Sales tax on RV purchase

Michigan is currently voting on this. Currently you pay sales tax on the entire value of the rv BEFORE trade-in. They are thinking of changing it so you get credit for your trade-in and pay tax on that amount. They are going to start it with $2,000 and increase the trade-in allowance by $500 per year --- if it passes.

Golden_HVAC wrote:
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.

Wow, what an oppressive tax structure. You get to pay twice on the same money. Most states require you to pay sales tax on the difference between the trade in and the new vehicle.

Well, I live in Oregon and there is 0 sales tax!! :)

Tire tax, battery tax, closing cost, and what ever else those crooks at that dealer can think of, are all rip-off scams! Why would you want to buy from crooks like that? The sells tax is the only one that is an honest state tax!

I live in Orlando and play by Florida rules. Pay NO ATTENTION to anybody telling you about what they did in some other state.

I just Googled "Florida Motor Vehicle Sales Tax" and got the State of Florida, Department of Revenue web site.

You pay the state 6% on the sales price less the trade in value. You also pay any County Additional Tax (1/2 percent in Orange County; 1 percent in Seminole; etc.) on the first $5,000 of purchase (ONLY).

All of this is clearly spelled out on the DOR site.

I have purchased three fivers in Central Florida in the last ten years and have never paid any "Tire" or "Battery" tax. I'm not sure what the dealer is trying to pull there unless. as someone mentioned, you have some tires or batteries replaced before delivery and there is a recycling or disposal charge on the old ones,

A

Laman wrote:
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?

This is the way we've bought 4 MoHo's in Fl.

skipnchar wrote:
Sales tax laws are different got each state. Check with your local tax division or likely your dealer can tell you. Good luck / skip

+1

We bought our 2013 TT in NC where there was a %3 sales tax, but they kill you with property taxes. We bought a home in Florida and moved so we have to wait until the TT is 6 months old and re-register it in Florida with only a title transfer is involved. No "impact fee"as our previous TT was registered in Florida and I have a tag already. Got notified that I couldn't get a tag on my Ram unless I paid a $225
tax. Ignored it as I have a Fl tag already.

In every state, including Florida, taxes on new vehicle purchases are mandated by the legislature. Where the dealer is charged with the tax collection responsibility at delivery, the dealer is regularly audited and held to a very high standard with loss of sales license as ultimate punishment. The dealer is highly unlikely in these circumstances to charge any non-legitimate taxes and these taxes are not negotiable.

A "Closing Fee" or "Documentary Fee" is not a legislated charge and is a dealer option. In many states this charge is limited in amount by law but is not regulated in Florida. I have seen dealer charges anywhere from zero up to $1595. This is a negotiable fee with the dealer and is simply additional profit to the dealer to offset clerical duties that have to be done.

Also in NY there is no battery tax but you do pay a tire disposal fee. $4.00 per tire.