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Old 10-23-2012, 11:55 AM   #1
XDCX
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Default States that don't charge Sales Tax on Private Party Vehicle Sales

For those who have followed the saga associated with my family's fleet of vehicles (For details on the saga - click here) you know my Dad's been looking for a replacement vehicle for his trusty Chrysler 300m.

My Dad was almost ready to pull the trigger on a used 2012 Chrysler 300 Limited but he was frustrated that it was difficult to find a Limited that was equipped with Navigation on the 8.4" center display. The other deal breaker was Sales Tax. In Arizona, Private Party sales are not subject to Sales Tax.

Now clearly, I'm a pro-dealer guy but I have to admit it's hard to recommend someone buy a used car from a dealer and pay Sales Tax if they can find an equivalent vehicle from a Private Party and save the Sales Tax. In Arizona the Sales Tax rate for used cars varies by locality but ranges between 8 and 10 percent. In my eyes, Sales Tax is 100% pure depreciation.

Do Private Party sellers have any tax advantages in your state?
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Old 10-23-2012, 01:39 PM   #2
rd3311
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Here in FL the DMV collects tax on private sales based on sale price or difference if there are any trades involved. Of course the DMV wants copies of any receipts or sale agreements to verify the amount to tax.

I remember Oregon had no sales tax on any kind of purchase unless that has been changed.

Puerto Rico used to be the same as Oregon until 2006 when they started charging a 7% sales tax on all non food items. In addition P.R. charges an import tax (impuestos arbitrarios de importados) on all new cars (all of which are imported) and used cars purchased off the island and imported for sale or use there. All new cars had an additional window sticker (local government form) next to the MSRP that discolsed the additional amount of tax to be charged.
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Old 10-23-2012, 02:22 PM   #3
Lakeshow
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No sales tax in MT either, which is great when you are selling vehicles. Not so great if you own property or make an income, they more than make up for it there.

X- I am in the middle of selling a Suburban to a friend of mine in Gilbert, AZ. I about fell over when he told me sales tax on his purchase would be 8.8%. But it looks as though we've found a way around that.
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Old 10-23-2012, 02:46 PM   #4
steve_biegler
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In South Dakota tax is 3% of price paid or trade difference with an exception for 15 years old and less than 1500.00 then no tax. Tax is collected by the county treasurer when the title is applied for so we don't have to deal with the money....for now.
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Old 10-23-2012, 03:23 PM   #5
XDCX
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Quote:
Originally Posted by Lakeshow View Post
X- I am in the middle of selling a Suburban to a friend of mine in Gilbert, AZ. I about fell over when he told me sales tax on his purchase would be 8.8%. But it looks as though we've found a way around that.
Yep, as long as it's a Private Party sale your friend won't have any problem with Sales Tax in Arizona.

In fact, I suspect there are some brokers in Arizona that never assign the title to their dealership so they can convey it to the next buyer and promote the Sales Tax savings. I ran into this when my Dad was shopping for a used 2012 Chrysler 300. He responded to an ad in the "Owner" section of Craigslist but when he went to look at the vehicle it had Dealer Plates. When my Dad commented that he didn't like the 300 in question because it lacked Navigation he was told it wouldn't be a problem to find another vehicle.
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Old 10-29-2012, 07:52 PM   #6
ohiobuckeyes
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Quote:
Originally Posted by Lakeshow View Post
No sales tax in MT either, which is great when you are selling vehicles. Not so great if you own property or make an income, they more than make up for it there.
Just did an deal with an MT resident did not collect any Sales Tax.. I even call the Lewis and Clark County Tax Collector to make sure. The customer has to pay some 1/2% county tax or something like that but I was floored. Just another DE.

I get alot of Ohio Out of State Vehicles Inspections (Paper VIN Check to make sure VIN matches Title) and I notice that when I do the inspection and the customer hands over the non Ohio paper work that most dealers outside of the Tri-State area do not collect the correct sales tax. I use to inform that customer but now it's a waste of my time since people don't even want to deal in state.
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