PrimoGen

Here is the real kicker in all this.
Everytime the car is sold it is going to be taxed again and again.

This is multiple taxation on a single item and is WRONG. The initial purchaser paid the ligit taxes on the item and thusly satisfied the tax requirements for whatever state you are in. The rest of the subsequent sales are taxing the item again and that is criminal in my opinion. Your state loves used cars and wants you to sell them as often as possible.

LiQUiD iCE

In some states, if you're trading in a car at the dealership you can subtract that car's value from the value of the new car you're buying and only have to pay tax on that value. So if you're buying a $30k car and trading in a car that the dealer is paying $10k for, you only gotta pay tax on $20k ... I guess the state figures they're going to get the tax back anyways when the car for $10k sells again.

2002S2K

I sort of see it like this, if I have a car that is having problems, it is easier to take it to a dealer and trade it and not have the guilty conscience that you know the person you just sold it to.

ksdaoski

No tax in OR!

hpark

yep in CA you have to pay taxes on all that

VTEC_Junkie

it really depends. most used cars are sold "as is", and they have a legal form that you sign so that you legally agree to it. in such a case, if your car falls apart the second you sign the papers and drive off, you're on your own. unless the car is "certified" or has warranty, there is no guarantee of any sort when you buy used cars from dealers.

VTEC_Junkie

well, since he's in CA, CA calculates tax on the purchase price of the vehicle regardless of tradein.

VTEC_Junkie

the tax is technically not on the car itself, but it's on the monetary transaction that has occurred. if you think this senario is bad, look at it this way: an individual makes a salary each year and pays income tax on it. with the remainder of his income after tax, the money he spends on stuff (aside from food and a few other stuff), will be charged sales tax. now the money that this store receives, some will go to the cost of business where sales tax are paid, and the remainder goes to the owner or employee where income tax is paid. now the ower and employee when they spend their money will have to pay sales tax, etc., etc., etc. as you can see, it's a vicious cycle. each dollar that is out there floating around will continue to get taxed each time a transaction is made. again, there are few exceptions, like food, etc., but all in all, the general rule is that when a monetary transaction is made, the money involved will be taxed.

VTEC_Junkie

it's not only that, but if there were no tax on used cars, then there would be less of an incentive for consumers to buy new, in which case the economy can be seriously affected. i personally think tax on used cars is a good idea just for the fact that it doesn't take away as much incentive from people buying new.

WayneTeK

Ok, time to update. My friend just bought a used Toyota Tacoma for $6,000 from a private party and he said he didnt' pay taxes.. he said he just paid for registration whcih was $15. what gives? i thought you paid the taxes, etc. at the DMV? or is it at the end of the yr when doing taxes?