U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > U.S. Forums > Illinois
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 01-28-2009, 10:15 PM
 
5 posts, read 41,489 times
Reputation: 14

Advertisements

If you buy a used car private party for under $15,000 you pay by the year.

In my case it would be $65

But I'm buying this car from a dealer for under $15,000

The tax will be $1040

What kind of bull**** is this, there shouldn't be two rates.

Anyway i can buy a car privately from dealer?

Last edited by CrookCounty; 01-28-2009 at 10:32 PM..
Reply With Quote Quick reply to this message

 
Old 01-30-2009, 10:54 PM
 
Location: Chicago
38,690 posts, read 88,993,714 times
Reputation: 29445
Nope, 'fraid you can't. I don't understand the drastic difference between the treatment of dealer versus private-party sale either. But they view dealerships just like any other business required to collect applicable sales taxes. In the eyes of the law, buying a car from a licensed dealership is no different than buying a sweater from a licensed business: Sales tax on the full value is due.
Reply With Quote Quick reply to this message
 
Old 04-14-2009, 11:32 AM
 
19 posts, read 156,069 times
Reputation: 20
Default Private Party Tax Vs Dealer Tax

Trying to clarify this a bit more for myself.
I want to be legal but I also want to use the law to my best advantage.

I am buying a $60K car from out of state dealer. My understanding is that I would pay Chicago Sales Tax when I register the car.

However, tax on a sale from a spouse is just $15.

Why can't I purchase the car for $60,000, not register it, then sell the car to my wife for $60,000 and have her register and pay the $15.

It isn't illegal to avoid tax if you follow the law. Maybe ethically questionable but legally?

Thoughts?
Reply With Quote Quick reply to this message
 
Old 04-14-2009, 04:02 PM
 
Location: Portland OR
1,915 posts, read 2,764,930 times
Reputation: 2421
Interesting - Will the dealer sell you the car without registering it for you (And thus collecintg the tax)?
Reply With Quote Quick reply to this message
 
Old 04-14-2009, 06:52 PM
 
Location: Chicago
38,690 posts, read 88,993,714 times
Reputation: 29445
Quote:
Originally Posted by ccjarider View Post
Interesting - Will the dealer sell you the car without registering it for you (And thus collecintg the tax)?
An out-of-state dealer might.
Reply With Quote Quick reply to this message
 
Old 04-14-2009, 08:22 PM
 
19 posts, read 156,069 times
Reputation: 20
Almost all out of state dealers do not collect sales tax, particularly when the car is delivered by freight. It is way too much of a hassle for them to collect and report and file forms in all the states.

You just pay when you register.
Reply With Quote Quick reply to this message
 
Old 04-14-2009, 09:46 PM
 
28,430 posts, read 70,768,727 times
Reputation: 18364
eric3:

My information contradicts this. Many of the more active sellers on sites like ebay routinely get served with complainsts from the IL Attorney General for NOT collecting / remitting taxes properly. This is BIG money and easy to track, as the Federal money laundering laws mean that the banks are reporting these transactions to the IRS and other agencies already.

I know there are people that have residences in lower tax areas like IN and even they have been hassled by agencies from the Chicago Dept of Revenue on up to the AG and had to PROVE that they really do garage their expensive used sports car at their second home...
Reply With Quote Quick reply to this message
 
Old 04-15-2009, 08:54 AM
 
19 posts, read 156,069 times
Reputation: 20
The important distinction to make is whether you travel to the other state to pick up the car or whether you have it shipped.
This is a blurb from an actual dealer listing on Ebay Motors and is indicative of my experience.

[SIZE=4]Florida residents must include 6% sales tax. According to Florida law, if an out-of-state purchaser takes delivery of a vehicle in the state of Florida we are obligated as a licensed dealer to collect sales tax at a rate equal to the purchasers state sales tax. The purchaser will then be given a receipt proving tax paid to present to their tax collectors office for sales tax credit. This does not apply to vehicles shipped out of state, only ones picked up in Florida. [/SIZE]

By the way, getting served with a complaint means nothing really. Just means they sent a letter. AG's serve literally thousands of complaints a day. They like to fish and scare people into paying even when they aren't really obligated to.
Reply With Quote Quick reply to this message
 
Old 04-16-2009, 09:38 AM
 
59 posts, read 328,541 times
Reputation: 30
Heck, IL evens charges sales tax on the full purchase when you lease. Even though you are 'renting', you still pay tax on the full bill. Want to buy it out at the end, you pay tax again. With a balloon you only pay once.

The taxman cometh...
Reply With Quote Quick reply to this message
 
Old 11-24-2012, 11:56 AM
 
1 posts, read 17,044 times
Reputation: 11
Default Problem...

Quote:
Originally Posted by eric3 View Post
Trying to clarify this a bit more for myself.
I want to be legal but I also want to use the law to my best advantage.

I am buying a $60K car from out of state dealer. My understanding is that I would pay Chicago Sales Tax when I register the car.

However, tax on a sale from a spouse is just $15.

Why can't I purchase the car for $60,000, not register it, then sell the car to my wife for $60,000 and have her register and pay the $15.

It isn't illegal to avoid tax if you follow the law. Maybe ethically questionable but legally?

Thoughts?
The problem w/ this is after you buy from dealer, you don't own the vehicle until you title it. Not register - registration is plate to drive it - title is ownership. You generally cannot title a vehicle in a state you have no residence. Unless you have a summer home in some tax-haven state, when you title the vehicle you'll pay the tax. The tax guys left you only 1 out: buy different car straight from prior owner.
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:


Options
X
Data:
Loading data...
Based on 2000-2016 data
Loading data...

123
Hide US histogram

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > U.S. Forums > Illinois
View detailed profiles of:
Follow City-Data.com founder on our Forum or

All times are GMT -6. The time now is 07:17 PM.

2005-2019, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top