Advice on avoiding sales tax.

Hal88 · #1 07-07-2006, 05:40 PM

Ok so I bought this x recently from a private party and I wonder how can I avoid paying the sales tax in Jersey, the previous owner already paid for the tax when he first bought it right? so why do I have to pay again, I don't understand how they justify that. Any (legal) advice is greatly appreciated.

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Wagner · #2 07-07-2006, 06:25 PM

Why do you have to pay sales tax? Because you purchased something. Unless it was a family memeber it doesn't really matter.....

There is no legal way around sales tax unless someone 'gifted' you the vehicle. So the only thing you can hope for is that the seller was kind enough to lower the price on the bill of sale, since that is what they will base tax off of.

babysvt · #3 07-07-2006, 06:39 PM

They are getting really picky here in Washington. If the car is gifted they will blue book the car to esimate the value for sales tax and if the bill of sale states an amount they will blue book it to verify that it is a reasonable amount. I agree that you shouldn't have to pay sales tax on something that has already been taxed. Good luck!

Hal88 · #4 07-07-2006, 06:45 PM

Actually the seller left the sale blank, to my discretion. It's BS how the state gets away with a double tax.

AutoXer · #5 07-07-2006, 06:45 PM

Quote:

Originally Posted by Hal88

Ok so I bought this x recently from a private party and I wonder how can I avoid paying the sales tax in Jersey, the previous owner already paid for the tax when he first bought it right? so why do I have to pay again, I don't understand how they justify that. Any (legal) advice is greatly appreciated.

Yes, I just hate that law. It's double and triple and quadruple taxation on the same thing. They do because they can, that's how they justify that! Unfortunately there is no way around it.

Except..... here in California, if you are an out of state owner of a car for 12 months, then bring it into CA, then you can escape the sales tax. So one can technically setup a company that buys the car from a no sales tax state, register it there, and then eventually bring it into CA, and avoid all sales taxes. But sometimes the hassle just isn't worth it! Just food for thought.

SmokyMtnX5 · #6 07-07-2006, 07:09 PM

Here in TN you can "even-trade" a car and pay a nominal sales tax or none at all. Me and a buddy did this about 6 mos. ago with 2 Jeeps. You still have to pay registration fees, etc.