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| *Ostroff, Fair and Company>>>United States Taxes |
Is there a miminum amount on an auto sale before sales tax must be collected/payed? |
I am purchasing a car today and using a bill of sale from a friend. I do NOT want to pay sales tax any more than I have to. She/he is willing to sell the car at a reduced price provided that we find out what this minimum/maximum is. Can anyone tell me? This is covered by state law. Generally, no sales tax would exchange between yourself and the seller but the DMV would ask you how much you paid for it when you title the car. If the amount is "reasonable", they will take your word for it and charge you tax based on the local rate. You have to pay sales tax - no matter what the amount is when you register the car. Even if you get a friend to write a phony bill of sale for $100, the DMV will still charge you sales tax on the Blue Book value of the car.. Married to a car salesman. Contact the Revenue Office for your State. In my State anything $2,500 > is Taxable. Anything below $2,500 is not taxable. But, if the car bought out of State I not sure how they tax that, I know they do when you Transfer the Title from one State to mine. |
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