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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.

  1. PRIUSIV2010

    PRIUSIV2010 New Member

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    IV
    Hi everyone,
    Thanks for the great info and tips. I’ve founded almost all of my questions answered by using the search engine so far, except this one. I just joined yesterday, but the time I’ve already spent on PC is alarming and educating at the same time. :)
    We had our eyes on the Prius about 1 ½ years ago after we tried the rental Prius for a week long trip. Then, we seriously and frantically began our search after hearing about the CARS program. It so happens that our van has some electrical problem that would cost up to $3000-4000 to fix!
    We called and visisted more than 5 dealerships and finally located the IV SR we wanted in the time frame that is needed to take advantage of the clunker program. Ours should arrive this week.
    My question is the sales tax where my dealership is located is 8.375% versus where I live, 9.500%. However, they used the 9.5% tax on the car, citing that’s the California law. Otherwise, people will just buy only from the lowest sales tax county. ???? Is this true?
    Thanks in advance for the info.
    Priusiv2010
     
  2. MaggieMay

    MaggieMay Active Member

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    Gloucester, MA
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    2010 Prius
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    IV
    Hi and :welcome: you'll find that your county/state of residence isn't gonna miss a cent. You'll pay taxes based on where you rgister the car / where you live. I purchased out of state, and paid Mass. sales tax when I registered the car.

    Good luck and enjoy the car!!
     
  3. angelrob

    angelrob New Member

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    Same in NY...
     
  4. kilork

    kilork New Member

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    Yep, you pay tax based on where you register/live. Some states allow to deduct your clunker from the taxable amount, so it may help a bit.
     
  5. creativeguy

    creativeguy Member

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    Sales tax has moved beyond monetary in the Bay Area. Basically, you bend over, pull down your... well you get the picture. :(
     
  6. fuzzy1

    fuzzy1 Senior Member

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    This is true in Washington State also.
     
  7. ceric

    ceric New Member

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    Sales for automobile is special. It is based on where you live.

    If it makes you feel any better, the sales tax in Alameda county (Fremont to Oakland) is 9.75%.
    Beat that!
     
  8. darkleafar

    darkleafar Member

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    Houston TX
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    2012 Prius v wagon
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    Three
    wow, that's some high taxes. 8.25% here in Houston, and 7.5ish% in pasadena, tx
     
  9. 32kcolors

    32kcolors Senior Member

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    Easily beaten in Inglewood and El Monte, where it's 10.25%
     
  10. MaggieMay

    MaggieMay Active Member

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    Yikes! you're all going to hate hearing that I beat the increase in MA tax and paid 5% (August 1 it went up to 6.25%). It was a savings over the Maryland sales tax where I bought the car!
     
  11. jay_man2

    jay_man2 jay_man_also

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    I won't be jumping in to tell you that Virginia is still 3%, but do remind everyone that apparently sales taxes on vehicle purchases after Feb. 17, 2009 are deductible on your Federal return this year.

    Sales Tax Deduction for Vehicle Purchases
     
    3 people like this.
  12. PRIUSIV2010

    PRIUSIV2010 New Member

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    Thanks, everyone! And special thanks to Jay_man for that important tip. I'll be sure to mention it to my accountant.

    Priusiv2010
     
  13. Whuzz

    Whuzz New Member

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    Sales tax in the netherlands is 19%

    My IV+Nav costed me roughly €34000. So yeah. You bunch of lucky US bastards :p
     
  14. theowl

    theowl Prius Convert

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    Ah, but your Prius comes with health insurance standard. That's a very expensive after market add-on here in the U.S. (meant as a joke, not political commentary!)
     
  15. Jim Calvert

    Jim Calvert New Member

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    In Ohio the sales tax is based on the tax rate of the county in which you live - regardless of the sales tax of the county where the dealer is located. For example, if the tax rate is 5% in the county where the dealer is located, but the county where you live has a tax rate of 10%, you must pay 10%.
     
  16. pdxrose

    pdxrose New Member

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    Also, before you shop out of state, make sure its not like CA where you cannot drive it off the lot without paying, even if you live elsewhere. You have to flatbed it to the state line. Not every CA dealer I called told me that initially. So wasted time and luckily did not end up on a lot when I found out. That's why I ended up buying in ID instead when I could not find what I wanted locally. I was allowed to drive it out with no tax. While most dealers are knowledgeable and up front, best to check independently on the other state's requirements. Good luck!
     
  17. equake

    equake Member

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    Gotta luv that European socialism or for the US the future Obamanism. We will soon catch up to you as America takes on that debt and the Administration takes over private industry.

    10.75% tax in Pico Rivera talk about taxing the poor

    My 1.5 cents worth
     
  18. plow

    plow Junior Member

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    Location:
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    Vehicle:
    2017 Prius Prime
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    Prime Premium
    Sales Tax in Connecticut on a Prius is zero percent. Nor can the vehicle be "smogged", so that saves a $ 20 bi-annual charge as well.
     
  19. fethomas

    fethomas New Member

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    I don't think the tax matters. It looks like you can get it back on your Federal income tax.

    IR-2009-30, March 30, 2009
    WASHINGTON — The Internal Revenue Service announced today that taxpayers who buy a new passenger vehicle this year may be entitled to deduct state and local sales and excise taxes paid on the purchase on their 2009 tax returns next year.
    “For those thinking about buying a new car this year, this deduction may give them a little more drive to make their purchase this year,†said IRS Commissioner Doug Shulman. “This deduction enables taxpayers to buy now and get cash back later on their tax returns.â€
    The deduction is limited to the state and local sales and excise taxes paid on up to $49,500 of the purchase price of a qualified new car, light truck, motor home or motorcycle.
    The amount of the deduction is phased out for taxpayers whose modified adjusted gross income is between $125,000 and $135,000 for individual filers and between $250,000 and $260,000 for joint filers.
    IRS also alerted taxpayers that the vehicle must be purchased after Feb. 16, 2009, and before Jan. 1, 2010, to qualify for the deduction.
    The special deduction is available regardless of whether a taxpayer itemizes deductions on their return. The IRS reminded taxpayers the deduction may not be taken on 2008 tax returns.
     
  20. esoniat

    esoniat Junior Member

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    I GA you pay the tax for where you are going to register it, for me 6%.
    In GA if you buy it out of state and drive it in and if the state you bought it in didn't collect the sales tax, GA will do it when you register.

    It has been a decade or more since you could easily get away with moving a new care from an non tax state to one with tax. I did in in 1987 with my FJ60 and haven't been able to do it again.