Used Car Sales Tax

Okay...called the local tag office and they're un-responsive. Searched the web and I think I understand...but want to see if any of the finance/tax gurus on here can tell me.

I'm planning on purchasing a used vehicle and I've given the 4 different possibilities below. I know the top two, just more unsure about the bottom two.

Private party in-state purchase is tax free

Dealer in state...pay tax of the county I live in.

Private party out of state, purchase is tax free. True?

Dealer out of state...pay tax of the county I live in. True?

rjcruiser said:

Okay...called the local tag office and they're un-responsive. Searched the web and I think I understand...but want to see if any of the finance/tax gurus on here can tell me.

I'm planning on purchasing a used vehicle and I've given the 4 different possibilities below. I know the top two, just more unsure about the bottom two.

Private party in-state purchase is tax free

Dealer in state...pay tax of the county I live in.

Private party out of state, purchase is tax free. True?

Dealer out of state...pay tax of the county I live in. True?

Click to expand...

Private sales are not subject to sales tax. Don't think the bill to change that passed but it would not take effect until July 1.

Check title first, if it is in the name of a company or corporation you will owe sales tax. Such as Joe's Lawn Service.

jimbo4116 said:

Check title first, if it is in the name of a company or corporation you will owe sales tax. Such as Joe's Lawn Service.

Click to expand...

Right...got that.

I guess my question is more on the out-of-state sales.

Does that make a difference?

Out of state depends on the state. Texas for example, just bought a vehicle there and private sales are subject to sales tax.

T.P. said:

Out of state depends on the state. Texas for example, just bought a vehicle there and private sales are subject to sales tax.

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I will be registering the vehicle in GA, so I don't care about how other states do it. I know California charges for all...just want to know about Georgia.

If I buy a vehicle out of Michigan, I'll pay the sales price to the person...and when I go to register it here in GA, are they going to charge me 7% of the sales price?

If I buy from a dealership in North Carolina, will I have to pay the sales tax when I register it in Georgia?

Out of state depends on the state. Normally when you purchase out of state with a dealer you pay sales tax in your county in Ga when you purchase tag. If you don't pay tax on a dealer purchase you will eventually get billed by State of GA-may take 2-3 years.

Also if you are trading at a dealer in GA, you only pay tax on the cash difference above the trade in value and not on the full purchase price of the "new" vehicle.

Actually, after reading a little more it seems you will not have to pay if purchaced from a private individual, but you will have to pay taxes here in Ga if it is purchased from a dealer or the private individual has it registered as a business vehicle. From what i see, Ga will collect taxes if required.


http://motor.etax.dor.ga.gov/motor/registration/regrequirements.asp

◦Sales Tax Click here to connect to State Regulation 560-12-1-.07 regarding sales tax. When applying for a Georgia title for a vehicle that was purchased form an out-of-state/country dealer or business or a Georgia business, Georgia sales tax must be paid at the time of application or proof must be submitted that the sales tax has already been paid. Sales tax is also due when the dealer charges the wrong sales tax rate. A Georgia title and license plate will not be issued until any sales tax due is paid. The amount of sales tax due is based on the vehicle's purchase price or the vehicle's fair market value if a sales invoice is not submitted. Click here to determine the sales tax rate in your county. The published sales tax rates for counties include the State of Georgia 's sales tax rate. For additional information regarding sales tax, please contact the DOR Regional Office serving your county.

Jim Ammons said:

Out of state depends on the state. Normally when you purchase out of state with a dealer you pay sales tax in your county in Ga when you purchase tag. If you don't pay tax on a dealer purchase you will eventually get billed by State of GA-may take 2-3 years.

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Living on the GA/SC state line I have purchased new vehicles from SC and paid them 300.00 in sales tax (that’s all you pay in SC on a new car ) and the state of Ga billed me the difference of what it would have been if I had bought it here in Ga based on the county I live in.

I bought the car in my avatar in Maryland in 2004 from an individual. I did not pay any taxes when I registered it in GA. I talked with a NC dealership about taxes and they said that I would have to pay GA sales tax when I registered it.

Individual sales (called "casual" sales) are not subject to sales tax. You will have to file an affidavit with the Dept. of Revenue. They will send you a bill, you return the bill and the affidavit.

Biggest catch is what is mentioned above -- individual has the vehicle registered in a company name so he can write it off on his income taxes. Make sure you examine the actual title certificate before handing over any money.

Twenty five ought six said:

Individual sales (called "casual" sales) are not subject to sales tax. You will have to file an affidavit with the Dept. of Revenue. They will send you a bill, you return the bill and the affidavit.

Biggest catch is what is mentioned above -- individual has the vehicle registered in a company name so he can write it off on his income taxes. Make sure you examine the actual title certificate before handing over any money.

Click to expand...

How do I file the affidavit? Is there a copy of one I can just use? or should I just wait until if/when the state tries to collect?

rjcruiser said:

How do I file the affidavit? Is there a copy of one I can just use? or should I just wait until if/when the state tries to collect?

Click to expand...

I think the last time I did it, I just typed up a form with the former owner's information, had it notarized and sent it to the Dept. of Revenue. There may be a form now.

It's done through the local tag office, and they should be able to give you precise information.

the trucks ive bought from an out of state dealer i had t pay half the sales tax in that state & the rest to the state of georgia.

I bought a Tahoe in North Carolina a few months ago from a used car dealer. No taxes paid to North Carolina, but had to pay taxes on it here in Ga before I could register it.

Thanks for all the advice.

Found a vehicle out of Florida from a private party. No tax Now...hopefully will get all the paper worked out and I'll be flying down to pick it up by the end of the week.