Dr.Ruz

i was hoping some people out there could help answer a question for me:

if i purchase a used car from an individual in my state, do i have to pay sales tax???

i've been getting mixed responses from various friends, but i really don't know the answer. some have told me that when i get my title/tag transferred, i must pay sales tax on the amount of the purchase.
if this is true, is there any way around it?? i will be getting a car loan so the loan company will be getting the title actually...does this matter?

this really sucks. i know i'm getting a killer deal on the S4 i'm buying, but now if taxes are included it would take away the feeling of getting a great deal

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-Silver CL-S, spoiler
-Comptech headers
-Comptech sways
-K&N drop-in filter
-Polarg M6 road lamps
-14% tint all around
-Viper alarm with Car Starter

Check out my sold 98 Honda Prelude:
www.hondaprelude.com/setups/setupsdsply.asp?id=5644&gen=5&orderby=

kensteele

That is what taxes are designed to do: take away the feeling that you got a helluva deal.

http://www.acura-cl.com/ubb/Forum1/HTML/003587.html
http://www.acura-cl.com/ubb/Forum1/HTML/003763.html

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* 2001 Acura CL Type S * Blk/Blk * Navigator * Spoiler * Moonroof Visor * V1 *
* Since 3/31/2000 *
* Road Warrior *

mrdeeno

in pa, there's a "fair market value" form, which has the purchase price, the listed price from a book that the state goes by (i think it's kelly's, the long black one), and then theres a part where you put down why you paid less if you did pay less for it (ie "high mileage", "needs body work", "sold to relatives", etc.).

or you can get it as a "gift". there's a gift form to fill out with the buyer and seller's address and stuff and if they're related.

if it's a pretty high market price (i don't know what constitutes "high") and you paid a really low price, unless the reason is likely, they'll probably question it (ie proof of repair receipts, mileage, etc.)

i dont' know what/when they'd look into gifts though, but i think if it's a pretty big gift to a non-relative, they'd question it.

and then if you took a loan out for it, then you're pretty screwed 'cuz you gotta provide all that info (the title goes straight to the lienholder when it's issued, so it can't be a gift, and the loan amount pretty much shows how much you paid for it).


but you know what really sucks?! when i bought my car, i paid sales tax on $30k+. if i resell my car, then the buy pays tax on $20k+ (or whatever the amount is), so the gov't is getting all tax money again (not quite as much, but still a lot). and this is just for the priveledge of buying smoething...it's a crock.

[This message has been edited by mrdeeno (edited 05-20-2001).]