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Dealership and Private Party Tax Rates

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Old 12-29-2006, 02:30 PM
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Default Dealership and Private Party Tax Rates

What are these tax rates for used cars through dealerships and private parties? I've been told that although you have to pay tax twice (once to the dealership and once to the DMV) for cars purchased through dealerships, you have to pay a heftier sales tax to the DMV for cars purchased through private parties. Thanks guys!
Old 12-29-2006, 03:28 PM
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Where do you live? Taxes are different in every state.
Old 12-29-2006, 04:26 PM
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My apologies! I live in California.
Old 12-29-2006, 06:11 PM
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in FL you pay sales tax one time. I've never heard of paying taxes to the DMV for a dealer purchased car. The dealer is required to collect that in almost every state.
Old 12-29-2006, 06:45 PM
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I think what you may be talking about is the double dip:

If you buy your car in NY, but you live in NJ, the dealer in NY may ask you to pay for taxes. But they don't do the registration, you are in NJ, so you do it. Then when you go to the DMV, they'll ask you to pay the taxes.

It is something akin to this. It's the general idea, though, and I'm probably quite wrong on it.

Old 12-30-2006, 05:29 AM
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In NC, there are 2 taxes. One is the sales tax on the purchase of the car. A NC dealer purchased car has the taxes collected by the dealer. Otherwise, the buyer pays the tax upon registration, whether purchased from a private seller or an out-of-state dealer.

The second tax is a personal property tax that is collected by each county. Every year. I sold a car in October but I just got a bill to pay tax on it. A car I don't even own. The tax year on that car is from 10/1 - 9/30. I sold it on 10/20 so I have to send in a tax payment for that 20 day period when I still owned the car.
Old 01-02-2007, 05:43 AM
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Originally Posted by mstupp,Dec 30 2006, 02:29 PM
In NC, there are 2 taxes. One is the sales tax on the purchase of the car. A NC dealer purchased car has the taxes collected by the dealer. Otherwise, the buyer pays the tax upon registration, whether purchased from a private seller or an out-of-state dealer.

The second tax is a personal property tax that is collected by each county. Every year. I sold a car in October but I just got a bill to pay tax on it. A car I don't even own. The tax year on that car is from 10/1 - 9/30. I sold it on 10/20 so I have to send in a tax payment for that 20 day period when I still owned the car.
Interesting- very different in GA. If one buy a new or used car from a dealer then sales tax(6-8% varies by county) is paid. If one buys it privately there is NO sales tax. Ad Valorem(use tax) is paid on a purchased car if it is before ones birthday. If after your B-day you would have presumably paid on your previous car so the tag transfers with a minimal fee.
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