Vehicle Sales Tax Questions

avatexrs1

I'm in Texas. Let's say I want to lease an MDX and the cap cost is $35k and I have a trade-in worth $10k. I know I have to pay tax on the selling price in Texas at 6.25%, but would that be on the full $35k or the net $25k?

And since I've always heard I should pay as little as possible up front to reduce the cap cost as possible (in case of an accident, etc.), wouldn't it make sense to:

1. Roll the tax amount into the cap cost instead of paying it up front?

and

2. Get a check for trade-in for the $10k (less what has to be paid at closing, like first months' payment, etc.) instead of reducing the cap cost?

bucknut1

In Georgia, is sales tax paid on MSRP, MSRP-discount or MSRP-discount-tradein????

anonymousposts

Sales tax will be paid on Sales price - trade. The rebate will be taken off the total sales price.

stickguy

Boy, talk about throwing you a fat pitch...

anonymousposts

htulud

In GA, effective January 1, 2006 - When applying for a Georgia title for a vehicle that was purchased from an out-of-state/country dealer or business, Georgia sales tax must be paid at the time of application or proof must be submitted that the sales tax has already been paid.

If I understand correctly, I could only avoid paying sales tax in GA if I buy a car from a "Private party" either locally or from out of state seller (not a dealer).

kotnmthkng

I am planning on buying a car from a dealer in New Jersey, but I live in Virginia and I want to get the car regestered in VA. I know tax on cars is 3% in VA and 6% in NJ. Can I leave the dealer without paying tax or do I have to pay it there?

How much should the price come down if you take out taxes, title and plates?

stickguy

no need to pay tax in Jersey. You get a temp transport tag (30 days I think) and then take the paperwork to the VA DMV to get it registered and pay the tax.

You will have to pay for the temp tag, but I think it is pretty cheap.

anonymousposts

The dealership I work for is trying to get a duplicate NJ title but all NJ DMV offices are shut down. That's absurd.

stickguy

the whole of state government is shut down (except for certain functions deemed essential, and DMV isn't one of them) until they agree on a budget. Almost comical in some ways, unless you need to get something like a title.

Oh, and if you want to commit political suicide, take away the casinos from all the senior citizens that bus in every day, then tell them they won't get reimbursed for their prescriptions. Not happy people.

qbrozen

Ahhhh... funny this comes up. My wife and I were talking about it in the car on the way to work. I was pointing out how this has not affected our lives one iota, and was trying to figure out what could possibly be closed that would pose a problem. So there we have it. The DMV. So maybe if we just automate the DMV, we could continue without our government for another month.

We have also been discussing the casinos (mainly because we want to take a trip down there in the next couple of weeks). I still find it VERY strange that private businesses can be shut down in this manner. Oh well.

lyantos

Hello.
I bought a Camry 07 from a dealer in Chicago, IL, but I live in Champaign, IL, thus I will register the car in this county.

So, my question is how much should I pay for the tax rate. The tax rate in Chicago area is 7%, and the Champaign county is 6.25%.

As far as I know, one should pay the tax based on where the vehicle is registered, not bought. But, when I searched the illinois revenue site, it said as "The tax rate the dealer is required to collect is preprinted in Section 6, Line 4 (ST-556 form). This rate is based on the registered business location of the dealer that is preprinted in the upper left portion of Form ST-556, thus Chicago".

So, which one is correct, especially in Illinois?
Help me to solve this issue.
Thank you and have a great day,

stlcarguy

I apologize in advance if this has been asked already, but in Illinois, do you pay tax on 100% of the Sale price of the new car, or Sale price minus Trade-in?

Thank you!

jdixon01

I am looking to buy a new FJ Cruiser. I am selling our 2004 Porsche Cayenne S. To maximize my opportunity, I want to sell the Cayenne on the open market (read Ebay). The problem is that I will have to pay sales tax on the entire FJ purchase price. Is there a way to offset once I have sold the Cayenne?

BTW - thinking of purchasing the FJ in California - I am an Arizona resident.

Any help would be appreciated.

harveyw

DMV charged me sales tax and another tax called pm tax.
What is that??? :sick:

Kirstie_H

A quick trip to your state's DMV website:
http://www.dps.state.la.us/pmtaxtable.nsf
lets you know about the parish & municipality tax.

sbflorida

Sorry I have tried to go through messages.
It looks like in the state of florida from www.myflorida.com you pay sales tax in a deal with a trade on the balance after the trade in is taken off. Otherwise sales price minus trade in value =final price and the 6% sales tax is calculated on that.

Is this correct?

Thank you.

packersooner

I recently purchased a new vehicle in Montana after my former vehicle lost its transmission. I am moving to Missouri in a couple of weeks. Since Montana has no sales tax, I figured that it would be best to tag/title it before I moved. I recently read that I will be taxed in Missouri if I didn't own and use the vehicle in Montana for more than 90 days. Another interesting twist is that I will be staying in temporary quarters in Missouri for 4-8 weeks...and then purchase a house.

The last thing I want to do is pay the $450 in Montana and then have to go and pay nearly $2000 in Missouri for sales tax and other fees. Would owning the vehicle for a month in Montana and staying in temporary quarters in Missouri up to two months equal the 90 days? Should I just wait 2-3 months and then go tag/title it in Missouri since the state requires that it be done within 30 days? How would they know where I was living until then? I don't think I would be a Missouri resident until I bought a home???

So should I gamble and pay the fee in Montana and hope I go tax free in Missouri...or just suck it up and pay the Missouri taxes?

J

tidester

If you were not a resident of Missouri at the time of purchase then I think you should qualify for a non-resident exemption. I know New York state has them but you'll have to check the specifics for Missouri.

tidester, host

Kirstie_H

Here's the link:
http://www.dor.mo.gov/mvdl/motorv/titling.htm#newresident

Good luck in any case... registering from out-of-state in Missouri is a painful process, and requires trips to at least 4 different agencies. Plan ahead

packersooner

Thanks for the reply!

Yeah, I have been to that site, and it does look like it could be a painful process. Are they really strict on those rules? For example... the 90 day rule. We will not have owned our vehicle for the full 90 days before moving to Missouri.

Kirstie_H

Yeah, they will be looking for on or over the 90 days, sorry. All of the license/registration offices are contract offices - meaning they aren't owned by the state, but are franchises. They don't have any leeway, and go exactly by the book.

I recently went through this process in St. Louis, so let me know if I can be of any help! If you're moving to this area, I can at least tell you which offices are the most convenient and least crowded.

packersooner

I guess my real question is how they know how long I have been in the state. I will have owned the truck for over 30 days before leaving MT. Then I will be in temp quarters for 1 to 2 months before buying a house. During my time in temp quarters, I will be in and out of the state, spending time in LA and OK. Personally, I do not think this means I am a resident. What are your thoughts? How do they check to see how long I have lived in MO? My thought is that I would need to be in permanent housing for 30 days before being considered a legal Missouri resident.
Thanks!

Kirstie_H

Well, I'm guessing... and really only guessing... that you're a resident once your billing address changes and you no longer own/rent anything in MT. This would also be the point at which you get a MO drivers' license. I don't know legally what makes you a resident, but I suspect that once you change your drivers' license, you're a resident.

packersooner

Yhanks so much for all of your help!

cccompson

I could well be wrong but I'm not aware of any state that offers a tax credit on a trade for a used vehicle.

jbollt

I'm not aware of any state that offers a tax credit on a trade for a used vehicle

Well, AZ for one. We only pay sales tax on the difference betwen the traded-in vehicle, and the purchased vehicle.

$10,000 trade
$25,000 new vehicle
$15,000 is taxed.

british_rover

CT is the same. Doesn't matter new or used.

[Deleted User]

ditto for CO...

vegasresident

Ditto here too.

In Nevada we get a tax credit for trade ins. I did it last weekend.

That is because a trade in is applied like a discount rather than a down payment on the new car (like a rebate would be) and it is the discounted price that is taxed.

We traded in a car for $7700 and got over $400 in tax credit towards the new car making our trade in worth 8100, $100 more than CARMAX offered.

kyfdx

Actually... in Kentucky, that is the only time that you get a tax credit on a trade-in... When you trade one used car for another.. Buy a new one? No credit.

Make sense? uh... nope..

cccompson

My thanks to folks for chiming in - it's nice to learn something every day!

qbrozen

i'm curious what state you are in, cccompson.

Anyway, just to add to the list, NJ gives credit for new or used. believe me, i've traded enough to know!

british_rover

So I got this Range Rover classic that I just took in trade only needs head gaskets, exhaust system, front axel seals etc.

YOu can get it reeallllllll cheap. :P

qbrozen

sweet! sign me up! I've been looking for a new lawn ornament.

british_rover

In all seriousness I might just buy it for a trail vehicle. Its not like I don't have enough rover expertise at my finger tips.

I swear our shop foreman can fix some cars just by touching the hood.

cccompson

I'm in Ohio where tax credit availability for a new car trade is relatively recent (maybe started 10 years).

dp1664

With corrected spellings.. sorry new at this

I am getting a car from a friend who does not need it, but wants me to have it transferred to my name. Do I have to pay tax on the value of the car even though I am not actually going to pay him any amount? If I have to pay the tax; then on what amount... can it be a nominal amount

TIA

qbrozen

NJ has gotten strict on this over the past decade or so. Yes, you have to pay tax, and, no, it can't be a nominal amount.

You can go ahead and state its a gift or whatever, but they will send you a bill after you register the car for the sales tax on what THEY BELIEVE the car is worth.

skipwin

Can a CA owner drive the vehicle to the AZ state line, so that you can take possession without paying CA sales tax? Or do you have to have the vehicle "shipped" out of the state? - showing records that a professional group moved the vehicle over state lines

mnoji

Is there a sales tax imposed in Arizona if you purchase a used car from a private party? If so, how is it done?

tidester

Is there a sales tax imposed in Arizona if you purchase a used car from a private party?

I never bought a used car while I was there but I believe you'll pay sales tax when you try to register the vehicle. Anyone know for sure?

tidester, host

janp57

I live in Illinois and would like to buy a used car from a state that does not charge sales tax on used cars. Dores anyone know which states do not charge sales tax on used cars? When I get the car back to Illinois, do you know if there is any taxes on it there? Thanks!!

kyfdx

You'll have to pay sales tax to Illinois when you register the car..

killerdad

I am in Pennsylvania and I bought a new car and traded my leased car. The dealershipp called me a week later and told me I had to pay sales tax on my leased car, But my lease had option to buy. dose anyone know if this is true, I thought if | did not buy the car I did not have to pay the sales tax.

tidester

I think you'll pay sales tax on at least the portion you financed. Take a look at this article: Car leasing advice at Edmunds

tidester, host

borec

Hello,
I am thinking about buying a 2nd hand car in US (probably in Florida) and then ship it out to South America. Do I need to pay some kind of tax even though the car will be shipped out? Is there some kind of procedure for this case, like returning the number plates or something? Also I would like to know what fees apart from the tax one has to pay if one buys a second hand car- and how much are these? (i cannot find any information on this and I have checked numerous internet sites)

kim33

Hi-
I am thinking about trading cars with a family member. The net result will be me paying them $2,500 on a vehicle worth 15,000 (they live in another state and will be getting my car in exchange). Does anyone know what amount I will have to pay sales tax on (the 2,500 or 15,000). I could not find any information on weather Pa taxes on the sales price or car value.
Thanks

phil234

I bought a new car (from out of state) and have not registered it in my home state(NY). Is it legall to sell it (due to some unexpected circumstances I have to sell it). There is no lean on it(fully paid). The car has only a few miles. Obviously, I will be taking a hit in the price, that's ok.

I am looking to see if it is legal to do it. Or do I have to register and pay the state tax before I can sell it.

Thanks a lot.

twig1027

I am in the military and my permanent address is in Connecticut. I purchased a motorcycle in South Carolina and the dealer did not charge me sales tax. I am registering it Georgia and they want me to pay sales tax there. I was told that I do not have to pay it in GA but when I get back to Conn, that is where I will have to pay it when I register it there. I have friends who did the and they did not pay the sales tax in GA. Does any one know for sure? Thanks