Quote:
Originally Posted by dinonz
Wow - you really missed the point. You said:
"Why would car sales tax % even be different amongst states?"
Lets shorten that slightly:
"Why would sales tax % even be different amongst states?"
Why? Because states control their own sales tax that's why! Some don't have sales tax at all (Montana - research titling an RV or Supercar in Montana) and have income tax instead. Sorry but that question REALLY highlights your lack of understanding here.
Something else with registering vehicles in Montana - it circumvents exactly the problem you described. Instead of selling the car, you sell the LLC that owns the car. No sales tax on selling a company, and the new owner doesn't even have to re-title the car - the company still owns it.
Despite it potentially saving me tens of thousands in sales tax, I didn't go down the Montana route. Didn't need any reason for extra attention when driving my cars in Texas on Montana plates.
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I think it was perhaps you that misunderstood the point of this thread...
The question (states aside), is why a car sales tax exists in the first place as opposed to a usage tax for the states that have it? In the state of FL, I pay a 7% transaction sales tax on a product that is going to be registered yearly and have registration paid on...
For many states, its still a transactional tax which sounds very unfair and does not exist on any other known product. Oregon has a usage tax which appears to have far more sense.