s2ksteve

Hi I have a question and I'm hoping a local member can lend me some knowledge. I live in PA, but, purchased an s2000 in VA. I had a Lexus IS300 that I used as a trade in. The question I have is should I have received a tax credit for the trade in towards the s2000. I know in PA if you purchase a car for say 30,000 and have a trade in valued at 20,000, you are only responsibe to pay 10,000 in taxes. Does this hold true for other states such as VA. My only other experience with purchasing a vehicle out of state was in NJ, and in that case I did receive the tax credit. Thanks in advance for any help.

gotmilkguy

First off did they collect taxes from you at the point of sale?
Probably not, because they don't have a PA tax number. Chances are they gave you a receipt and you need to go to your tag agency to do the transfer. That receipt should show you traded in your Lexus towards the S. You should only owe the difference between the 2 cars because you have previously paid for the taxes on the lexus.

s2ksteve

Thanks for the reply. They did collect the taxes from me at the time of purchase. On my "retail installment contract" it lists the amount I paid in taxes. During the transaction I spoke to the salesman about only paying the difference in taxes because of the trade in, but he looked at me like I was trying to pull something and said "that must be a PA thing." As a side note, on saturday I received my temp registration from the dealership in VA. Also in the envelope was a check from the dealership for the difference in taxes that I had paid. I'm very happy that they sent me a check, I plan to use it on an exhaust It is just a little scarry to think that I believed the salesman at the time and would not have pressed the issue further. They could have easily kept the money.