Sales Tax in Washington used Car private party...
Oct 22, 2010, 09:17 AM
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Sales Tax in Washington used Car private party...
So i guess I'm an idiot and was reading something wrong. I was thinking there was no sales tax. Come to find out the use tax and everything is higher than sales tax itself. Tax is going to be close to 10%. So if i pick up the car and they value at $15000, could be another $1500 in taxes alone. Am i missing something here. I'm seriously thinking about waiting on buying a car now. 
Oct 22, 2010, 09:41 AM
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technically if your permanent address is texas you can purchase the car here with your texas address and you will pay taxes at the time of licensing in your home state.
If your buying the car from a dealership then they will produce the loan documents with your Texas sales tax rates. If buying third party you will write up the bill of sale and the taxes would be paid at the time of licensing... which you wont do until you return to Texas.
So i'm not seeing where your getting upset here?
you can always contact your local vehicle licensing center and ask them to verify.
https://fortress.wa.gov/dol/dolprod/vehoffices/
If your buying the car from a dealership then they will produce the loan documents with your Texas sales tax rates. If buying third party you will write up the bill of sale and the taxes would be paid at the time of licensing... which you wont do until you return to Texas.
So i'm not seeing where your getting upset here?
you can always contact your local vehicle licensing center and ask them to verify.
https://fortress.wa.gov/dol/dolprod/vehoffices/
Oct 22, 2010, 09:46 AM
#5
Private party sales are also subject to "book" pricing independent of the bill of sale or what you legitimately paid for a car. If the 15k car you just bought books at 25k you pay tax on 25k. WA is broke and they are looking for every last bit.
On an upnote however it appears we can lease dyno time as a tool and not have to charge sales tax to you our customers for this tool rental. Its 300 for renting the dyno and me now apparently
aaron
On an upnote however it appears we can lease dyno time as a tool and not have to charge sales tax to you our customers for this tool rental. Its 300 for renting the dyno and me now apparently
aaron
Oct 22, 2010, 09:49 AM
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technically if your permanent address is texas you can purchase the car here with your texas address and you will pay taxes at the time of licensing in your home state.
If your buying the car from a dealership then they will produce the loan documents with your Texas sales tax rates. If buying third party you will write up the bill of sale and the taxes would be paid at the time of licensing... which you wont do until you return to Texas.
So i'm not seeing where your getting upset here?
you can always contact your local vehicle licensing center and ask them to verify.
https://fortress.wa.gov/dol/dolprod/vehoffices/
If your buying the car from a dealership then they will produce the loan documents with your Texas sales tax rates. If buying third party you will write up the bill of sale and the taxes would be paid at the time of licensing... which you wont do until you return to Texas.
So i'm not seeing where your getting upset here?
you can always contact your local vehicle licensing center and ask them to verify.
https://fortress.wa.gov/dol/dolprod/vehoffices/
All that needs to be done within 2 weeks of purchasing the vehicle. I won't be back in the U.S until Feb/March. Was trying to purchase a car and have family store it for me so i have something ready for me when i get back. Planned a road trip from WA to AL. It's 147am here in Korea and family was suppose to be going to get/finalize car in 24 hours or so. Trying to get in touch with seller about price. Lowest i could get him is $17000 for an 03 VIII with 50,000. One owner clean carfax. KBB says $16,200 on value. People on forums say $15.5k to $16k. If washington values it at $16000, thats a good $17600 or so id be paying for a 03. To me thats a no go.
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Oct 22, 2010, 11:26 AM
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Private party sales are also subject to "book" pricing independent of the bill of sale or what you legitimately paid for a car. If the 15k car you just bought books at 25k you pay tax on 25k. WA is broke and they are looking for every last bit.
On an upnote however it appears we can lease dyno time as a tool and not have to charge sales tax to you our customers for this tool rental. Its 300 for renting the dyno and me now apparently
aaron
On an upnote however it appears we can lease dyno time as a tool and not have to charge sales tax to you our customers for this tool rental. Its 300 for renting the dyno and me now apparently
aaron
This is so true, Aaron. I bought my 05' a year and a half ago for $17K (21K miles on it). The state charged me tax for a $25K car. It was almost $1,900 in taxes!!
Oct 22, 2010, 12:37 PM
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however you pay the tax when you go to license the vehicle. if the car is purchased in state "X" but licensed and operated in state "Y", then by the law you will pay the sales tax rate of state "Y".
Sorry, i'm not going to dig through IRS.gov for an hour to find you the specific tax law.
YES you have 14 days to register the car.... so guess what, your leaving it in storage. when you get back then you drive it to TX and register the car there.
I bought a car in Indianapolis without ANY license plates, drove it acrost country and registered it in WA when i got back. Paid sales tax in WA, got new plates and bob's your uncle.
http://www.wisegeek.com/do-i-have-to...ying-a-car.htm
"Currently, in the US, there are five states that don’t have sales tax. These are Delaware, Alaska, Oregon, New Hampshire and Montana. However, before one thinks of heading to one of these states to purchase a car, one should know that taxes will be assessed in the state where the car is initially registered. Thus if a Californian purchases a car in Oregon, he or she will have to pay sales tax when registering the car in their home state.
The only way to avoid paying the tax is by registering the car in the state where one purchases it, if the state assesses no sales tax. This is actually fairly difficult. One must have an address in the state. So if one owned two homes, one in Oregon and one in California, it would be technically possible to purchase a car in Oregon and pay no sales tax in California.
However, people have, in the past, abused this law, and it has led to some crackdowns on vehicle licensing. It is illegal to register a car using a dummy address, for example, an address borrowed from a friend. Generally, if one has an out of state license on a new car, he or she can still be assessed a tax if he or she really lives in a state with sales tax. Further, one could be charged with tax evasion, or pay fines for not registering the car sooner, in one’s home state. "
Sorry, i'm not going to dig through IRS.gov for an hour to find you the specific tax law.
YES you have 14 days to register the car.... so guess what, your leaving it in storage. when you get back then you drive it to TX and register the car there.
I bought a car in Indianapolis without ANY license plates, drove it acrost country and registered it in WA when i got back. Paid sales tax in WA, got new plates and bob's your uncle.
http://www.wisegeek.com/do-i-have-to...ying-a-car.htm
"Currently, in the US, there are five states that don’t have sales tax. These are Delaware, Alaska, Oregon, New Hampshire and Montana. However, before one thinks of heading to one of these states to purchase a car, one should know that taxes will be assessed in the state where the car is initially registered. Thus if a Californian purchases a car in Oregon, he or she will have to pay sales tax when registering the car in their home state.
The only way to avoid paying the tax is by registering the car in the state where one purchases it, if the state assesses no sales tax. This is actually fairly difficult. One must have an address in the state. So if one owned two homes, one in Oregon and one in California, it would be technically possible to purchase a car in Oregon and pay no sales tax in California.
However, people have, in the past, abused this law, and it has led to some crackdowns on vehicle licensing. It is illegal to register a car using a dummy address, for example, an address borrowed from a friend. Generally, if one has an out of state license on a new car, he or she can still be assessed a tax if he or she really lives in a state with sales tax. Further, one could be charged with tax evasion, or pay fines for not registering the car sooner, in one’s home state. "
Oct 22, 2010, 12:43 PM
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FYI, Texas sales tax rates that you will pay, regardless of the state you purchase your vehicle in if you register it in Texas:
What is the motor vehicle tax rate?
The rate is 6 1/4 percent and is calculated on the purchase price of the vehicle. The taxable value of private-party purchases of used motor vehicles maybe based on the Standard Presumptive Value.
http://www.window.state.tx.us/taxinf.../faqmoveh.html
Seriously, tax law isnt rocket surgery.
What is the motor vehicle tax rate?
The rate is 6 1/4 percent and is calculated on the purchase price of the vehicle. The taxable value of private-party purchases of used motor vehicles maybe based on the Standard Presumptive Value.
http://www.window.state.tx.us/taxinf.../faqmoveh.html
Seriously, tax law isnt rocket surgery.
Oct 23, 2010, 11:20 AM
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it is usually around 8 or 9 percent of what you paid for your vehicle. you show them the bill of sale at the DOL. i don't think its a percentage of what the car is worth.