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Why Tax rate different form purchase price?

 

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Subject Author Date
Why Tax rate different form purchase price? zephyr 11-17-2006
Posted by zephyr on November 17, 2006, 1:39 am
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I just received my Title Complete Notice for a used
Volkswagen I bought and noticed that the "Original Tax
Value" is several thousand dollars higher than the purchase
price I paid.

Will the cost for my tags be unnecessarily high now?

Why the difference?

thanks

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Posted by Bill Brown on November 17, 2006, 11:30 pm
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zephyr wrote:

> I just received my Title Complete Notice for a used
> Volkswagen I bought and noticed that the "Original Tax
> Value" is several thousand dollars higher than the purchase
> price I paid.
>
> Will the cost for my tags be unnecessarily high now?

Without knowing your state of residence, no one can give you
a useful answer.

> Why the difference?

Without knowing your state of residence, no one can give you
a useful answer.

Even knowing your state doesn't mean any of the regulars
here will know the answer unless one of them practices in
your state.

<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>

Posted by Herb Smith on November 17, 2006, 11:30 pm
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zephyr wrote:

> I just received my Title Complete Notice for a used
> Volkswagen I bought and noticed that the "Original Tax
> Value" is several thousand dollars higher than the purchase
> price I paid.
>
> Will the cost for my tags be unnecessarily high now?
>
> Why the difference?

This is a STATE tax issue and could involve sales tax,
annual registration, or both. There are 50 states (+DC), no
two pf which handle this in exactly the same way. Why not
just contact the Vehicle Registration or Licensing
Dpaartment office for your state?

<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>

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