|
|
| *Ostroff, Fair and Company>>>Other Taxes |
Why don't people scream about multiple state sales taxation on Cars? |
I want to know why we all sit back and take double, triple, quadruple etc... taxation on our automobiles? Someone buys a new car for $40K and pay $2400 in state sales tax - two years later that person sells the car for $25-30K and the new owner pays another $1,800 or so in Sales tax - 1-1/2 years go by and the car gets sold again for $20K and the new owner pays another $1200 in Sales tax - and on and on until the total tax paid on one car comes in around $7-10K ( or 25% of it's original value)for the life of the car. Do people realize this?? 20-25% tax on a car not counting registration - What a scam!!! I think the person above you missed the point of your question/statement. Because vehicles need to be registered, the states enjoy collecting sales tax with each "purchase" of the vehicle. Most often, sales tax is collected on an item when someone is selling "for profit". This would not include the one time sale of an item like your sofa, or a garage sale (unless there is a state that does, watch out!). Luckily, though, as long as you are not the person continually repurchasing a particular vehicle, you don't really feel the effects of the scenario you portrayed. You are right, it doesn't make sense. Neither does double or triple taxation (of corporate dividends). You are obviously a novice in the world of finance. Sales tax is levied on the TRANSACTION, not the item. No sales tax is levied on the item if it is part of an inventory to be resold, such as the car coming from the factory to the dealer. If you sold that car to a used car dealer, you don't charge sales tax do you? |
| Tags |
| Other - Business & Finance Other Taxes United States Taxes United Kingdom Taxes Spain Taxes Singapore Taxes Mexico Taxes |
Finance Categories--Copyright/IP Policy--Contact Webmaster |