[Tuck479]

Hi all, just recently moved to Arkansas and am experiencing the way Arkansas does its taxes on things like vehicle sales tax. I purchased a vehicle and have just found out that I will owe $1100 by the end of the month! Ouch and unexpected. How does one come up with that kind of cash on the spot for sales tax, wow. In any event, does anyone know if they accept payments or anything or do I have to go out and get a loan to pay this, its Christmas after all? In Oklahoma the sales tax is included in the purchase of the vehicle so you don't have to fork out a lump sum all at once. Thanks in advance!

[nmnita]

Originally Posted by Tuck479

Hi all, just recently moved to Arkansas and am experiencing the way Arkansas does its taxes on things like vehicle sales tax. I purchased a vehicle and have just found out that I will owe $1100 by the end of the month! Ouch and unexpected. How does one come up with that kind of cash on the spot for sales tax, wow. In any event, does anyone know if they accept payments or anything or do I have to go out and get a loan to pay this, its Christmas after all? In Oklahoma the sales tax is included in the purchase of the vehicle so you don't have to fork out a lump sum all at once. Thanks in advance!

did you buy it from a private party or a dealership? Normally if you buy from a dealership the taxes are rolled into your payment. We got a shocker as well when we bought a car here from a private party. Yes, we had to pay the taxes. I think we had just never paid any attention because we usually buy from a dealer. Our daughter had the same shock in Texas. She had never bought from a private party and she purchased a very expensive car.

To answer your question, I don't know about payments. You might have to take out a private loan. I know it is Christmas, but I don't think the state thinks about things like that.

Nita

[RogMar]

Originally Posted by Tuck479

Hi all, just recently moved to Arkansas and am experiencing the way Arkansas does its taxes on things like vehicle sales tax. I purchased a vehicle and have just found out that I will owe $1100 by the end of the month! Ouch and unexpected. How does one come up with that kind of cash on the spot for sales tax, wow. In any event, does anyone know if they accept payments or anything or do I have to go out and get a loan to pay this, its Christmas after all? In Oklahoma the sales tax is included in the purchase of the vehicle so you don't have to fork out a lump sum all at once. Thanks in advance!

The system is designed so that "those who can afford...will" kind of thing. In a lot of states, including the last one I worked in, vehicle registration is expensive, for *any* vehicle. So, if you go buy an old used car, you pay the same as does one who buys a new BMW 7 series.

Here, you pay the taxes on the vehicle, and then the actual registration is low.

One of the things that I learned many years ago here was gleaned from a number of friends who are cattle producers/farmers.

These folks are rabidly "thrifty" (cheap?), and a number of them have incomes that most of us would certainly envy. However, when I see them buy a pickup truck, it's usually at least 3 or 4 years old, and that thing is around *forever*.

The difference in taxes they pay on that vs a new truck is substantial, and when the truck gets "long in the tooth", they either get the engine rebuilt or buy a new engine and put it in.

That's one side of the formula, transportation/working vehicle without the high tax output, the other side is, "Well....if you can afford a new vehicle, you can afford the tax".

Now, believe me, I feel your pain, my wife's vehicle made the tax assesor grin real big when she saw it, but my 20 year old pickup got no attention, and it will remain in the shadows for a very long time, although over the years it's been kept in primo shape.

A new or higher end vehicle owner will wince, and say, "that's not fair", but a young couple starting out with an older used car, a single parent on a tight budget, or a senior citizen on Social Security appreciates it.

"We pays fer our pleasures".

[aerotive]

Another time honored Arkansas tradition is to lie about the price of a private-party used car in order to avoid sales taxes. I've had people want to claim that a $15,000 vehicle was $1,999.

[Tuck479]

Hi, thanks for all the reply's. Just to answer some of your questions the vehicle is used, not brand new and it was purchased a t a dealership not a private party. I wasn't told about having to pay the tax until after I bought the vehicle, I naively assumed that the sales tax was already built into my total loan amount as that's how they do it in Oklahoma so it was a shocker when I found out. I can afford the vehicle just not a lump sum amount due at once during Christmas, had I'd known I would have waited until after the holidays to purchase the vehicle. As they say, you live and you learn and I'm still learning everyday, lol

[bluenoter]

Dealerships in Arkansas do not throw taxes into the deal unless you negotiate that into the deal. This means buyers of new or used cars must go and pay the lump sum of taxes within 1 month of purchase.

I know dealerships in most states roll taxes into purchase at dealership.

Originally Posted by Tuck479

Hi, thanks for all the reply's. Just to answer some of your questions the vehicle is used, not brand new and it was purchased a t a dealership not a private party. I wasn't told about having to pay the tax until after I bought the vehicle, I naively assumed that the sales tax was already built into my total loan amount as that's how they do it in Oklahoma so it was a shocker when I found out. I can afford the vehicle just not a lump sum amount due at once during Christmas, had I'd known I would have waited until after the holidays to purchase the vehicle. As they say, you live and you learn and I'm still learning everyday, lol

[artstarvedinar]

Are you sure it's sales tax and not your personal property tax?

[nmnita]

Originally Posted by artstarvedinar

Are you sure it's sales tax and not your personal property tax?

no, the OP is right, it is sales tax. Actually personal property taxes really are not very high here.

Nita

[gobrien]

Is it too late to re-negotiate your deal? That would be a shocker!

[nmnita]

Originally Posted by gobrien

Is it too late to re-negotiate your deal? That would be a shocker!

re negotiate what deal? The car is purchased..

NIta