for purposes of figuring out the tax you owe. (pdf file) Best check with the Indiana Department of Revenue to see if that 2012 link is still valid, but it sounds to me like you'd not owe anything.
  • I just bought a high country Silverado in Indiana and they charged me Maryland( my state of residence and where vehicle will be licensed) sales tax. When I went to get my tags I was told they did not forward the tax to Maryland! I had to pay another $2577 to get my tags. I was told Indiana and Maryland do not have a reciprocal agreement and I am not entitled to get a refund of these taxes! Anyone know if this is legal?
  • kyfdxkyfdx Posts: 128,281

    I just bought a high country Silverado in Indiana and they charged me Maryland( my state of residence and where vehicle will be licensed) sales tax. When I went to get my tags I was told they did not forward the tax to Maryland! I had to pay another $2577 to get my tags. I was told Indiana and Maryland do not have a reciprocal agreement and I am not entitled to get a refund of these taxes! Anyone know if this is legal?

    The dealer may have collected Maryland sales tax, but they didn't send it to Indiana. Call the dealer and tell them you need a check for the tax amount.

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    Edmunds Moderator

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