Paid Sales Tax on my new vehicle
12-16-05, 03:27 PM
#1
Lexus Champion
Thread Starter
Paid Sales Tax on my new vehicle
Buy the car out of state (Missouri), you have 30-days to register your car in home state (Kansas), transfer title, title, etc and pay sales taxes. TODAY was that day for me so I just wrote a check to the DMV. 
State Sales Tax...$2,040.87
County Sales Tax...$423.57
City Sales Tax...$433.20
Total Sales Tax...$2,897.64
County Collection Fee...$0.50
Total Taxes...$2,898.14
Property Tax...$563.22
Credit (previous car)....-$185.28
Registration/Service Fee...$3.00
Transfer Fee...$1.50
Title Fee...$10.00
GRAND TOTAL...$3,290.58
State Sales Tax...$2,040.87
County Sales Tax...$423.57
City Sales Tax...$433.20
Total Sales Tax...$2,897.64
County Collection Fee...$0.50
Total Taxes...$2,898.14
Property Tax...$563.22
Credit (previous car)....-$185.28
Registration/Service Fee...$3.00
Transfer Fee...$1.50
Title Fee...$10.00
GRAND TOTAL...$3,290.58
12-16-05, 03:53 PM
#3
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Location: KS
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kensteele:
You pay sales tax, in KS, on the purchase price of the automobile MINUS any trade in that you had. So, if you purchase a car for $40,000, with no trade in, you pay I think it's 6.5 % on 40k or $2,600. If you have a trade in for $25,000, then you pay 6.5 % on the 15k difference or $975. I'm sure that the automobile dealers in KS had something to do with this system. In MO, you actually have, as you said, 30 days in which to sell your own vehicle and you only have to pay the sales tax on the difference.
The only choice, if you sell your car yourself is to do what they call an "in-out" which means that you find a buyer for your car and take them with you when you purchase the new car. The dealer takes your car in trade and sells it one minute later to your buyer.
I've done this a number of times with several different dealers. When I found my Ferrari my seller took it to the same dealer where we bought our IS's. I traded my SC for the Ferrari that the dealer had purchased one minute earlier from my seller. It takes more organization but it's worth it over just eating the sales tax every time that you change cars.
but, then, you probably knew all of this .....
You pay sales tax, in KS, on the purchase price of the automobile MINUS any trade in that you had. So, if you purchase a car for $40,000, with no trade in, you pay I think it's 6.5 % on 40k or $2,600. If you have a trade in for $25,000, then you pay 6.5 % on the 15k difference or $975. I'm sure that the automobile dealers in KS had something to do with this system. In MO, you actually have, as you said, 30 days in which to sell your own vehicle and you only have to pay the sales tax on the difference.
The only choice, if you sell your car yourself is to do what they call an "in-out" which means that you find a buyer for your car and take them with you when you purchase the new car. The dealer takes your car in trade and sells it one minute later to your buyer.
I've done this a number of times with several different dealers. When I found my Ferrari my seller took it to the same dealer where we bought our IS's. I traded my SC for the Ferrari that the dealer had purchased one minute earlier from my seller. It takes more organization but it's worth it over just eating the sales tax every time that you change cars.
but, then, you probably knew all of this .....
12-16-05, 05:06 PM
#5
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Damn, I thought SC was bad, but I don't think they have anything on that. You pay a flat $300 sale tax on the car and $25 to transfer your previous license. They get you on the property tax each year for the car, but it's based on the licence. Since I just paid my property tax on my old IS before I traded it in, I'm good until next fall, but I'm guessing it'll be around $1500-$1700. The only good thing is that it's deductible....
12-16-05, 06:12 PM
#6
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There are ways to avoid paying sales tax.
My friend lives in California and bought a new car from Oregon that doesnt have sales tax. He registered the Oregon (family members there). He then shipped the car from OR to CA. He drove around with OR plates here in CA for 3-4 months.. After 3-4 months passes he registered the car here in CA and didnt have to pay sales tax.
The law here in CA is that you have to have the car registered for 60 or 90 days where you bought the car from (I forget) to avoid getting penalties for sales tax.
I might try it if its going to save me $3k.
My friend lives in California and bought a new car from Oregon that doesnt have sales tax. He registered the Oregon (family members there). He then shipped the car from OR to CA. He drove around with OR plates here in CA for 3-4 months.. After 3-4 months passes he registered the car here in CA and didnt have to pay sales tax.
The law here in CA is that you have to have the car registered for 60 or 90 days where you bought the car from (I forget) to avoid getting penalties for sales tax.
I might try it if its going to save me $3k.
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ouch
Just kidding. You can't even pump you own gas.
12-16-05, 09:23 PM
#12
I'd rather pay sales tax than state income tax (Washington State here). Every attempt to get a state income tax going here in Washington State has failed. Of course, sales tax is about a point higher than CA and property taxes are higher-than-average but in my case I don't buy large ticket items too often and do mail-order most of the time. Plus, sales tax is deductable off federal income taxes so there's a small savings there.
Cheers,
Kermee
Cheers,
Kermee
12-17-05, 01:52 AM
#14
Lexus Test Driver
Join Date: Sep 2001
Location: Washington
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I agree with a few points here. I only live about 20 minutes north of the Oregon border in Washington. If I want to buy "big ticket" items like home furniture or a plasma TV, I can take the 20 minute drive and save a bunch of $ on sales tax.
And it does suck that you can't pump your own gas. That is about the stupidest thing in the world if you ask me. Oh yea, as well as the 65 mph limit on highways. There are some LONG LONELY stretches of highway in NW Oregon. Just try to keep the Lexus at 65!!!!!!!!!!
And it does suck that you can't pump your own gas. That is about the stupidest thing in the world if you ask me. Oh yea, as well as the 65 mph limit on highways. There are some LONG LONELY stretches of highway in NW Oregon. Just try to keep the Lexus at 65!!!!!!!!!!
