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dbontherun's avatar
dbontherun
Explorer
Oct 25, 2013

Sales tax on RV purchase

Is it correct that you pay sales tax on the balance after trade in and down payment is deducted? Has anyone ever heard of charging you closing cost, Florida tire tax and Florida battery tax when purchasing an RV? Your help would greatly be appreciated.

DB

25 Replies

  • mileshuff wrote:
    It varies by state but generally you will pay sales tax on the purchase price minus trade in. Down payments are still taxed. Reasoning is that you already paid sales tax on the trade when it was purchased new. Again, it varies widely by state tax codes.


    New York is like this - the sales tax is based on the county we live in and it is calculated purchase price minus trade in!
  • It varies by state but generally you will pay sales tax on the purchase price minus trade in. Down payments are still taxed. Reasoning is that you already paid sales tax on the trade when it was purchased new. Again, it varies widely by state tax codes.
  • Sales tax laws are different got each state. Check with your local tax division or likely your dealer can tell you. Good luck / skip
  • Well in Florida you do pay sales tax based on the county you live in. The tax is paid on the sales price minus trade-in value allowed. The amount of down payment has nothing to do with the taxable value. As far as battery tax or tire tax thats a new one on me. Are having new tires and batteries installed and the dealer is charging you the disposal fee?
  • Hi,

    States like California, the total tax is based on the county rate where the owner lives, and you pay sales tax on the total sales price, with no deductions.

    I have heard of dealers saying that in the state they came from, the sales tax was based on the difference between the total sales price less any trade in. So if you upgraded to a $120,000 RV and have a $90,000 trade in, in that state, you would only pay the sales tax on $30,000. I have no idea what state that is. If you had put down $10,000 in cash, you would still have to pay sales tax on the $30,000 difference between the trade in and new vehicle cost.

    If you don't want to pay the tire tax or battery tax, walk away from the deal. Your dealership probably has about $5,000 to $15,000 in profits built into your deal, and probably will offer to pay a nominal sales tax. My guess is the tire and battery tax can not be more than about $200 for the tires and $10 - $15 for the battery, if it is based on the tire and battery retail prices.

    You can tell them you are looking into buying a diesel pusher in Texas, and have seen some really nice units on a website, they will only charge the sales tax of your home state. That dealer knows how to change registration from the current owner to any state in the Union. You might want to google "Texas motorhome consignment" to get an idea of what is out there, before making those statements.

    Fred.