Tax on a trailer purchased in Texas...???

[JC_In_Austin]

Does anyone know the percentage tax due on on, for example, a Scamp bought in Texas? I looked at the DMV Guide (from 2011) and couldn't find a %age that might be due.

Anyone know the rule?

Thanks!

[rbryan]

Originally Posted by JC_In_Austin

Does anyone know the percentage tax due on on, for example, a Scamp bought in Texas? I looked at the DMV Guide (from 2011) and couldn't find a %age that might be due.

Anyone know the rule?

Thanks!

Its 6.25% - due on registration.

On a used trailer, its also 6.25% of either the purchase price or the standard presumptive value (SPV), whichever is higher.

In most cases, the state will have a hard time calculating the SPV for a trailer, so they will base the tax due on the purchase price.

[JC_In_Austin]

Thanks so much. I thought that might be it (just bought a used car), but wasn't sure. I appreciate your help!

[Jack L]

Usually tax is due in the state the new buyer registers the trailer in. As a resident of Washington, when I buy a vehicle in another state, whether a dealer sale or private party sale, I pay the Washington tax when I bring it into Washington. If I buy a vehicle in Washington from a private party in Washington I pay the tax when I register the vehicle. Hope this helps.

[JC_In_Austin]

Thanks; the trailer and I both live in Texas, so...I'm pretty sure it's going to be 6.25%, same as the used car I just bought.

Thanks very much for your response! / JC

PS: I see now that wasn't clear in my original question!

[vintageracer]

Originally Posted by Jack L

Usually tax is due in the state the new buyer registers the trailer in. As a resident of Washington, when I buy a vehicle in another state, whether a dealer sale or private party sale, I pay the Washington tax when I bring it into Washington. If I buy a vehicle in Washington from a private party in Washington I pay the tax when I register the vehicle. Hope this helps.

This is true in most states HOWEVER several states such as Arizona have instituted sales tax collections on vehicles (trailers purchased from a dealer "may" also be included you would have check) purchased from an Arizona licensed car dealer when the buyer takes physical possession of the vehicle in the State of Arizona. The vehicle must be registered and sales tax collected in Arizona IF you want to drive it home! To avoid registration & sales tax collections in Arizona you must ship the vehicle out of the State of Arizona on a ICC registered shipper and provide a "Bill of Lading".

Basically a Tax Grab instituted by the State of Arizona legislature to help the state coffers benefit even more from all the collector car auctions that take place Phoenix/Scottsdale every January as the auctions are licensed dealers handling the transactions.

[Borrego Dave]

Originally Posted by vintageracer

This is true in most states HOWEVER several states such as Arizona have instituted sales tax collections on vehicles (trailers purchased from a dealer "may" also be included you would have check) purchased from an Arizona licensed car dealer when the buyer takes physical possession of the vehicle in the State of Arizona. The vehicle must be registered and sales tax collected in Arizona IF you want to drive it home! To avoid registration & sales tax collections in Arizona you must ship the vehicle out of the State of Arizona on a ICC registered shipper and provide a "Bill of Lading".
Basically a Tax Grab instituted by the State of Arizona legislature to help the state coffers benefit even more from all the collector car auctions that take place Phoenix/Scottsdale every January as the auctions are licensed dealers handling the transactions.

Good post Mike. I was stationed in Phoenix in the 70s and went to the BJ auction in Scottsdale but only could look at the eye candy back then . I have been thinking of picking up "the car I always wanted" so this info is something worth looking into.....as I live in Calif and we all know how the taxes are here .

[rbryan]

Originally Posted by vintageracer

Basically a Tax Grab instituted by the State of Arizona legislature...

Wow, didn't know that Jon.

That would be a deal breaker for me. Won't pay taxes on the same vehicle twice.

[vintageracer]

Originally Posted by rbryan

Wow, didn't know that Jon.

That would be a deal breaker for me. Won't pay taxes on the same vehicle twice.

You would not have to pay taxes twice.

You would already "own" the vehicle with a valid Arizona registration and title in your name when you return the vehicle to your state of residence. All you would have to do upon return to your state of residence is "transfer" the vehicle registration to your state of residence.

Basically the State of Arizona would screw your state out of sales tax!

[rbryan]

Except I don't know if Texas would accept that since I'm a Texas resident. Would be interesting to know how it would work.

[Jon Vermilye]

Originally Posted by vintageracer

You would not have to pay taxes twice.

You would already "own" the vehicle with a valid Arizona registration and title in your name when you return the vehicle to your state of residence. All you would have to do upon return to your state of residence is "transfer" the vehicle registration to your state of residence.

Basically the State of Arizona would screw your state out of sales tax!

Yes, but some states will dock you for the difference in sales tax during registration. I had that happen with a vehicle bought & registered in Washington state (My beloved, and much missed 1969 Camaro SS convertible). Had to pay the 2% difference between Washington & New York's sales tax.