Sales tax on cars suck!!

Page 2 - Seeking answers? Join the AnandTech community: where nearly half-a-million members share solutions and discuss the latest tech.

Vic

Elite Member
Jun 12, 2001
50,422
14,337
136
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.
 

marquee

Banned
Aug 25, 2003
574
0
0
Originally posted by: Balthazar
Originally posted by: CPA
Originally posted by: Cal166
Buy the car from a private party and report it dirty cheap to the DMV....screw the govt back.

I tried this once and got busted. Fortunately I was given 30 days to make good on my "error", which I promptly did.

I gladly admit I've done it before, bought the car from a relative for way less than I would have otherwise and paid them extra cash as a gift.
Technically I registered the car with the true purchase rice.
The rest was just a gift.

And before anyone gives you that "how can you sleep at night" routine....please, take a look at the people setting our taxes, the biggest bunch of lying thieving low-lifes to ever walk the planet.

I love the country but HATE who controls it....not so slowly but surely destroying it.

Eh but we let em....

My parents gave me one of their cars once, and we put down $1 as the selling price. I later got a letter asking what the deal was, why the sale price was so low. I just explained to them it was a gift from my parents. All they required was a letter from my parents verifying this was the case, and they let it go. This was in PA by the way.
 

FoBoT

No Lifer
Apr 30, 2001
63,084
15
81
fobot.com
Originally posted by: Cal166
Buy the car from a private party and report it dirty cheap to the DMV....screw the govt back.

promoting fraud/illegal activities, good move!

why not just tell him to rob a bank? screw the bank! get some free money!
 

Mill

Lifer
Oct 10, 1999
28,558
3
81
Originally posted by: Cal166
Buy the car from a private party and report it dirty cheap to the DMV....screw the govt back.

Asshats like you are the reason I had a hard time transferring my title. I bought a car when I was 16, but of course it couldn't be titled to me. I go to switch the title at 18, and of course they thought I was trying to scam them because the bill of sale was written for 1 dollar(from my mother). Thanks jerkwad. I had to spend two weeks to get the asshats to even look at my bank statements that proved I paid for it.