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Vehicle Sales Tax Questions

947 messages,  Last post on Nov 23, 2009 at 10:05 AM

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#21 of 947 Re: 8% PST in Ontario [boomer1b] by mfullmer Sep 17, 2004 (5:12 am)
A person who files for Bankruptcy (7) is able to keep their primary residence in ALL states.   Bankruptcy laws are both Federal and State. The Federal laws are the most liberal and and the filer has the choice to abide by Federal or State exemptions. The Federal exemptions are:   $16,150 in equity which serves as a residence $2,575 on a motor vehicle $8,625 in household furnishings with no single item worth over $425. $1,075 in jewelry $850 plus up to 2 of the unused residence exemption in any property social security, support, unemployment benefits, welfare, VA disability and certain pension benefits.
#22 of 947 mfullmer by alfox Sep 17, 2004 (5:12 am)
I don't think there is a good argument. These are just reciprocity agreements. The reason of course is money - sales tax on cars is such a significant revenue stream to a state that they cannot allow people to go out of state to avoid the tax. Since all states think the same way, it was easy to agree to reciprocity.
#23 of 947 Re: mfullmer [alfox] by mfullmer Sep 17, 2004 (5:19 am)
But in that same arguement, why would that matter? If I live on the border of a state that has no sales tax I can go there for all of my purchase, which easily, yearly, add up to more than a vehicle costs (and we don't buy new vehicles every year) and not pay taxes.   I know WHY they did it but it's really a way for local (state) governments to engage in activities that are banned for normal businesses.   Why I think the sales jurisdiction should get it? The jurisdiction that "houses" the retail establishment takes on the expense of the common features of the community in which people shop. Sales tax, going to the jurisdiction where the expenses/income are accrued, only makes sense, regardless of the fact that each states wants as much money as they can get. Replies to this message: reinrev (Mar 25, 2005 7:14 am) reinrev (Mar 25, 2005 7:15 am)
#24 of 947 Well I agree, by alfox Sep 17, 2004 (5:26 am)
but the states revenue departments obviously don't, lol.   We live next to a state with no sales tax, and MA is passing all kinds of laws trying to prevent people from shopping in NH. They have made it illegal to buy goods from an out of state source that are available in-state without paying MA the sales tax they lost. They are "encouraging " Internet retailers to report sales to MA residents, so that they can collect the sales tax. If you do buy on-line from, say, Dell Computer and fail to pay the sales tax to MA, and they find out about it they are prosecuting people for tax evasion. Hasn't been tested much yet, but that's their bizzare plan.
#25 of 947 Re: Well I agree, [alfox] by robr2 Sep 17, 2004 (6:33 am)
alfox - actually the MA tax is considered a sales and use tax. So if you buy out of state and use it in state it is subject to tax. I wouldn't be suprised to discover that's how it is in most states.   Further, MA added last year to the state income tax return a place to list all purchases made outside the state that you owe the 5% on. If you put down zero when you made taxable purchases and then sign the return, you are technically guilty of tax fraud. Replies to this message: kyfdx (Sep 17, 2004 6:54 am)
#26 of 947 Re: Well I agree, [robr2] by kyfdx HOST Sep 17, 2004 (6:54 am)
Replying to: robr2 (Sep 17, 2004 6:33 am) robr2 has it pegged exactly.. Most states have a "use tax" in addition to the sales tax.. By law, you have to pay a "use tax" on anything you purchase out of state...   You can see how this would create chaos when it comes to sales taxes on cars.. Car dealers that border another state would never be able to sell a car to an out-of-state resident, if that resident then had to pay a use tax when he registered the car in his home state. Everyone would be driving to NH, OR, or FL to buy their cars otherwise..   I think the system they have now is the best.. Pay the tax on cars where you live... It may be different, but it makes good fiscal sense.   regards, kyfdx
#27 of 947 Wow - by alfox Sep 17, 2004 (8:03 am)
a fast growing thread, top-10 for sure, lol. Replies to this message: gsdavis (Sep 17, 2004 3:53 pm) nathar (Jul 25, 2005 5:01 pm) kyfdx (Jul 25, 2005 6:43 pm) ifyoubuildit (Jul 25, 2005 8:02 pm) cadillacmike (Jul 26, 2005 1:48 pm)
#28 of 947 Re: Wow - [alfox] by gsdavis Sep 17, 2004 (3:53 pm)
Replying to: alfox (Sep 17, 2004 8:03 am) Can someone help me in figuring out sales tax. Sales tax in NC is 3% I had a price for an Avalanche for $30000. When I went to the dealership, they changed the numbers to $30500 and then took the additional $500 off at the end. I had a trade valued at $6500. The dealership then applied the tax to the difference and then took the $4000 rebate after adding the tax to the difference. They then took the $500 dealer cash at the end. I seems to me that the tax should not have been applied until after the rebate. (30500-6500-4000). Am I wrong. I thought they were trying something so I got up and left.
#29 of 947 Re: gsdavis by Car_man HOST Sep 19, 2004 (6:48 am)
Hi gsdavis. In most states customer cash incentives are taxable, while dealer cash incentives are not because they are considered manufacturers' price adjustments. So for example, sales tax would be calculated on the vehicle that you are considering before the $4,000 customer cash was deducted, but after the $500 dealer cash was. You should be able to find out more informaiton your state's specific tax laws by visiting the following Web sites: North Carolina Department of Revenue and North Carolina Division of Motor Vehicles.   Car_man Host Smart Shopper Message Board
#30 of 947 Question about "use tax" and moving by secretariat73 Sep 23, 2004 (10:48 am)
I live in NH, a state without sales tax, but I am thinking about moving to another state (don't know which state yet). I am also thinking about getting a new car relatively soon, and would like to do it here because of the tax situation. However, when I moved several years ago from NY to Kentucky, I had to show proof of a sales tax payment on my car that was equal to or greater than it would have been in KY (no problem, since I moved from a place with 8.25% to 6%). But, if I were to do that this time, I'd get socked with a huge use tax. Anyway, does anyone know what states do or do not have the "use tax" penalty for the cars of incoming residents? I'd hate to have an extra $1000 to pay right after spending big bucks on relocation. Steven

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