Ask the Car People.SM


Vehicle Sales Tax Questions

1081 messages,  Last post on Mar 01, 2013 at 6:35 PM

You are in the Smart Shopper Forum.

What is this discussion about? Car Financing, Car Leasing

Messages Page 108 of 109

#1069 of 1081 Response from DoR by zyaaaaa

Mar 30, 2012 (3:11 pm)

I spoke to the DoR today. They told me that as long as the trade was part of the same transaction the value of the trade in is credited towards price for the sales tax calculation.

#1070 of 1081 Re: Varied tax rates from different source in CHICAGO IL [macno0b] by wwj1

Jul 12, 2012 (11:02 am)

Replying to: macno0b (Jun 20, 2008 12:46 pm)
Illinois vehicle sales tax is very confusing. Check this site for a pretty good overall answer for anyone in the Chicago area.
 
http://salestaxoncars.com/

#1071 of 1081 Getting sales tax financed by doowle

Jul 16, 2012 (5:03 am)

Question from Auto Dealer point of view:
Usually when we have an out of state resident purchase a car here in California, we deliver the vehicle outside of California on a one-trip permit. These out of state delivery sales are usually to residents of Arizona, Oregon, or Nevada. We collect no sales/use taxes, and the buyer has to pay sales/use tax in their resident state when they title the car there.
 
However, we have a lot of (non-cash) buyers asking how they can include the sales tax in the amount financed.
We were talking about what if we were to give the people who live in states w/reciprocity one-trip permits (to avoid DMV registration fees becoming due) but did NOT deliver the vehicle outside CA, so CA sales tax would be due and could be included in the contract.
Assuming they live in a state with reciprocity, when they title the vehicle in their home state they would then only have to pay the difference btw what is normally due in their state less whatever was paid in CA, is that correct?
 
And if so, what rate would we collect? Would we collect including the full county/city sales & use tax rate of where it was sold? Or....?

#1072 of 1081 Re: Getting sales tax financed [doowle] by dwynne

Jul 16, 2012 (11:06 am)

Replying to: doowle (Jul 16, 2012 5:03 am)
I have done many out of state deals - as a purchaser or lessee. Often the dealer will write me a check to pay the taxes, sometimes they write a check to my DMV (those can be tricky to use), and my credit union sent me two checks - one to me for the taxes and one to the dealer. In all cases I handled the taxes and title myself. I guess a certain amount of trust is needed as in some cases I could have not done the title correctly. Often the MSO will already be filled out by the dealer (to limit mistakes or intentional changes). In all cases the dealer relied on my knowledge of my state and local rates and fees. If a customer does not know this info the I am not sure how they expect the out of state dealer to know it
 
Usually the bulk of the tax burden can be easily found so this large amount could be included in the deal, then let the customer worry about the smaller fees and such.

#1073 of 1081 Re: Getting sales tax financed [dwynne] by jwilliams2

Jul 16, 2012 (1:20 pm)

Replying to: dwynne (Jul 16, 2012 11:06 am)
Our lenders always required us to handle the registration for all financed or leased cars. We either did it ourselves or used one of several outside vendors who specialized in this.
 
We had to provide copies of the registration paperwork to the lenders in order to get funded, and we did a lot of out of state sales. So we never had a problem with rolling in the taxes, as the dealership paid them to the State involved and then included them in the amount financed.

#1074 of 1081 Alabama/Georgia Car Sales Tax by jwiggins1984

Sep 11, 2012 (9:12 am)

Hi,
 
I live in Alabama. I purchased/financed a car in georgia. When I went to my local DMV to get the cars registration/tag they informed me that the dealership charged a 7% sales tax when my state only charged 3%. She then informed me that the state will send me a refund for the difference. Now I had wanted in line forever, and it was very busy to I just said "oh ok" and left. Now, I don't know if that money is mine to keep or go back to the dealership or what. Also, I'm trying to figure up the difference. Is it the percentage on only the sale price of the car or after the finance charges are factored in or what? Totally confused any help is appreciated!

#1075 of 1081 Re: Alabama/Georgia Car Sales Tax [jwiggins1984] by igozoomzoom

Sep 11, 2012 (2:42 pm)

Replying to: jwiggins1984 (Sep 11, 2012 9:12 am)
Total sales tax in Georgia is calculated based on the total selling price of the vehicle MINUS any trade-in allowance (if applicable). Finance charges don't factor into the tax calculation.
 
You should start by contacting the dealership where you purchased the vehicle. Ask to speak to someone in the business office and you just might find someone willing to help....but probably not! =(
 
The next step would be to contact the Georgia Dept of Revenue and explain your situation. Here is a link to their Sales & Use Website, including some forms that might help you- GA DOR
 
I am a resident of Georgia and I have purchased my last two vehicles in Tennessee. In both cases, the dealer didn't charge any Sales Tax and had me sign forms stating that I was an out-of-state resident. I also had to sign sworn statement that I would be immediately transporting the vehicles to Georgia and registering them there.
 
Before I could purchase a Georgia tag, I had to visit the nearest DOR office and pay the applicable Sales Tax rate for my county- (6%). The county tag office required proof that the tax was paid before they would register the vehicle.
 
Good luck!

#1076 of 1081 Re: Illinois sales tax question [fushigi] by 99s70

Oct 27, 2012 (11:32 pm)

Replying to: fushigi (Dec 02, 2011 8:37 pm)
I believe the above reference is outdated. Section 6 Line 4 of ST-556 now refers to the buyers tax rate.

#1077 of 1081 Re: Hi-Any advice will ber appreciated [mikej8] by kage4307

Jan 07, 2013 (6:20 am)

Replying to: mikej8 (Mar 25, 2007 1:12 pm)
you pay tax on the price on the back of the title, whatever you and whoever is selling it agree on minus taxes, i'm sure you could ask them what price they'll be putting on the title

#1078 of 1081 Private Auto Sales Tax in Georgia by pefred

Jan 07, 2013 (2:24 pm)

In 2012, the GA Legislature passed a bill, a part of which eliminated a really great part that stated that, and I paraphrase here, "people who buy used cars from individuals do not have to pay sales tax". The new law treats individual and dealer purchases the same. However, although the law was effective on 01/01/13, portions of the law don't go into effect until 03/01/13. However, I have not been able to figure out if the individual used car sales tax portion went into effect on January 1, or goes into effect on March 1.
 
So, here's my question for anybody who knows the new law. I'm planning on selling one of my cars between now January 7 and March 1 on AutoTrader as an individual. If I sell the care prior to 03/01/13, does the buyer have to pay any sales tax. Any help would be appreciated.

Messages Page 108 of 109

To POST a message, please Sign In.

Advertisement

Browse by Category

Browse by Vehicle
   View All Vehicles

Browse by Board
Browse by Topic
View All Topics

Edmunds Community

Advertisement