How can one state collect sales tax on a transaction from another state?

[mrmojo1111]

Went to register my new car today at the IL DMV here in Springfield, expecting to pay for title and licence fees. SURPRISE! They calculated a sales tax amount and made me pay it before I could register my vehicle. Now, I purchased the car in another state in a private transaction. What right does the State of IL have to tax that transaction? Another chance for the beaureaucrats to redistribute some of my hard-earned money. There goes a sizable chunk of change that could have been spent in a local business. /rant

[VetteMed]

Clearly you're just too wealthy since you're able to buy a new car. The State knows best, don'tcha know? You don't have what you have because you worked for it, you have it because government made it easy for you.

[/sarcasm]

[XfireZ51]

Went to register my new car today at the IL DMV here in Springfield, expecting to pay for title and licence fees. SURPRISE! They calculated a sales tax amount and made me pay it before I could register my vehicle. Now, I purchased the car in another state in a private transaction. What right does the State of IL have to tax that transaction? Another chance for the beaureaucrats to redistribute some of my hard-earned money. There goes a sizable chunk of change that could have been spent in a local business. /rant

Nick

When I bought my 92 Aqua, I had a bill of sale for < $14,500 which meant I paid a minimum sales tax to register the car. However, a YEAR later, IL came back and said the value of the car was higher than the bill of sale stated and I ended up paying an additional $750. IL has since changed their sales tax to a method based on MY with a flat tax.
Lgaff bought his 92 at about the same time and he got whacked also.
To paraphrase Lily Tomlin, "We don't care, we don't have to, we're the State." :p

[vilant]

Whatever state you register the car in, is the state tax you pay for. For instance, I bought my car in NJ and I live in PA. I paid NJ tax (dealership put it in there), but received money back because NJ tax is higher than PA. If PA was higher I would of had to pay extra when I registered it. Now if you did it privately, I'm guessing, the seller should have calculated the state tax your registering the car in and charged that tax rate. But I'm not so sure about privately, still the rules should be the same.

[mrmojo1111]

Yeah, I understand that is what the law says, but it just does not seem right. I guess it serves me right for trying to apply logic and reason to the government, an inherently illogical and unreasonable institution!

[USAFPILOT]

We need to get on our state govt. about the BS of them determining value for goods purchased. Soon a cup of coffee we pay a dollar for is going to be valued as a 8.00 starbucks whatever the ****. I think we need a law that makes used cars exempt from taxes altogether anyway. Someone else already paid taxes for that car. If I sell a used computer to someone do I need to go register it with the state and pay taxes again? Soon we will if we don't stop this share the wealth liberal government crap.

[VetteMed]

We need to get on our state govt. about the BS of them determining value for goods purchased. Soon a cup of coffee we pay a dollar for is going to be valued as a 8.00 starbucks whatever the ****. I think we need a law that makes used cars exempt from taxes altogether anyway. Someone else already paid taxes for that car. If I sell a used computer to someone do I need to go register it with the state and pay taxes again? Soon we will if we don't stop this share the wealth liberal government crap.

Amen to that. Soon we're going to have the "VAT" (value added tax) on everything just like the Europeans have. No thank you!

[mrmojo1111]

Gee, let's see, do we have a revenue problem or a spending problem in this country? Answer seems obvious to us, sure, but just wait 'til November. Needless to say, I'm not overly optimistic about our chances! Of course, I live in IL, so perhaps my perception of public sentiment is skewed. The way I see it, the taxes I paid probably kept our state from going bankrupt for a couple seconds!

[mike100]

At least in Cali if you show proof of taxes paid in another state, you only have to pay the difference if the sales tax is higher here.

or... if you own it 12 months and a day out of state in your name, when you bring it back, it is considered a used car and you only pay the title transfer and rego fees.