State Sales Tax on a vehicle

Cuz5150 · 08-06-2016, 08:42 PM

Can someone help me out with sales tax on a new vehicle, when are they applied.
Example:
MSRP $40,000
Discount $4,000
Price of unit $36,000
Now apply the tax or?

Down payment $3000
Price of unit $33,000
Now add the State sales tax?

Thanks

RickFLM4 · 08-06-2016, 08:57 PM

Should be the $36K. Some states will net the value of your trade in so $36K minus trade in, depending on state. It would surprise me if any state deducts cash down payments before calculating sales tax.

08njSTEP · 08-06-2016, 09:00 PM

Purchase price=tax. What you paid for it is what you pay taxes on.

SakhirM4 · 08-06-2016, 09:22 PM

Quote:

Originally Posted by 08njSTEP

Purchase price=tax. What you paid for it is what you pay taxes on.

Not in Texas - they deduct any trade-in value before taxes.

MKSixer · 08-06-2016, 09:26 PM

Quote:

Originally Posted by SakhirM4

Not in Texas - they deduct any trade-in value before taxes.

Same in Louisiana.

08njSTEP · 08-06-2016, 09:50 PM

Right after trade in is purchase price. What you paid for it. Out the door price.

08njSTEP · 08-06-2016, 10:16 PM

As a bit of odd info. In NH we don't pay sales tax on cars but the registration fee is based on msrp and is paid every year. So when I registered my 1966 they asked me what was the msrp in 1966. Lived a lot of places and this was a first. And registration is paid to the town and not through DMV.

kscarrol · 08-07-2016, 02:18 AM

Correct on tax in TX and LA after trade in but OP did not indicate there was a trade in, only a "discount". Assuming that was what was negotiated the tax will be applied to the $36,000 sale price.

Cuz5150 · 08-07-2016, 01:50 PM

Thanks for everyone pitching in.
The purchase does not have a trade.
The $36K, im thinking is when they calculate the sales state tax.

08-06-2016, 08:42 PM	#1
Cuz5150 Major 224 Rep 1,489 Posts Drives: 06-M3ZHP/04-M3 Vert/02Duc998 Join Date: May 2008 Location: NJ iTrader: (0)	State Sales Tax on a vehicle Can someone help me out with sales tax on a new vehicle, when are they applied. Example: MSRP $40,000 Discount $4,000 Price of unit $36,000 Now apply the tax or? Down payment $3000 Price of unit $33,000 Now add the State sales tax? Thanks __________________ -Diplomacy is saying, "nice doggie while trying to find a rock"- 07-Z4 coupe-Black/Black/6MT/sport/premium/X 04-M3 vert-Black/Imolla/6MT/Cold/Xenon/HK/ 06-M3 Coupe-Mystic/Black/6MT/ZCP/Xenon/HK/ 09-135i- AW/Bk-Lette/6MT/M-pac/Nav/Hi-Fi/Usb-Ipod/SOLD
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08-06-2016, 08:57 PM	#2
RickFLM4 Brigadier General 11915 Rep 4,874 Posts Drives: M4 Join Date: Jul 2015 Location: PB County, FL iTrader: (0)	Should be the $36K. Some states will net the value of your trade in so $36K minus trade in, depending on state. It would surprise me if any state deducts cash down payments before calculating sales tax. __________________ Current: 2018 SO/SS F83 ZCP Gone: 2015 SO/SO F82
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08-06-2016, 09:00 PM	#3
08njSTEP Captain 795 Rep 762 Posts Drives: '07 335i, '66 SS396 Chevelle Join Date: Dec 2015 Location: Manchester, NH iTrader: (0)	Purchase price=tax. What you paid for it is what you pay taxes on.
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08-06-2016, 09:50 PM	#6
08njSTEP Captain 795 Rep 762 Posts Drives: '07 335i, '66 SS396 Chevelle Join Date: Dec 2015 Location: Manchester, NH iTrader: (0)	Right after trade in is purchase price. What you paid for it. Out the door price.
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08-06-2016, 10:16 PM	#7
08njSTEP Captain 795 Rep 762 Posts Drives: '07 335i, '66 SS396 Chevelle Join Date: Dec 2015 Location: Manchester, NH iTrader: (0)	As a bit of odd info. In NH we don't pay sales tax on cars but the registration fee is based on msrp and is paid every year. So when I registered my 1966 they asked me what was the msrp in 1966. Lived a lot of places and this was a first. And registration is paid to the town and not through DMV.
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08-07-2016, 02:18 AM	#8
kscarrol Brigadier General 9769 Rep 4,136 Posts Drives: 2021 X3 M40i, 1974 2002 Tii Join Date: Jun 2010 Location: Greenville, SC iTrader: (0)	Correct on tax in TX and LA after trade in but OP did not indicate there was a trade in, only a "discount". Assuming that was what was negotiated the tax will be applied to the $36,000 sale price. __________________ 2021 X3 M40i 1974 2002tii, Inka, 5 sp manual BMWCCA # 327475
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08-07-2016, 01:50 PM	#9
Cuz5150 Major 224 Rep 1,489 Posts Drives: 06-M3ZHP/04-M3 Vert/02Duc998 Join Date: May 2008 Location: NJ iTrader: (0)	Thanks for everyone pitching in. The purchase does not have a trade. The $36K, im thinking is when they calculate the sales state tax. __________________ -Diplomacy is saying, "nice doggie while trying to find a rock"- 07-Z4 coupe-Black/Black/6MT/sport/premium/X 04-M3 vert-Black/Imolla/6MT/Cold/Xenon/HK/ 06-M3 Coupe-Mystic/Black/6MT/ZCP/Xenon/HK/ 09-135i- AW/Bk-Lette/6MT/M-pac/Nav/Hi-Fi/Usb-Ipod/SOLD
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