Buying a used car? Prepare for the tax bill [TEXAS]

STAR-TELEGRAM ^ | Sep. 26, 2006 | ANTHONY SPANGLER

[Dubya]

The measure was among several bills passed by the Texas Legislature to generate money for school financing.

And Gov Perry.

[ecomcon]

It's for the kids.

[P-40]

to generate money for school financing.

Well...it does take a lot of money to educate Mexico's children.

[SZonian]

Already done here in the People's Republik.

Sucks too, you can't write a receipt for $1 because they will check the blue book and then tax accordingly.

I'm sick of taxes.

SZ

[cheme]

Most of these vehicles have already been taxed in Texas once on the original purchase, now the greedy tax collectors,not only are taxing a car at least twice, but want to make their own apprasial of the car.

[tacticalogic]

So someone buying a car cheap because it needs work is going to get taxed as if it's in good working order. Nice.

[Dust in the Wind]

Kansas tried that. I think sales tax is on the sale price; period, if they raise property taxes/tag rates that is a whole different beast.
I haven't bought a vehical since the laws were bantered so am not sure how it is now.

[edcoil]

Seems not government is taxing the perceived value not the actual value

[The South Texan]

And Texas is supposed to be a Republican State???? (sigh)

And we like to call Massachusetts , Taxachusetts or make fun of California because of some of their tax scams.

We'll soon be called the Great State of Taxes if this continues.

[monday]

The government is an organized crime syndicate specializing in extortion.

[daviddennis]

I'd certainly trade your tax regimen cheerfully for California's, where you hit the maximum 9.3% tax bracket on all income over (I think it was) $40k or so.

How do they handle the fact that the value of cars depends dramatically on mechanical condition? This might make cars in poor condition entirely unsellable in Texas.

I guess the car dealer lobby has been hard at work.

D

[steveegg]

Guess the car dealerships are going to be very busy on Saturday.

[IllumiNaughtyByNature]

So next time I go to a garage sale or flea market can I expect a tax bill from the state on the "assumed value" of the used items, etc. that I purchase? Sounds like a greasy slide toward a pile of ....

[pierrem15]

A little something to help the new and used car dealers associations (one of the biggest guilds contributing to state and local government).

[steveegg]

The government is an organized crime syndicate specializing in extortion.

Quote of the day. Mind if I borrow that for a tagline after the election?

[joebuck]

Would this apply if the vehicle was purchased out of state?

[stephenjohnbanker]

The blue book is WAY HIGH on the actual value of most cars. In luxury cars, it is up to 5000 high! Bend over, and grab your ankles!!

[Psycho_Bunny]

I don't buy cars all that often.....so I was surprised when I was gifted a 77 Nova in California, registered it in Washington and was told I had to prove that at some point, somewhere - anywhere - a tax was paid on it.

If I couldn't prove that a tax was paid on it at some point since its manufacture and subsequent transfers and sales....I had to pay Washington State sales tax on it.

Seriously.  It's ridiculous.

 

[tacticalogic]

How do they handle the fact that the value of cars depends dramatically on mechanical condition? This might make cars in poor condition entirely unsellable in Texas.

It will definitely send some cars that would otherwise be salvagable to the scrap yards. You can't afford to buy the car needing work, pay the sales taxes on it as if the work is already done and then pay the sales taxes all over again when you go to buy the parts to fix it.

[tacticalogic]

A little something to help the new and used car dealers associations (one of the biggest guilds contributing to state and local government).

I think if they could, they'd outlaw self-sufficiency outright.