[Ctx]

Hi all,

For those of you in Texas, when one trades a vehicle (as I am about to do for my new Murano (yay!) are the taxes subtracted from the purchase value or the purchase value minus the trade? I've googled and no luck finding out. Thanks!

Soon to be in a Platinum Murano!

 

[Enforcer]

Welcome and be sure to post pics of your new ride. I don't even know how they do this in Alabama for sure. It would make sense to me that you would pay tax on what you paid, ie after subtracting trade in. So since that makes sense its probably just the opposite.:2:

 

[Ctx]

Thanks Enforcer. I will be trading from a Miata (which I have driven for the past 12 years) I'm getting myself psyched for the larger ride. Not sure what I will do with a backseat and an automatic.. but I am sure looking forward to being able to haul stuff...

Anyhow, pics soon!

 

[SugarRushMurano]

!

Thanks Enforcer. I will be trading from a Miata (which I have driven for the past 12 years) I'm getting myself psyched for the larger ride. Not sure what I will do with a backseat and an automatic.. but I am sure looking forward to being able to haul stuff...

Anyhow, pics soon!

Welcome to the forum! As fellow miata owner ( I still have the NB), I can tell you that the MO is a GOOD choice :4:

 

[Ctx]

Re: !

Welcome to the forum! As fellow miata owner ( I still have the NB), I can tell you that the MO is a GOOD choice :4:

Hey there. I wish I could still be a fellow miata owner after this purchase.... the two vehicle thing won't work for me though so I guess I'll have to get used to the larger vehicle. Ah well. I am happy to be supported by one of the Miata brethren!

 

[06murano]

texan in texas

ctx,
i went to 3 car dealers before buying my mo, and all three car dealers said the same thing...you don't pay taxes on the amount of your trade in.
if you can give me the % of sales tax for cars we pay here in texas, i can let you know if they charged me taxes on my full amount or not. but you'll have to wait until i get home tonight...

 

[pacmo]

Texas sales tax is 6.25% and yes you sould not pay taxes on your trade. Its something about not paying tax twice, since you paid the tax on your trade when you purchased it.

Pacmo

 

[Mr3Putt]

Texas sales tax is 6.25% and yes you sould not pay taxes on your trade. Its something about not paying tax twice, since you paid the tax on your trade when you purchased it.

Pacmo

True.

But, whoever buys your car will pay sales tax on it again.

Hypothetically, if a car is sold numerous times, the car could have had more taxes paid on it then it was originally valued.

 

[pacmo]

True.

But, whoever buys your car will pay sales tax on it again.

Hypothetically, if a car is sold numerous times, the car could have had more taxes paid on it then it was originally valued.

Yes this is true hypothetically. The rule on double taxation applies to you the owner not the car. The individual owner cannot be taxed twice for a single item. This is a very old law. One in which our country was founded on. I belive it started around something called the Boston Tea party!



Pacmo

 

[raycie]

Yes this is true hypothetically. The rule on double taxation applies to you the owner not the car. The individual owner cannot be taxed twice for a single item. This is a very old law. One in which our country was founded on. I belive it started around something called the Boston Tea party!



Pacmo

O.K.... so hypothetically... what would happen if you own a car, trade it in, then 1 year later, the car being sold and traded back in, or never sold after you traded it in... if you wanted to buy it again, would you get charged a tax?

 

[Mr3Putt]

Yes this is true hypothetically. The rule on double taxation applies to you the owner not the car. The individual owner cannot be taxed twice for a single item. This is a very old law. One in which our country was founded on. I belive it started around something called the Boston Tea party!

Pacmo

Actually, the Boston Tea party was in defiance of "Taxation without representation", not a double tax.

The sales tax in question is an individual state issue, not regarding any Federal law, old or not.

Although you may not be taxed twice by the same authority, for the same item, at the same time, you can certainly pay double taxes. Gasoline for example has a Federal tax, a state tax, and in some instances a local tax.

Another example of double taxation would be stock dividends. A corporation pays income taxes on it's earnings, then, the shareholders will pay income tax on the dividends (earnings) they receive.

In any event, there are too damn many taxes. ( I just wrote my final 2005 payment to the IRS, ca ya tell?) I am using the dollars in my checking account that are left after my taxes.......
:3: :3:

 

[pacmo]

Actually, the Boston Tea party was in defiance of "Taxation without representation", not a double tax.

The sales tax in question is an individual state issue, not regarding any Federal law, old or not.

Although you may not be taxed twice by the same authority, for the same item, at the same time, you can certainly pay double taxes. Gasoline for example has a Federal tax, a state tax, and in some instances a local tax.

Another example of double taxation would be stock dividends. A corporation pays income taxes on it's earnings, then, the shareholders will pay income tax on the dividends (earnings) they receive.

In any event, there are too damn many taxes. ( I just wrote my final 2005 payment to the IRS, ca ya tell?) I am using the dollars in my checking account that are left after my taxes.......
:3: :3:

Yea, Yea I know the whole "Taxation without representation" thing was what it was really about but I thought there was also something about double taxing as well. Something about being taxed first by Europe and then again by the local magistrates??? I can't quite remember US History was a long time ago.

I feel your pain on on paying the tax man. For years and years I always owed and owed and owed... Then I bought a house and now I can write off all that interest and I get a nice refund every year!

 

[pacmo]

O.K.... so hypothetically... what would happen if you own a car, trade it in, then 1 year later, the car being sold and traded back in, or never sold after you traded it in... if you wanted to buy it again, would you get charged a tax?

Hypothetically speaking yes, since you relinquished ownership of the car. The law in TEXAS is that you can't be taxed twice on a single CAR while you retain ownership of said car.

pacmo