Sales Tax question
Thread Starter
Melting Slicks
Joined: Mar 2003
Posts: 2,928
Likes: 55
From: Port Saint Lucie, Florida
Sales Tax question
Hi
Being that l live in New Jersey l just want to make sure that l have all my ducks in a row.
If l use my vette as a down payment or equal trade to a dealer in New Jersey for another vette, what is my tax libility?
Now what if l do the same but in Mass.
Thanks
Alan
Being that l live in New Jersey l just want to make sure that l have all my ducks in a row.
If l use my vette as a down payment or equal trade to a dealer in New Jersey for another vette, what is my tax libility?
Now what if l do the same but in Mass.
Thanks
Alan
Banned Scam/Spammer
Joined: Jul 2006
Posts: 2,911
Likes: 10
From: Simi Valley CA
Don't know those states specifically, however I've bought/sold many cars out of state. The sales tax is "where you live" and for the full amount of the new car. You'll either pay the dealer (regardless of where he is) your state sales tax/registration for the new car or you'll pay the sales tax at the DMV when you register it. Your trade in has zero effect on that.
Race Director
Joined: Nov 2004
Posts: 11,069
Likes: 1,290
From: Central Ma
Here in mass if you buy for 20k with a 10k trade the sales tax will be based on the 10k.
So it's a consideration as to trading or selling outright.
And thanks to our wonderful state government that rate is now 6.25%.
I bought and sold two vehicles this year and sold the two I had myself.
So it's a consideration as to trading or selling outright.
And thanks to our wonderful state government that rate is now 6.25%.
I bought and sold two vehicles this year and sold the two I had myself.
Racer
Joined: Aug 2007
Posts: 347
Likes: 0
From: Fair Lawn NJ
In New Jersey when you trade a car against a another car you pay tax on the net difference. As said before if the new car is 20K and the trade is 11k, you will pay the 7% tax on the 9k difference. Sorry, I can't help you if you buy the car from another state but I seem to remember NJ will charge you the tax on the whole thing. Don't necessarily take me word on this and check it out with DMV. Remember you live in NJ and won't pay tax to Mass. but will pay tax to NJ when you register the car. Hope I helped a little.
Race Director
Joined: Nov 2004
Posts: 11,069
Likes: 1,290
From: Central Ma
In New Jersey when you trade a car against a another car you pay tax on the net difference. As said before if the new car is 20K and the trade is 11k, you will pay the 7% tax on the 9k difference. Sorry, I can't help you if you buy the car from another state but I seem to remember NJ will charge you the tax on the whole thing. Don't necessarily take me word on this and check it out with DMV. Remember you live in NJ and won't pay tax to Mass. but will pay tax to NJ when you register the car. Hope I helped a little.
Wow, you're even worse than us at 7%.
Definitely two of the worst states.
Good advice to confirm with the DMV/state.
Advanced
Joined: May 2007
Posts: 97
Likes: 0
From: Sterling VA
In New Jersey when you trade a car against a another car you pay tax on the net difference. As said before if the new car is 20K and the trade is 11k, you will pay the 7% tax on the 9k difference. Sorry, I can't help you if you buy the car from another state but I seem to remember NJ will charge you the tax on the whole thing. Don't necessarily take me word on this and check it out with DMV. Remember you live in NJ and won't pay tax to Mass. but will pay tax to NJ when you register the car. Hope I helped a little.
Also check to see if they issue short term transport permits. Virginia issues a 3 day permit for $5.00 which you can pay for online and print on your computer printer if you have a valid Virginia driver's license. It allows you to buy a vehicle and drive it back to the state without having to worry over the county license, inspection sticker, and emissions check. Once you go to register it however you have to go through the hoops, safety inspection, emissions inspection, county license, state plate, title change, registration, sales tax, etc. You can get a second 3 day permit but then they cut you off. Guess they figure any place you buy a car and drive it back should be within 6 days total.
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Racer
Joined: Aug 2007
Posts: 347
Likes: 0
From: Fair Lawn NJ
I should make one small correction NJ no longer calls it DMV (Department of Motor Vehicles). It is now MVC or Motor Vehicle Commission. If you are going to Google this, which is good advice, you might need to know this info.