[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

[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.

[zek157]

It could make some cars cheaper. I would subtract out the tax amount from what I would be willing to pay. Of course some people wouldn't be able to figure that out (public schools provide great educations).

[MrEdd]

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.

Answer: they desperately hope they can make a bunch of money on this before it goes into the courts, because, this being Texas not Kaliforia the courts are liable that this tax means that the state is warrantying that much value in the vehicle in question, and is responsible to deliver the same.