Vehicle Taxes?

[ImpetuousRacer]

Ok, so just wanted to see if I could clarify this....

I live in AZ. If I purchase a used car out of state via Private Party, I come back, register in AZ, and I do not pay the sales tax on the car. I only pay Vehicle License Tax (VLT) based off the DMV's equation (AZ DMV Equation)

So for example, a 2013 BMW M5 based off that equation would be roughly a $1500 tax charge. Where as a new 2013 BMW M5 from a dealer here in AZ locally, the taxes would be $8370 based of the 9.30% sales tax.

Is that correct?

Also, how do the taxes work if I purchased a used car from a dealer out of state?

Thanks for the clarification, been reading conflicting information on the internet.

[smashhell]

No you have to pay both.
The DMV where you register will require you to pay THEM sales taxes.

[johntomferg]

Originally Posted by smashhell

No you have to pay both.
The DMV where you register will require you to pay THEM sales taxes.

Be prepared to show the Bill of Sale with a price. The price on the BoS will be the basis for the sales tax. [If it was a used car, then you could 'Think hard' about whether that number should be high or low.]

[ImpetuousRacer]

So regardless of Private Party or dealer, Used or New, there will be Sales Tax and VLC to pay? Even though the previous owner already paid the state sales tax initially?

Originally Posted by johntomferg

Be prepared to show the Bill of Sale with a price. The price on the BoS will be the basis for the sales tax. [If it was a used car, then you could 'Think hard' about whether that number should be high or low.]

I've heard due to "fraud", DMV's have moved over to using their own book on proposed value of the vehicle to estimate the tax rather than BoS. Is this the case for all DMV? Just some?

[johntomferg]

Is this the case for all DMV? Just some?

That is not consistently applied state to state.
Some states use it as a red flag, others put restrictions similar to "no $1" BoS.

Being caught for Tax Fraud is bad: I don't recommend it. You will end up owning/losing more than you could ever have saved.

[stealth.pilot]

Guys the responses on this thread may not be valid. The laws on the tax on cars vary state to state.

In some states, like Georgia, there is no sales tax on used cars purchased from a private party. Only sales tax on used and new cars purchased from car dealers. So in Georgia what the OP says is correct. In Florida and Texas, there is sales tax on used cars purchased from private parties. So clearly different states have different tax policies.

I am not familiar with Arizona law.

[smashhell]

Just looked it up.
Arizona law states if the other party already paid tax for the car and the tax rate is higher than AZ than you will not have to pay tax.
If the other party comes from a state with no tax than you will have to pay Full tax on the car.
http://www.justanswer.com/tax/077b9-live-arizona-planning-purchase-used.html

[RumbleJay]

Originally Posted by smashhell

Just looked it up.
Arizona law states if the other party already paid tax for the car and the tax rate is higher than AZ than you will not have to pay tax.
If the other party comes from a state with no tax than you will have to pay Full tax on the car.
http://www.justanswer.com/tax/077b9-...hase-used.html

Now that's a law that makes sense. In Virginia you have to pay sales tax every time the vehicle exchange hands unless you are a dealer and tax exempt. I mean how many time can you milk sales tax out of one car. Its all a government scam.

[stealth.pilot]

Originally Posted by RumbleJay

Now that's a law that makes sense. In Virginia you have to pay sales tax every time the vehicle exchange hands unless you are a dealer and tax exempt. I mean how many time can you milk sales tax out of one car. Its all a government scam.

Yeah well that's what happens in a country where more than half the people now expect a free ride.

[dkreidel]

Originally Posted by RumbleJay

In Virginia you have to pay sales tax every time the vehicle exchange hands unless you are a dealer and tax exempt. I mean how many time can you milk sales tax out of one car. Its all a government scam.

The Great, "bankrupt" State of California is the same way