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Car Financing, Car Leasing
#1047 of 1081 Re: Va dealer says sales tax is 6.17%- can this be true?? [ang4200]
by kyfdx HOST
Aug 06, 2011 (10:26 am)
VA does have some sort of 0.17% tax for vehicles, on top of their 3% sales tax.. It is possible (as alluded to above) that it is some sort of inventory tax, that could be charged to any purchaser, regardless of residence.
I don't know that for sure, but it would make sense in this case. For the sales tax, you'd definitely pay your home state tax, and not where you bought it (ergo, the 6% for Maryland).
#1048 of 1081 Taxes on Lease Assumption (from CT to NJ)
Oct 28, 2011 (10:10 am)
I am thining of assuming a lease that is currently owned by someone in CT. I am wondering about the taxes I will have ot pay once I register the cal in NJ. I am being told many things. Either a) that they will just charge 7% on top of the motnhly payment. or b), that I have to pay 7% of the total outstanding payments on the lease term - UPFRONT, or c) 7% of the total lien amount outstanding - UPFRONT.
Can anyone help clarify? Thanks.
#1049 of 1081 Illinois sales tax question
Dec 02, 2011 (7:24 am)
I live in tazewell county Illinois and I'm looking to purchase a vehicle after the 1st of the year. I'm looking for a specific used vehicle, and as of right now, there are a few I'm interested in up in the chicago area, as well as some just north of there in Wisconsin.
Chicago and it's surrounding areas all have much higher sales tax then the county I live in. I don't know what Wisconsin has for sales tax. My question is, if I buy a car from the chicago area, will I be charged sales tax from the county I purchase the vehicle in, or from the county that I live in? If I were to get it from Wisconsin, how would the sales tax situation work out?
#1050 of 1081 Re: Illinois sales tax question [markag]
Dec 02, 2011 (8:12 am)
In Illinois you pay the tax for the county you buy in, not the county you reside it. This was brought home to my wife & me in September when we were car shopping as we live in the western suburbs of Chicago and one dealer was touting that they had a lower sales tax than Cook & the collar counties.
If you buy in Wisconsin there are a couple of ways to do it. If the dealer does Illinois sales often enough they may be able to charge you Illinois sales tax (not sure what rate .. maybe just the base state rate or the rate for your county) and that's the end of it. Failing that, they will be legally obligated to charge you WI sales tax. You, in turn, when you register the car in Illinois will be obligated to pay IL sales tax (all at once). You should, though I'm not sure about WI law in this regard, then be able to file a claim with the WI DMV to have your WI tax refunded.
BTW, if you change your mind & buy new and buy this year, the sales tax is deductible on your income tax.
#1051 of 1081 Re: Illinois sales tax question [fushigi]
Dec 02, 2011 (11:24 am)
Thanks for the help. That is not what I was hoping to hear as Chicago area sales tax is 7.25% instead of 6.25% where I am currently living.
I am looking for a very specific car that is no longer in production, so I won't be buying new. I'm not going to be able to take advantage of it on my tax return, but that is fine with me.
#1052 of 1081 Re: Illinois sales tax question [fushigi]
Dec 02, 2011 (11:52 am)
sorry for the double reply, but this has seemed to contradict other information I have been finding. I keep reading that you pay sales tax based on the location where you live, and not where you buy. Is that the case when buying within Illinois?
#1053 of 1081 Re: Illinois sales tax question [markag]
Dec 02, 2011 (8:37 pm)
From page 34 of http://tax.illinois.gov/Publications/Sales/STS76.PDF
Sorry for the icky cut-n-paste but note it mentions the address of the business, not the buyer.
#1054 of 1081 AZ Sales Tax
Dec 30, 2011 (3:00 am)
I just purchased a new vehicle in Maricopa County, AZ
Assume the agreed upon price was $55K; the agreed on trade in price was $15k.
Dealer calculated sales tax on new vehicle price. Shouldn't this tax be calculated on $40k instead?
(new vehicle-trade in)
#1055 of 1081 Re: AZ Sales Tax [opita1]
Dec 30, 2011 (11:16 am)
AZ is a trade in allowance state so you should only pay tax on the difference.
Did you buy or lease? Many states tax the entire value of the purchase when leasing.
#1056 of 1081 tax question - lease trade
Jan 02, 2012 (7:56 am)
I am coming off a lease and due to market conditions have equity in my car.
The lease agreement indicates my purchase price and then has the sentence. "the purchase option price does not include fees for tags, taxes or registration"
When I leased the vehicle, I did not pay tax up front, however I do pay tax each month along with my monthly payment. It makes sense to me that if i want to buy the car at the end of my lease, I would need to pay tax. this would be 6.25% of $16,000 or $1,000.
I also understand if I had originally purchased the car as opposed to leasing, I would have paid the tax up front so if I was trading it in, it would offset the new car price reducing my tax cost.
here is my question - if there is equity in the car and the dealership is buying the car, how does the tax work? Is tax payable and by whom?
For example, if they value my car at 18,000. Do I net $2,000 or am I only going to net $1,000. Is the answer different if I do the transaction to (a) reduce cap cost on my next lease or (b) take a check for the difference.