tax on trade in

[SPECTACUALR SPIDERMAN]

In my state (WA) tax is only paid on the difference between the price of the vehicle and the trade in amount. Sounds like they might be trying to pull a fast one.

same for NY

 

[wyliec]

You guys in Michigan are screwed.



Your dealer is wrong. It's not 50% of the trade-in value, it's the trade-in value up to a max of $2500.

Check these out.

https://www.google.com/url?sa=t&rct...=0OHgNOTfoGLBrjwv3rD-ow&bvm=bv.93990622,d.aWw


https://www.google.com/url?sa=t&rct...=2AqA58Id4LzvZTuI1t0NLg&bvm=bv.93990622,d.aWw

Sounds to me that the OP was getting a better deal on the sales tax from his dealer. If I were the OP, I'd take the deal, all else being equal.

 

[BLUEKNIGHT911]

SAG

Virtually every state Attorney General's office has people who work nothing but consumer affairs issues . . . why wouldn't someone ask them to do their job?

The key word here is " VIRTUALLY ", and at the SAG's office I'll bet they have LOOK it up, to get the answer.......I don't know of any State that Doesn't have a Motor Veh office.......................and Yes you are welcome .......Mike :thumbup:

 

[jwulf74]

I would recommend nor letting the dealer pay the taxes or anything on your behalf. Go down and pay them direct. Here we have to do it through the country treasurer (even though it is a state tax). Here we only pay on the difference between the purchase price and the trade in.

 

[IdahoMtnSpyder]

Paying tax on the difference is probably the most common approach for those states that have a ST, but from what I read Michigan just in 2013 started allowing any deduction. They were concerned about the loss in ST revenue and the 2013 law had a 25 year phase in period with annual increases until they reach a max of $14000 allowance. Can you see what $14000 in 25 years compares to today? Like I said, those guys up there are screwed. Apparently they are shortening the phase in, but still, I feel for them.

 

[wiredgeorge]

dealer in Michigan says only half the value of trade in goes to reducing sales tax. Anyone heard of this?:chat:

I would take care in listening to advice from folks who don't live in your state. In Texas, we have a county tax office to call with this type question. If you find the dealer is lying, I would report him to the appropriate state office and find another dealer. If he is telling the truth, move to Texas where the vehicle tax is paid on the difference between purchase price of the new vehicle and trade in.

 

[Oldmanzues]

Ohio is the difference right now, but I hear they are trying to change to full price on the new one.
I might suggest calling a car dealer to see what they say. would not be legally binding but information'
Oldmanzues

 

[Bob Denman]

I would take care in listening to advice from folks who don't live in your state. In Texas, we have a county tax office to call with this type question. If you find the dealer is lying, I would report him to the appropriate state office and find another dealer. If he is telling the truth, move to Texas where the vehicle tax is paid on the difference between purchase price of the new vehicle and trade in.

:agree:
That's why I said...

"The Moral of this Story: :lecturef_smilie: Know your State's laws about this sort of thing. Mike is correct; call your DMV office, and ask them about it. "

 

[tsmdvl3]

thanks everyone for your help. got it worked out! hopefully this Thursday Ill be on a new F3s. thanks

 

[tsmdvl3]

thanks everyone for the help! I think I got it worked out. Hopefully this Thursday Ill be on a new F3s

 

[k3232668]

Glad you got it worked out. Thursday is supposed to be nice weather, only day this week with out rain/storms.

 

[IdahoMtnSpyder]

thanks everyone for your help. got it worked out! hopefully this Thursday Ill be on a new F3s. thanks

What was the end result re: the sales tax?

 

[Bob Denman]

thanks everyone for the help! I think I got it worked out. Hopefully this Thursday Ill be on a new F3s

:congrats: :thumbup:
The best of luck with your new ride! :cheers:

 

[tsmdvl3]

michigan tax was paid on the price of the new vehicle regardless of trade in. the law was changed a couple of years ago to allow trade in value to be subtracted from price of new vehicle before tax are calculated. the change is gradual so each year 500.00 is added to trade.

 

[2ndChildhood]

michigan tax was paid on the price of the new vehicle regardless of trade in. the law was changed a couple of years ago to allow trade in value to be subtracted from price of new vehicle before tax are calculated. the change is gradual so each year 500.00 is added to trade.

I was pleasantly surprised I got $150 back because of the trade-in calculation.


ToM
SpyderFest '16

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