Sales Tax on Private Sales

C.Bui · 04-05-2011, 08:57 PM

How is sales tax calculated on private party transactions? Some people have told me that there is no sales tax and I've also been told there is sales tax. Any insight is appreciated.

birdmanx1 · 04-05-2011, 09:05 PM

Never heard of such thing during private sale!! You are supposed to pay for ONLY the amount agreed upon, the seller in the private transaction would transfer the title over to you (Assuming title is clean) and place the amount the car was sold for in the title. The motor vehicle association (or whatever it's called where you are) will use the value listed on the title for sale taxes during registration.

C.Bui · 04-05-2011, 09:08 PM

But would I ultimately have to pay sales tax to uncle sam on it? Or just registration?

birdmanx1 · 04-05-2011, 09:12 PM

You'll ultimately have to pay sales tax at the time of the car registration. The tax is a percentage of the car price, in MD, it is 6%, not sure what it is for your state - check with your MVA or DMV.

Mike · 04-05-2011, 09:15 PM

depends on your state. In california, you pay sales tax when you register based upon the price on your sales agreement.

In Georgia, as of now, we don't pay any sales tax on private party sales, but they are looking at changing that.

I don't know about MO or KS, whichever you are in. Just google your state and private party auto sales tax

cptspeed · 04-05-2011, 09:18 PM

I bitch about this tax more than any other. If a car is sold 10 times, the state gets tax on every transaction? How do we put up with this?

SoCal 370Z · 04-05-2011, 09:22 PM

Quote:

Originally Posted by cptspeed

I bitch about this tax more than any other. If a car is sold 10 times, the state gets tax on every transaction? How do we put up with this?

I agree, it really is double taxation, or more.

Lemers · 04-05-2011, 09:25 PM

Different states different laws. Heres how it work in Texas. When the buyer goes to register the car bought during a private sale, Texas will charge 6.5% on "fare market value" of the car. This prevents the $1 sale BS.

TreeSemdyZee · 04-05-2011, 10:01 PM

I haven't done any private sales for quite awhile here in Indiana, but I think it used to be based on book value of the car. That kept people from doing the bogus sales price.
I don't know if it is still like that or not.

Duplicity807 · 04-08-2011, 05:13 PM

Quote:

Originally Posted by TreeSemdyZee

I haven't done any private sales for quite awhile here in Indiana, but I think it used to be based on book value of the car. That kept people from doing the bogus sales price.
I don't know if it is still like that or not.

Well the seller could just make a deal w/ the buyer and to let's say that his/her car has "issues" or saying it's in "poor condition" so make it a lesser amount. The buyer can just give the seller the remaining of the original deal.

But honestly, I don't agree with this multiple taxation deal. Car was taxed once already when 1st bought.

FuszNissan · 04-08-2011, 08:36 PM

Missouri you pay sales tax at time of registration, I believe the same as KC

Lemers · 04-08-2011, 09:21 PM

Think about how many times you are taxed on the car

1. Sales tax at purchase
2. Title
3. license
4. Registration
5. Inspection
6. Toll roads
7. Drivers license
8. Income tax at sale if you sale price is higher than purchase price

I added 6 and 7 in because Ive always felt that the other taxes and fees (another word for tax) could cover these items.

Mike · 04-08-2011, 10:04 PM

Quote:

Originally Posted by cptspeed

I bitch about this tax more than any other. If a car is sold 10 times, the state gets tax on every transaction? How do we put up with this?

we don't in Georgia, but unlike you floridians, we pay ad velorum and it costs me about 350 per year to register the Z, and I just found out I have to pay the tax whether or not I keep the car street registerd.

We are still good, in Cali, they have to pay both.

04-05-2011, 08:57 PM	#1 (permalink)
C.Bui Base Member Join Date: Jan 2011 Location: Kansas City Posts: 13 Drives: Slow Rep Power: 14	Sales Tax on Private Sales How is sales tax calculated on private party transactions? Some people have told me that there is no sales tax and I've also been told there is sales tax. Any insight is appreciated.

04-05-2011, 09:05 PM	#2 (permalink)
birdmanx1 A True Z Fanatic Join Date: Jun 2010 Location: Baltimore, MD Age: 95 Posts: 3,175 Drives: 370z Nismo Rep Power: 23	Never heard of such thing during private sale!! You are supposed to pay for ONLY the amount agreed upon, the seller in the private transaction would transfer the title over to you (Assuming title is clean) and place the amount the car was sold for in the title. The motor vehicle association (or whatever it's called where you are) will use the value listed on the title for sale taxes during registration. __________________ 370Z NISMO #0462 \| ClearBra \| 3M tint \| Head/Taillights \| Dynamat \| Black Roof \| Tommy Kaira HB \| CF Parts \| Berk HFCs \| FI SS \| NST Pulleys \| Takeda aFe \| K&N \| H&R Spacers \| Swift Spec R \| SPC F&R \| Zuperman M370 Nismo Vid \| Nismo Journal \| Nismo Rumble

04-05-2011, 09:12 PM	#4 (permalink)
birdmanx1 A True Z Fanatic Join Date: Jun 2010 Location: Baltimore, MD Age: 95 Posts: 3,175 Drives: 370z Nismo Rep Power: 23	You'll ultimately have to pay sales tax at the time of the car registration. The tax is a percentage of the car price, in MD, it is 6%, not sure what it is for your state - check with your MVA or DMV. __________________ 370Z NISMO #0462 \| ClearBra \| 3M tint \| Head/Taillights \| Dynamat \| Black Roof \| Tommy Kaira HB \| CF Parts \| Berk HFCs \| FI SS \| NST Pulleys \| Takeda aFe \| K&N \| H&R Spacers \| Swift Spec R \| SPC F&R \| Zuperman M370 Nismo Vid \| Nismo Journal \| Nismo Rumble

04-05-2011, 09:15 PM	#5 (permalink)
Mike The370Z.com Sponsor Join Date: Jun 2009 Location: Loganville, GA Posts: 5,944 Drives: 370z Rep Power: 2185	depends on your state. In california, you pay sales tax when you register based upon the price on your sales agreement. In Georgia, as of now, we don't pay any sales tax on private party sales, but they are looking at changing that. I don't know about MO or KS, whichever you are in. Just google your state and private party auto sales tax __________________ NISSAN: 75 280Z / 86 300ZX GLL /87 Sentra SE / 03 350Z / 23 Z Porsche: 93 968 / 23 Macan GTS / 93 968

04-05-2011, 09:18 PM	#6 (permalink)
cptspeed Track Member Join Date: Jul 2009 Location: tampa Posts: 799 Drives: 09 370z Rep Power: 16	I bitch about this tax more than any other. If a car is sold 10 times, the state gets tax on every transaction? How do we put up with this? __________________ FI CBE, 20" forged specialties rims, swift springs, boston subs, kicker amp, focal components

04-05-2011, 09:08 PM	#3 (permalink)
C.Bui Base Member Join Date: Jan 2011 Location: Kansas City Posts: 13 Drives: Slow Rep Power: 14	But would I ultimately have to pay sales tax to uncle sam on it? Or just registration?

04-05-2011, 09:25 PM	#8 (permalink)
Lemers A True Z Fanatic Join Date: Mar 2010 Location: Izmir, Turkey Posts: 15,371 Drives: 2012 Traverse LTZ Rep Power: 52	Different states different laws. Heres how it work in Texas. When the buyer goes to register the car bought during a private sale, Texas will charge 6.5% on "fare market value" of the car. This prevents the $1 sale BS. __________________ 2010 Black Cherry Touring/Sport/Nav Now - 2012 Travese LTZ until I leave for Turkey

04-05-2011, 10:01 PM	#9 (permalink)
TreeSemdyZee Premium Member Join Date: Dec 2009 Location: Kentuck-IANA Age: 59 Posts: 4,880 Drives: '09 370 & ‘14 Juke Rep Power: 27408	I haven't done any private sales for quite awhile here in Indiana, but I think it used to be based on book value of the car. That kept people from doing the bogus sales price. I don't know if it is still like that or not.

04-08-2011, 08:36 PM	#11 (permalink)
FuszNissan A True Z Fanatic Join Date: May 2009 Location: St. Louis Posts: 14,275 Drives: Pure Sex Rep Power: 541	Missouri you pay sales tax at time of registration, I believe the same as KC __________________ Mods: Too Many to list! LouFuszNissan ZDAYZ 2012

04-08-2011, 09:21 PM	#12 (permalink)
Lemers A True Z Fanatic Join Date: Mar 2010 Location: Izmir, Turkey Posts: 15,371 Drives: 2012 Traverse LTZ Rep Power: 52	Think about how many times you are taxed on the car 1. Sales tax at purchase 2. Title 3. license 4. Registration 5. Inspection 6. Toll roads 7. Drivers license 8. Income tax at sale if you sale price is higher than purchase price I added 6 and 7 in because Ive always felt that the other taxes and fees (another word for tax) could cover these items. __________________ 2010 Black Cherry Touring/Sport/Nav Now - 2012 Travese LTZ until I leave for Turkey

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