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Would sales tax be calculated like this:
18,000 - (13000 - 98000) = 14800 Taxable Amount
OR
18,000 - 13000 = 5000 Taxable Amount
If it is the first one, then I think we'd be best off paying off the trade-in before trading it in.
Hopefully that makes some sense.
It should be Selling price - trade value = Taxable amount.
regards,
kyfdx
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I will be moving to CA for my first job in September and will need to register this car when I move out there (in the first month maybe?). I understand that CA charges a sales tax on private party titles. From their website, if you acquire a car and move into CA within a year from purchase date, you are expected to pay CA sales tax on private party titles.
Will they make me pay the tax on the fair market value of the car that is twice the amount that I paid for it? Or is there a way to show them that since I did not have to pay sales tax in GA, I do not have to pay it in CA.
Thanks for your help in advance,
--Jason
I had a trying day at two different dealerships today with conflicting information. I live in NC and want to lease. Sales tax here is a 3% highway use tax. Is it computed on the total MSRP of the vehicle or MSRP minus the residual (the part I'm making payments on) I realize there are other fees involved that I'm not addressing.
Also, one of the dealerships I'm negotiating with is in VA, the other NC. From past experience I understand that I pay tax where I live. So living in NC and buying in VA should not effect the way they are computing the tax, right? The VA dealership is incorporating sales tax as well as property tax into the lease payments. They are claiming property tax is 6% of the monthly payment. Is that correct?
Thanks for the assistance.
Thanks
Other than possible Federal gift tax issues (running both ways here), there's should be no problem with the title transfer. Obviously, a gift never involves a bill of sale. Family members gift cars all the time to each other and the "seller" (old owner) merely writes "gift" in the "selling price" area in the assignment section on the back of the title.
Steve
Tax rate in CA varies by location, but is around 8.25%, more or less.. Multiply that by your current payment, and that's how much it will go up.
regards,
kyfdx
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I am worried about paying taxes in MA (or OH) and then having to pay taxes on that vehicle in NY.
thanks,
ws46
___________________
# If you paid out-of-state sales tax, show the out-of-state dealer bill of sale. The bill of sale must show the purchase price and the amount of out-of-state sales tax paid to the dealer. Use form DTF-804 to claim credit for the state and local sales taxes you paid in the other state. This process can reduce the amount of your NYS sales tax if NYS and the other state have an agreement about sales tax.
I see a business opportunity to deliver CA cars to Vegas or Reno. I hope to get a Hybrid Altima from CA on the next couple days. I will let you know how it goes.
I am buying a used car in GA but moving to CA t1-2 months after purchasing it. Will I be required to pay CA sales tax when I move to CA? Or should I not pay the GA sales tax and wait until I move into CA? If so, how would CA determine sales tax on vehicle .. i.e. fair market value vs. bill of sale? thanks in advance.
I posted the following related question in another lease thread:
My lease of a 2004 330i is about to end, and I am interested in purchasing the vehicle. I live in Maryland and the car only has 25,000 miles.
Is there any way I can avoid paying "double tax" on the car, since I already paid sales tax on the full purchase price of the vehicle when I initially leased the car? Are there particular dealerships or other 3rd parties who can offer some kind of paid/unpaid service to help avoid paying tax again?
If so,then you don't pay again.
Look at your lease agreement and see if there is a section that deals w/ taxes.
Most states,the tax is paid per month as part of the lease payment.
In cases like that , BMWFS is correct in that you never paid the full tax on the car.
On a side note, my insurance company told me that in NY there is no General Sales Tax on a lease and tried telling me that any "tax" was put on by the dealer. If there's one thing I know, is that there is a tax on everything in NY.
Any help is appreciated, especially now since this should be settled soon. Thank you in advance.
If this event was to happen here where I live then I would be confident in telling you that it is the insurance agencies responsibility to pay you the taxes because you will be required to pay them again when you replace the total loss.
1. Lease
2. New York
I leased an Infiniti M35 in October, 2 year lease, in NY. Paid the taxes on my monthly payments upfront, which is done here.
Also does anyone know the Sales Tax for living in Westchester County NY - I would be buying the car in NJ... Still confused after reading these posts.
Thanks,
ALABAMA 334-242-9000
ALASKA 907-269-5551
ARIZONA 602-269-5551
CALIFORNIA 800-777-0133
COLORADO 303-205-5607
CONNETICUT 860-263-5700
DELAWARE 302-744-2502
DC 202-727-5000
FLORIDA 850-922-9000
GEORGIA 404-362-6500
HAWAII 808-532-7700
IDAHO 208-333-8663
ILLINOIS 217-785-3000
INDIANA 317-233-6000
IOWA 515-237-3110
KANSAS 785-296-3621
KENTUCKY 502-564-2737
LOUISINA 212-925-6146
MAINE 207-624-9000
MARYLAND 301-729-4550
MASSACHU 617-351-4500
MICHIGAN 517-322-1460
MINNESOTA 651-296-6911
MISSISSIPI 601-923-7141
MISSOURI 573-751-4509
MONTANA 406-846-6000
NEBRASKA 402-471-3918
NEVADA 775-684-4368
NEW HAMP 6603-271-2251
NEW JERSEY 609-292-6500
NEW MEXICO 505-827-0700
NEW YORK 518-486-4714
N CAROLINA 919-715-7000
N DAKOTA 701-328-2725
OHIO 614-752-7671
OKLAHOMA 405-521-3221
OREGON 503-945-5000
PENNSYLVANIA717-391-6190
RHODE ISLAND401-588-3020
S CAROLINA 803-737-4000
S DAKOTA 605-773-3541
TENNESSEE 615-741-3101
TEXAS 512-465-7911
UTAH 800-368-8824
VERMONT 802-828-2000
VIRGINIA 804-367-0538
WASHINGTON 360-902-3770
W VIRGINIA 304-558-3900
WISCONSIN 608-266-1466
WYOMING 307-777-4709
Will I be taxed 7% again in NJ when I register the car, or will NJ credit the amount since it is listed on the bill of sale?
Should I refuse to complete the purchase with this charge included?
Thanks!
No.
You'll get credit.
No.
Also, see post #650 (above).
HELP!!
'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
I don't think that principle would apply here. The sales tax is the buyer's obligation and it is only a courtesy that a dealer transfers funds to the state on the buyer's behalf.
tidester, host
SUVs and Smart Shopper
True. But didn't the poster say he lives in DC? Regardless of where he bought the car shouldn't he pay the DC tax only? Unless I'm misunderstanding this it seems funny that the dealer is trying to charge VA tax.
2019 Kia Soul+, 2015 Mustang GT, 2013 Ford F-150, 2000 Chrysler Sebring convertible
You've already agreed to the processing fee with your OTD offer. That the dealership processed part of the transaction incorrectly doesn't entitle you to all of the money back. But, the dealership should correct their mistake. This seems like a simple matter the dealership should be able to handle. :confuse:
edited: o.k...if the dealership is charging you more because they charged you VA tax when they should have been charging you DC tax (which is higher)... then that is their problem. Your OTD price was accepted by the dealership. They need to move the money around to account for the extra in tax. Their loss... tell them to pound salt.
Don't know if this was the dealerships intent,maybe they are just incompetent, but a nice scam to get people to pay more for a car than they intended. Pull the old, "OOPS we made a boo boo".
They DO have restitution in this case, I believe, and that is what I said before about refunding your taxes and reg fees and let you do it yourself.
Think of it this way, since you didn't catch the mistake yourself, what would happen if it was the opposite and they charged you too much tax? What would you do? Let them have it because you guys agreed to an OTD price and that's that? I have a very strong suspicion you would want that money refunded.
'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
so, if the tax in VA is less,and you buy the car in VA you pay the VA tax,and then pay the difference to the District.
DC however,doesn't issue such a credit.
So, depending on the state,the dealer should have collected either no tax at all and had the customer pay DC directly,or collected the DC rate.
Now,when a deal is being worked,the tax and fees are part of the computer program,so no one really looks at it too hard.
Obviously,no one told the desk manager that this person resided in DC,and the F&I dept didn't catch it either.
Mistakes do happen.
Taxes are not the dealers responsibility,they are the buyers.
Bottom line,the buyer owes exactly what they should owe.
They would if they were doing their job properly. The desk manager and F & I had buyers lisence copied and paperwork in front of them.
Mistakes do happen
Sure they do... so do scams. Hard to say which applys here. Either way I wouldn't be returning to this dealership.
Taxes are not the dealers responsibility.
They are when an out the door price is agreed on.
'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
That's exactly right. An Out the Door price includes taxes, fees, lisence... and oh, the price of the car.
I think some people, namely the dealership in question, are a bit unclear on what an OTD price actually means.
Actually,they are not.
standard language in any purchase order is a phrase stating that the dealer is not responsible for state and/or federal taxes and fees.
the fees are only estimated,and it is the buyers responsibility to pay them.
Do you do that to your customers? Agree to an OTD offer, then tell them, "oh... of course you'll need to pay taxes and fees on top of the OTD price".
I sure wouldn't buy a car from someone who tried to pull a stunt like that.
When a customer and dealer agree to an OTD price (look up the definition in Edmunds), it then becomes the dealerships responsibility to fill out the purchase order in the appropriate manner. Of course, the buyer should check for the dreaded "human error" that is not as rare as it should be.