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As long as there is also not a personal property tax on top of the sales tax, the sales tax on the used car makes sense to me, being from New York. The atrocio
by cpwright 12y ago
As long as there is also not a personal property tax on top of the sales tax, the sales tax on the used car makes sense to me, being from New York. The atrocious part, is that the dealer is able to charge only a 4% rate instead of the 6+% rate.
The trade-in reducing the taxable value is also similar to New York, I'm not entirely sure how to make that fair for private party sales; but I find it a bit less concerning.
Potentially if you were to sell and buy a car within 90 days from each other, the sale price could be subtracted from the taxable value that you should pay.
- Jtsummers 12y agoI'm not sure about purchasing used cars, but after 2011 or 2012 all new purchases no longer have the ad valorem annual tax. It's just $20 or so a year to update your vehicle registration now. So the tax is shifted to an upfront tax that's lower (over the life of the vehicle) than the previous ad valorem tax revenue. While I like the savings, I'm not sure I understand where they intend to make up the revenue differences.
- rogov 12y agoIt is the same in Georgia, as well, for used cars purchased after the law changed. Rather than paying an annual ad valorem tax on the value of the used car, a value added tax is paid when the title is transferred and the car registered to the new owner. As a Georgia resident, I prefer the new law to the old, with the exception of the loopholes for new car dealers.