How can one state collect sales tax on a transaction from another state? - ZR-1 Net Registry Forums

mrmojo1111 · 07-17-2012

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 · 07-17-2012

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 · 07-17-2012

Quote:

Originally Posted by 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

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."

vilant · 07-17-2012

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 · 07-17-2012

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 · 07-18-2012

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 · 07-18-2012

Quote:

Originally Posted by 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.

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 · 07-18-2012

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 · 07-18-2012

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.

07-17-2012	#1
mrmojo1111 Join Date: Oct 2011 Location: Springfield, IL Posts: 117	How can one state collect sales tax on a transaction from another state? 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

07-17-2012	#2
VetteMed Join Date: Mar 2009 Location: Orlando, FL Posts: 1,816	Re: How can one state collect sales tax on a transaction from another state? 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]

07-17-2012	#4
vilant Join Date: Jun 2012 Location: PA Posts: 770	Re: How can one state collect sales tax on a transaction from another state? 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.

07-17-2012	#5
mrmojo1111 Join Date: Oct 2011 Location: Springfield, IL Posts: 117	Re: How can one state collect sales tax on a transaction from another state? 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!

07-18-2012	#6
USAFPILOT Join Date: Aug 2007 Location: Spring TX Posts: 1,341	Re: How can one state collect sales tax on a transaction from another state? 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.

07-18-2012	#9
mike100 Join Date: Feb 2011 Location: San Marcos CA Posts: 1,786	Re: How can one state collect sales tax on a transaction from another state? 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.