Sales tax on private sale cars? (buying, price, bill)

[Tootsfromscotland]

Sorry this may sound like a dumb question! If we buy a car from a garage, then 6% sales tax is presumably charged on top of the marked price on the car. How does sales tax apply if buying a car privately?

[craigm1841]

Yes- you will pay sales tax when registering it. Some people Get a bill of sale saying they paid $800 for the car instead of like $5000. I'm not telling you how to evade paying tax, I'm just saying that I've heard people do that. Some people get a bill of sale saying the car was a gift, but end up paying tax on book value of the car.

Just sayin'

[housingcrashsurvivor]

(just don't get caught flashing your high beams to warn of a speed trap)

[FloridaKash]

Yeah, it sucks.... you have to pay sales tax when buying a car from a private owner. I had to do this. Makes no sense to me and I thinks its unfair. The original owner already paid tax when they bought the car..... now you're paying tax. Makes you wonder how many times a dollar gets taxed in this country.

[Tootsfromscotland]

Okay dokie thanks guys Bummer though eh!?!

[housingcrashsurvivor]

Kash makes an interesting point. I was wondering if this wasn't because the original sales tax on a car might have gone to some other state. But wouldn't that be horrible if all our possessions were retaxed when crossing state borders.

I think that with boats, if you register in a separate state from where the vessel was purchased, that new state can demand the difference (if one) it would have collected in sales tax minus what was paid to the state in which the vessel was purchased.

Meanwhile, I think that all possessions changing ownership are subject to sales tax. Because of registration, it is easier to track & thereby levy the tax on cars & boats than most of the other items off Craigslist.

In light of a previous suggestion to downplay a vehicle's cost, the OP should be aware that according to How to Buy a Used Car - Division of Consumer Services, DOACS (http://www.800helpfla.com/usedcar_text.html - broken link)

"If the vehicle sells for less than 80 percent of the average "book value" for the specified model and year, you must provide proof of the actual sales price by affidavit signed by both parties.

The state may collect any delinquent sales tax with interest and may impose a penalty equal to twice the amount of the additional tax."

[Tootsfromscotland]

thats really useful to know thanks Housingcrash

[MortonR]

Originally Posted by housingcrashsurvivor

Kash makes an interesting point. I was wondering if this wasn't because the original sales tax on a car might have gone to some other state. But wouldn't that be horrible if all our possessions were retaxed when crossing state borders.

I think that with boats, if you register in a separate state from where the vessel was purchased, that new state can demand the difference (if one) it would have collected in sales tax minus what was paid to the state in which the vessel was purchased.

Florida does this as do other states. If you purchase a car in another state within six months of registering it in Florida, you are responsible for the difference between what you paid in the other state and Florida.

For example, if you paid four percent sales tax on a vehicle you purchased out of state and then registered it in Florida within six months of purchase, you would be liable for two percent (Florida's sales tax is six percent) of the selling price at the time of Florida registration/titling.

Sadly, you don't get the difference if you paid more elsewhere.


RM