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What sales tax do you pay: dealership's or where you live?

Discussion in 'Gen 3 Prius Main Forum' started by PRIUSIV2010, Aug 18, 2009.

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  1. HTMLSpinnr

    HTMLSpinnr Super Moderator
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    I'm going to summarize: It depends on your state and/or county.

    In CA: I paid tax based on my county of residence. At the time this was the state tax + the county's additional sales tax. This made dealer selection more about experience and the bottom line as my tax rate was identical regardless.
    In AZ: I paid "tax" (1) on the location of the dealership. In AZ, that would be state, county, and, in many cities, city tax. This played a major part in my choice of dealer.

    (1) In AZ, there is no true "sales tax", but rather a "transaction privilege" tax charged to the business. The businesses are allowed to, and almost always do, pass this cost on to the buyer, calling it "sales tax". Regardless of whether it's collected, the business must pay on all transactions that take place in the state.
     
    #21 HTMLSpinnr, Aug 22, 2009
  2. viprius

    viprius Junior Member

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    Wow...I thought 9.75 that I paid in LA County is the highest. California is bleeding money and so are its residents. No more fun in living in CA anymore.

    Time for mass exodus to New Hampshire :)
     
    #22 viprius, Aug 22, 2009
  3. viprius

    viprius Junior Member

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    Even though the Sales Tax on vehicle purchase after Feb 17, 2009 is tax deductible, which is of course good, the amount of money you will get back is Sales Tax you paid * % Income Tax you pay.

    i.e.

    If your income tax bracket is 25% and you have paid @ 3000 tax on your car, you will get back 25% * 3000 = $750.
     
    #23 viprius, Aug 22, 2009
  4. jay_man2

    jay_man2 jay_man_also

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    Yes, but any other time I'd get nothing, so a percentage of something is money in the back, baby! :p

    Hope you don't spend too much time around the mouths of gift horses. :D
     
    #24 jay_man2, Aug 22, 2009
  5. tumbleweed

    tumbleweed Senior Member

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    It works both ways. I live in Oregon (no sales tax) if I buy a car in Washington (fairly hight sales tax) I don't have to pay their sales tax. If on the other hand someone from Washington buys a car in Oregon they pay no sales tax when they buy it but they will have to pay the Washington sales tax when they get home and register it.

    This is suppose to apply to other purchased as well but it's hard to enforce on things other that vehicles because people are not required to register furniture and refrigerators, not yet anyway.
     
    #25 tumbleweed, Aug 22, 2009
  6. viprius

    viprius Junior Member

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    Yes that's true, I have lived in PA and MA in the past and I have seen people traveled to Delaware (PA neighbor) for big ticket purchases to save sales tax. I am not really sure about NH and Sales Tax but there is no income tax in NH.
     
    #26 viprius, Aug 22, 2009
  7. frogpond1

    frogpond1 New Member

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    Lucky for me here in CT there isn't a sales tax on hybrids and they just extended the tax break through to Oct of 2010.
     
    #27 frogpond1, Aug 23, 2009
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