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Posted by Taxmanhog on November 17, 2006, 11:11 pm
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> "Drew Edmundson" wrote...
>>> zutalors212 wrote:
>>> I've got some questions on the purchase and subsequent sales
>>> of a 2nd hand car.
>>>
>>> 1. I paid a 5% tax on this car the day that I purchased it. Could I
>>> get a reimbursement since I didn't use the car for the whole year?
>> Not if it was sales tax. The sales/use tax is not an annual
>> tax; it is a tax imposed on the sale transaction and would
>> apply if you had used the car for only one day.
>>
>> Unless it qualifies for an occasional sale exception (as
>> sales of vehicles by private parties often do, depending on
>> the state), your sale of the car to a third party is also
>> subject to sales tax.
>>
>> If the tax you paid was a registration fee or ad valorem tax
>> paid on registration, it is paid for the period you use the
>> car -- no refund for a partial year. The subsequent owner
>> may get a few months' free ride on your registration fee,
>> again depending on state law.
> A bit off topic, in NC you can actually get a partial refund
> of the personal property tax. I have never personally found
> it worth the effort because I usually drive my cars until
> they are almost worthless.
This is applicable in Mass too, but on older auto's might
not be worth the effort as you point out.
If one were to TRADE-IN the auto on purchase of a
replacement, the trade value reduces the taxable base for
the acquired automobile sales tax.
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