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figuring out sales tax

Discussion in 'The Okie Corral' started by happy seal, Mar 15, 2010.

  1. happy seal

    happy seal

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    I am buying a vehicle from out of state ( CT ) and will have to pay sales tax to the state in order to register it.
    Does anyone know how that is figured out? I assume it will be assessed because the old $1.00 dollar trick doesn't work anymore. I am trying to get an idea of how much I will need to reg vehicle.
    Thanks in advance.
     
  2. Easterbrook

    Easterbrook Wagon Burner

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    It's the sales price, generally, unless that price is grossly under the "fair market value" of the car such that it's seen as not a true sale. If so, then you should compute the sales tax based on the fair market value.
     
    Last edited: Mar 15, 2010

  3. happy seal

    happy seal

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    I guess you would google fair market value or use Kelly blue book and multiply by Ct sales tax rate??????????? :embarassed:
     
  4. 1faSStchevy

    1faSStchevy

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    I always tell them the car has a blown motor and was given to the shop or bought for $100. My local DMV could care less though.
     
  5. Dalton Wayne

    Dalton Wayne Epic mustache Millennium Member

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    If sales tax is lets say 7% take the price x .07 for example 30,000 X.07 =$2100 in sales tax
    Regards
    DW

    If I am wrong please excuse this post as I am posting under the influence of ambien and don't know what the hell I'm talking about.
    DW
     
    Last edited: Mar 15, 2010
  6. harlenm

    harlenm Millennium Member

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    Usually, they'll do either the current market value or the price paid, whichever is higher.
     
  7. Wolfgang

    Wolfgang Millennium Member

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    if you buy a $12,000 (KBB) car for $7,000 which amount is taxable?

    Do you pay tax on money you didn't pay?

    So you got a really good deal, should you have to pay tax on the extra?

    If your brother gave you a car, how would it be taxed?
     
  8. txjustin

    txjustin

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    You pay sales tax in the state that you register it. Also, not sure about other states, but here in Texas they use a program that automatically uses a value of the car you purchase...or what you paid, whichever is higher.
     
  9. harlenm

    harlenm Millennium Member

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    If it's between family members, you don't pay tax. And yes, when you buy a car out of state or from a private seller, they charge you tax on the selling price or the FMV, whichever is higher.
     
  10. Glock-it-to-me

    Glock-it-to-me Catching liars

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    Go ask Alice, I think she'll know
    Tell them it's a basket case and you're slowly restoring it.
     
  11. Halojumper

    Halojumper

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    If you paid $7000 for a $12,000 car that might just be a killer deal. If you paid a dollar, you're probably trying to scam them and they will use FMV to calculate it. It helps if you have a reason why it is cheap and supporting documentation.
     
  12. 220-9er

    220-9er

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    Most states use a dealers bill of sale or the book value because people have been known to lie.
     
  13. beatcop

    beatcop

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  14. harlenm

    harlenm Millennium Member

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    Here is the text from the above.

     
  15. happy seal

    happy seal

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    Yup, That's what I thought but couldn't find it in the searches. Thank you all.
    I guess I'm gonna have to pay FMV x 6%. :steamed:
     
  16. USMCsilver

    USMCsilver Boat Life ©

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    Here, it's 5% w/ a $300 cap.
     
  17. happy seal

    happy seal

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    You gettin things worked out down there?
    New house
    timing belt? :wavey:
     
  18. USMCsilver

    USMCsilver Boat Life ©

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    No timing belt yet -- still not due...1,500 miles left to go.

    Our house has been on the market 1 week, during this week, we got a www.pod.com and packed up 95% of the house. We've negotiated a contract w/ contengency for $11k off the house we want.

    We're listed at $123k on our house. Seems fair enough: http://www.trulia.com/property/3004379573-915-Hermitage-Pond-Rd-Camden-SC-29020
     
  19. happy seal

    happy seal

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    looks nice, shouldn't be a problem at all.
     
  20. Dan_ntx

    Dan_ntx

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    That is actually not a bad deal.... NADA average trade in value is generally less than "fair market value"... I'm a car dealer and usually buy cars for around NADA average trade.

    NADA is a much better resource for tax value than KBB, you may want to compare what you actually paid to the NADA #.