Vic
Elite Member
- Jun 12, 2001
- 50,422
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It is not a sales tax. It is a vehicle excise tax. As such, it has certain benefits that sales tax on regular goods and services do not.
For example, you do not pay the tax to the state where you bought the car, but to the state where you live and will title/register the car. So if I bought a car in WA state, which has 7.6% to 8.9% tax depending on county, but register it in Oregon where I live, I do not have to pay any tax to WA state. If the situation was reversed though, and I lived in WA but bought in OR, then I would pay the tax to WA.
The other benefit is that the vehicle excise tax is tax deductible (consult your tax preparer), while sales tax on regular goods is not.
Most states that have the excise tax do not go off the sales price of the vehicle, but use their own valuation system.
For example, you do not pay the tax to the state where you bought the car, but to the state where you live and will title/register the car. So if I bought a car in WA state, which has 7.6% to 8.9% tax depending on county, but register it in Oregon where I live, I do not have to pay any tax to WA state. If the situation was reversed though, and I lived in WA but bought in OR, then I would pay the tax to WA.
The other benefit is that the vehicle excise tax is tax deductible (consult your tax preparer), while sales tax on regular goods is not.
Most states that have the excise tax do not go off the sales price of the vehicle, but use their own valuation system.
