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Vehicle Sales Tax Questions

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

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What is this discussion about? Car Financing, Car Leasing


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#828 of 947
Re: Sales Tax on a Totaled Leased Vehicle [dlynch] by volvomax
Aug 22, 2008 (2:23 pm)
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Replying to: dlynch (Aug 21, 2008 2:11 pm)

FAIK, you will have to pay the tax on the buyout.
#829 of 947
AZ tax on out of state dealer purchase by ncosper
Aug 26, 2008 (10:18 am)
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I am wondering what the tax rate would be on the registration of the vehicle in Arizona when purchased from a dealer out of state.
More specifically do you pay or are you required to register the vehicle in the city or county you live in? Or do you automatically pay that tax rate. Meaning, say I live in Phoenix and my tax rate is approx 8%. This includes city, county and state sales tax. Can I register my vehicle in Tuba City that has the state sales tax and a small county sales tax with no city sales tax making it just over 6%, saving the difference? It seems to me that this is the case, but I can't seem to get an answer from anyone over the phone.
Thanks
#830 of 947
MA tax on vehicle purchased in NY by mio4321
Aug 27, 2008 (2:18 pm)
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I just recently moved to Boston, MA. Just before I moved here I purchased a car in NY, had it registered and insured in NY. Now I am converting all my stuff over from NY to MA and the RMV is telling me I have to pay MA sales tax on my car. I already paid the NY sales tax. But the RMV is telling me since I haven't owned the car for 6 months I have to pay sales tax again. Is there anything I can do to avoid this and can MA legally charge me sales tax again since the amount I paid in NY is greater than what I would be charged in MA?
#831 of 947
Re: AZ tax on out of state dealer purchase [ncosper] by volvomax
Aug 27, 2008 (4:46 pm)
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Replying to: ncosper (Aug 26, 2008 10:18 am)

Most states have a reciprical relationship w/ AZ for taxes.
Meaning that if you pay tax in that state, that amount is credited towards your AZ tax.
If you pay no tax out of state, you pay the full 8.1% tax in Phoenix(Actually, I think it just went up)
If you have a residence in Tuba City, you MAY be able to register a car there.
However, if you only have a residence in Phx, I don't believe you can.
#832 of 947
vehicle tax by kumars4
Sep 26, 2008 (5:12 pm)
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I purchased a house recently and to try to clinch the deal the seller threw in two jet skies. When my son went to transfer the titles the tax women asked him what he thought the vehicles were worth. He answered about $5000.00 each whereby she said he would need to pay full tax on $10000.00, He had to leave as he did not have enough money.
Why do I have to pay tax on a vehicle I did not pay anything for?
#833 of 947
Re: vehicle tax [kumars4] by tidester HOST
Sep 26, 2008 (9:48 pm)
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Replying to: kumars4 (Sep 26, 2008 5:12 pm)

Why do I have to pay tax on a vehicle I did not pay anything for?
 
Probably for the same reason some states require you to pay sales tax on the full retail price of an item that you buy at a half off sale.
 
tidester, host
SUVs and Smart Shopper
#834 of 947
Tax and Trade Allowance (IL) by slhouse1
Oct 17, 2008 (4:20 pm)
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I should pose my tax question in the tax forum. Bottom line is if you are currently in a lease, and trading the leased vehicle in early at another car company, do you receive tax "credit" towards the purchase or leasing of another vehicle? Example:
 
20K Trade in Allowance on 20K Payoff of Existing Lease
15K Purchase Price of new car
 
Does this transaction net to zero tax, or X% of the 15K purchase price?
 
Thanks for any insight.
#835 of 947
Re: Tax and Trade Allowance (IL) [slhouse1] by volvomax
Oct 18, 2008 (7:56 am)
Reply

Replying to: slhouse1 (Oct 17, 2008 4:20 pm)

You only recieve a tax credit IF you paid the full tax when you bought the car.
Most states have you pay tax as you go on the payment, so there is no tax credit to issue.
#836 of 947
Re: Tax and Trade Allowance (IL) [volvomax] by slhouse1
Oct 19, 2008 (5:43 am)
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Replying to: volvomax (Oct 18, 2008 7:56 am)

In Illinois we pay full tax when we LEASE the car. Same goes for Texas. So, in your opinion, there is no tax on my example above?
#837 of 947
Re: Tax and Trade Allowance (IL) [slhouse1] by slhouse1
Oct 20, 2008 (5:47 am)
Reply

Replying to: slhouse1 (Oct 19, 2008 5:43 am)

I'm still pretty unclear on this whole thing and I should clarify a few things.
 
1. I am currently in a LEASE in Illinois. (We pay full sales tax at lease inception)
2. Trade in would be going to a different manufacturer/dealer. ex. Trade in Toyota to Honda.
3. Trade-in "allowance" is greater than purchase price of new vehicle.
 
This appears to be pretty "black and white" but I can't seem to get an answer. I've also looked at IL ST 556 (page 40) and IL Title 86 Part 130.425/455, but am having a difficult time interpreting.
 
http://www.revenue.state.il.us/Publications/Sales/STS76.PDF
http://www.revenue.state.il.us/LegalInformation/regs/part130/130-425.pdf
http://www.revenue.state.il.us/LegalInformation/regs/part130/130-455.pdf
 
 

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