i agree. i mean, i've sold lots of cars in the past and probably the most amount i put on the bill of sale was 1500 bucks ! well, it wz a salvaged lexus gs300 to begin with.
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sales used tax you guys paid after purchase
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The answer is, tax laws are written in such a way that some products are treated differently from others. Some states apply sales tax to groceries (food products) purchased at the grocery store; others do not tax groceries. Some states apply sales tax to services; others don't. Some states don't even have sales tax. Some counties and cities have their own sales tax in addition to state sales tax.
Just to give an example of specific rules, the State of Illinois has a 6.25 percent statewide sales tax. Counties and cities in the Chicago area have additional sales taxes of another 0-2.75 percent, so in the city of Chicago, the overall sales tax on most products (not groceries) is 9.00 percent. If you buy a used car from a dealer and you live in Chicago, you will pay 9 percent of the purchase price as sales tax. If you buy a used car from a private party, though, the tax law is different; as noted here, if the purchase price is less than $15K, you pay $25-390, depending on the model year, and if the purchase price is $15K or more, you pay $750-1500, depending on the purchase price, but it's never more than 5 percent of the purchase price. Why is the tax rate different for a private party purchase than for a purchase from a dealer? Because the law says it is.
Why are the laws written so that cars are treated differently from hammers? Two things distinguish cars from hammers. First, cars must be titled and registered with the government, which means that there are reporting requirements for changes of ownership. Second, purchases of cars involve relatively large dollar amounts. If used cars cost $5 and used hammers cost thousands of dollars, the tax laws would probably be written such that there would be specific rules and tax rates applied to sales of used hammers. (The same way, for example, that many jurisdictions apply specific taxes to sales of houses, although those are called real estate transfer tax, rather than sales tax, but it's the same idea.)
Incidentally, I'm not sure whether your sale of a $5 hammer (or a $5000 hammer) to your neighbor would or would not theoretically require that sales tax be paid on the transaction; you claim there is no tax, but in fact, you need to consult your local tax laws. It's quite possible that there is a sales tax that, by law, is supposed to be paid, even on a small transaction. Just because a dollar amount is small, doesn't mean that there is no applicable law, but rather, that the law isn't enforced for small dollar amounts as a practical expedient. I can also assure you that if you register a business with the state for the sale of used tools to the public, you will be responsible for collecting and paying sales tax to the government on those sales, if that's required by the laws in your area.
ZERO
Oregon is one of those states. However, if they don't get you one way, they get you another. According to this article, Oregon ranks 35th among the states in overall state and local taxes as a percentage of per capita income. Not exactly worth gloating about, IMHO.
I have also been told that Washington state ended taxing of car registrations, so you wouldn't pay anything there either.
I posted accurate information. Why do you have a problem with that? Why do you look for an argument every time you post? NSXprime is for sharing relevant, accurate information, not for posting your petty personal insults.He asked a question, I gave an honest answer.
Trolling this thread too????
Not true. In Washington, you pay the state and local sales tax on the purchase of the car, as noted on the State of Washington website here, and you pay it regardless of whether you buy from a dealer or a private party. As in many states, the tax is called a "use tax" in private party sales, rather than a "sales tax", but it's the same basic idea. In Washington, addition to the general use tax rate, which depends on the location and is shown in this publication, there is an additional 0.3 percent sales tax.
The change that Washington recently made was, starting July 1, 2008, the tax rate will be based on the location of the buyer, not the seller. Many states with local taxes, including Illinois, have made this change so that there is no disadvantage for dealers located in a higher-tax-rate jurisdiction. What this means is that, if an Oregonian buys a car in Washington, he doesn't pay sales tax on the purchase because there is no sales tax in Oregon (which is probably what you heard about, in Oregon). But a Washington resident still pays sales tax on the purchase of a car (bought either in Washington or out of state).
HUH? You are the one posting argumentive statements. Nice edit job BTW.
I wanted to be honest... but the guy at NYS-DMV info window looked at my paperwork and said ....
" What 35K for a 1993 car??? Are you nuts.... buddy let me do you a
put down a $500 sales price... and no one will ever know" ... so I took his advice.
" What 35K for a 1993 car??? Are you nuts.... buddy let me do you a
put down a $500 sales price... and no one will ever know" ... so I took his advice.
Not true either. Oregon residents have NEVER had to pay Washington sales tax on purchases like cars. How many cars have you bought in Washington as an Oregon resident? I've bought 3.
I haven't followed up on the law but what I've heard from MULTIPLE washington residents is that it was just voted away....no more registration tax on cars for Washington resisdents.
EDIT: Found this on the DMV website for WA:
Annual vehicle registration fee Varies by weight of vehicle:
0–4,000 lbs: $43.75
Looks like there is a couple of counties still clinging on to it though.
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This entire topic is talking about the ONE-TIME SALES TAX (USE TAX) on purchases of an NSX. NOT about the annual vehicle registration fee.
So here's the lesson learned, offer $1k for the nsx, and insist they include a hammer for which you will pay the difference in asking price. Then throw the $49k hammer in your toolbox like its nothing, cause thats how badass you are...
In Texas they recently implemented the "blue book" system.
IMO, it's a complete scam and abuse of power. The employees there quietly agree with me as well.
I used* to sell motorcycles and bikes fairly regularly as a side business. I now just buy them for personal use, a new used car/motorcycle annually.
These policies really hurt the little guy. Here's a good example-I purchased a 3 year old honda sport bike that did not have original paint. The paint job was also fairly poorly done. He was also in a crunch to get rid of it, so I got it for about 2 grand less than a good condition, all original model would be worth.
The sales tax was about 120 dollars more than it should have been because they went by their "blue book". I told them this is outrageous and that the bike, although clear title, was not worth the amount they were basing the tax on. $120 isn't the point. I don't like to be ripped off, especially by the government -I- FUND.
They said I was more than welcome to have it appraised by an insurance company or their adjuster. I said "Fine, when is your adjuster available?". The lady then replied meekly that you have to schedule it and it costs roughly $100. She went on to say that more than 50% of the time the adjuster goes by blue book value regardless. Insurance adjusters are about the same but you have a better chance of getting the car valued lower.
So unless you are buying a car worth more than 12 grand or so, it's pointless to have it appraised even if you are paying taxes on several grand you shouldn't be! Complete horse$hit.
This really hurts the guys buying damaged and fixxer up cars the most. An el salvadorian friend of mine who works in the warehouse bought a 2002 silverado that had been in a front end accident for 6k [clear title]. He ended up paying taxes on it as if it was worth double that! He was too intimidated to talk to an adjuster and didn't even know he was basically being scammed until he told me it was unusual he had to pay so much taxes compared to his last fixxer-upper truck he bought before the new system.
The whole system of charging sales tax over and over again is also complete garbage. They should have a system where the original buyer pays the full tax, the 2nd pays 1/2 that, and so on until they level it out at 1% or just get rid of it. They have to charge some sales tax on the 2nd purchase because in many states it would then be much cheaper to buy a slightly*** used car [6k+ in savings on an NSX for example if someone was selling a used one with 50 miles].
IMO, it's a complete scam and abuse of power. The employees there quietly agree with me as well.
I used* to sell motorcycles and bikes fairly regularly as a side business. I now just buy them for personal use, a new used car/motorcycle annually.
These policies really hurt the little guy. Here's a good example-I purchased a 3 year old honda sport bike that did not have original paint. The paint job was also fairly poorly done. He was also in a crunch to get rid of it, so I got it for about 2 grand less than a good condition, all original model would be worth.
The sales tax was about 120 dollars more than it should have been because they went by their "blue book". I told them this is outrageous and that the bike, although clear title, was not worth the amount they were basing the tax on. $120 isn't the point. I don't like to be ripped off, especially by the government -I- FUND.
They said I was more than welcome to have it appraised by an insurance company or their adjuster. I said "Fine, when is your adjuster available?". The lady then replied meekly that you have to schedule it and it costs roughly $100. She went on to say that more than 50% of the time the adjuster goes by blue book value regardless. Insurance adjusters are about the same but you have a better chance of getting the car valued lower.
So unless you are buying a car worth more than 12 grand or so, it's pointless to have it appraised even if you are paying taxes on several grand you shouldn't be! Complete horse$hit.
This really hurts the guys buying damaged and fixxer up cars the most. An el salvadorian friend of mine who works in the warehouse bought a 2002 silverado that had been in a front end accident for 6k [clear title]. He ended up paying taxes on it as if it was worth double that! He was too intimidated to talk to an adjuster and didn't even know he was basically being scammed until he told me it was unusual he had to pay so much taxes compared to his last fixxer-upper truck he bought before the new system.
The whole system of charging sales tax over and over again is also complete garbage. They should have a system where the original buyer pays the full tax, the 2nd pays 1/2 that, and so on until they level it out at 1% or just get rid of it. They have to charge some sales tax on the 2nd purchase because in many states it would then be much cheaper to buy a slightly*** used car [6k+ in savings on an NSX for example if someone was selling a used one with 50 miles].
I'm a CPA. For internet sales, you are correct. Although states are doing everything they can to rearrange the nexus threshold requirements to try to charge tax on as much 'out of state' transactions as possible. It really is money grubbing to the highest degree. By the way, I agree that the 'repeat' sales tax is really bogus. But even more bogus (and I apologize for the off topic tangent) is federal income tax. First of all it is unconstitutional because it is a direct unapportioned tax. The constitution mandates that all direct taxes must be apportioned. Secondly, it was never properly ratified, meaning that not enough states ratified the amendment to institute the federal income tax in the first place. Lastly, there is no law anywhere in all of the federal law or IRS code that specifically states the requirement for an individual to pay federal income tax. Grrrr......
I'm glad you're not my CPA. Anyone who follows your advice would probably be in jail...
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Texas uses an appraised value now as a minimum to keep fraud down.
Both times I registered my second and third NSX the lady behind the counter would gasp and said "you paid that much for an old car, you could get a new car for that" I would laugh and say it is a special car.
Just pay the tax so you don't have to look over your shoulder.
I got pulled over by the police on the highway one time by a cop who just wanted to "talk cars". He told me how much I paid for my car; it is listed on their computers. Scary this information age!
Both times I registered my second and third NSX the lady behind the counter would gasp and said "you paid that much for an old car, you could get a new car for that" I would laugh and say it is a special car.
Just pay the tax so you don't have to look over your shoulder.
I got pulled over by the police on the highway one time by a cop who just wanted to "talk cars". He told me how much I paid for my car; it is listed on their computers. Scary this information age!
$4150.00. It's a deduction for most folks. Live a little.
It's a discretionary purchase. One should consider all ramifications of such purchases, and make their decision based on the overall cost/benefit analysis.
Grousing about tax you knew you were going to have to pay on something you didn't need to buy but did anyway seems to be sort of limp, like complaining about having to wash your shiny car because you want to keep it clean, or having to buy premium gas because your high performance engine will destroy itself when run on regular.
As to income tax and the Constitutionality of it, the SC has decided to disagree with the notion that it is extra-Constitutional. Since it has been their job to decide Constitutionality of American laws since 1803 or so, by definition if they say it's Constitutional, it's Constitutional.
It's a discretionary purchase. One should consider all ramifications of such purchases, and make their decision based on the overall cost/benefit analysis.
Grousing about tax you knew you were going to have to pay on something you didn't need to buy but did anyway seems to be sort of limp, like complaining about having to wash your shiny car because you want to keep it clean, or having to buy premium gas because your high performance engine will destroy itself when run on regular.
As to income tax and the Constitutionality of it, the SC has decided to disagree with the notion that it is extra-Constitutional. Since it has been their job to decide Constitutionality of American laws since 1803 or so, by definition if they say it's Constitutional, it's Constitutional.
Living in a state where the tourists pay most of the bills has got to be great.
I'm envious, except that it's twenty degrees cooler here. OTOH, your roads are more fun for NSXs.
Ha ha, very funny...I do pay my income tax, and I help others follow the 'law' and the 'rules'. But it really is completely unconstitutional, I've spent a lot of my free extra time researching in this area, look into it a little bit, and you'll see it...as to the Supreme Court, that's no surprise - as if they were elected to their posts by a popular vote of the people or something...I suppose you will be all for the Federal RFID's when they are implemented as mandatory too...because the government says its for the good of people in the best interests of 'national security' so the 'boogey man' doesn't get us.
But...back on topic, Where I'm at, its a 7.75% sales tax, and I agree that it should just be factored into the car's price, like initial maintenance, PPI, and shipping/gas costs to get it home if it is not a local purchase. It's just what things cost - I'm planning on about $3k for TTR at the DMV next month when I get mine...
Zeit Geist
This is probably a discussion for the Off Topic forum, but...
We do not live in a pure Democracy, and the Constitution specifies that process with regards to the appointment of SC judges. One cannot very well use purported extra-Constitutionality as criticism while also intimating criticism of the Constitution, at least logically.
I suppose you will be all for the Federal RFID's when they are implemented as mandatory too...because the government says its for the good of people in the best interests of 'national security' so the 'boogey man' doesn't get us.
Being "All for" something has little to do with recognizing that it is Constitutional. The authority to declare what is not Constitutional belongs with the SC, and not with those who disagree with the SC's rulings.
Ours is 8.25% in LA County IIRC, and I agree, it's best to view it as a cost of ownership.
Your a sly guy Charlie! Hope all is well with your $500 car! LOL!
I'm another ZERO sales or better yet "Use Tax" person here. In our state the laws are such that private party car sales are not subject to the "Use Tax" and that included out of state purchases. Only if you buy used from a dealer do you pay tax.
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