Smart Sales & Property Tax

[2009Aveo5]

I was talking to a friend tonight during dinner and he said New Hampshire schools were funded by alcohol and wine sales rather than property taxes...is that true?

Somehow that got brought up when I told him the five states without sales tax, and he went to Dartmouth and New Hampshire of course doesn't have state sales tax but has local taxes that you pay on cars and then they get you with other fees later...he said cars in one area is $18 per $1000 dollars of the retail price, which is not bad but then there are other fees down the line. Not that I was thinking of the criminal offense of tax evasion but its tax time and was part of the conversation.

I did a little research and there are five states without a state sales tax.

Oregon
New Hampshire
Alaska
Hawaii
Delaware

Well, I already know New Hampshire is one of the most expensive places to own a car fee/tax wise than most other states in the U.S. despite the no sales tax, however Oregon is suppose to be the least expensive with Alaska coming in second and Delaware a close third (yet three times more than Oregon and twice as much as Alaska). And if you are a resident of Alaska you get the oil check every year, so it pays to be a resident.

I'm just curious if what the actual costs is to own a car like the smart over the long term. There was a study done by ViNCENTRiC which is did a 2006 study yet it didn't include local taxes just state taxes. Some states have local and state taxes while some have one state tax.

I suppose it is an off topic form of conversation, but the claim that some are actually making a profit reselling the Smart car...I don't see it unless you live in a state which doesn't cost you much to register.

For a car like the Smart you are probably only talking a thousand or two difference between states, but a more expensive luxury car can be up in the tens of thousands.

The website is pretty interesting...several industry reports of cost of ownership for brands, hybrid versus gas ownership costs. And since I'm filing my taxes with great angst I thought I'd ask the question...what are you paying in your locality?

http://www.vincentric.com/Home/Indus...1/Default.aspx

[LinuxGuy]

Texas calls the tax on cars a "Use Tax". So, if you buy a car in a state like Arizona that does not charge sales tax on auto purchases, Texas can still tax you when you register it in Texas. Arizona does charge a tax on autos, but its a "property tax" and gets collected when you license the vehicle and upon renewal. As a result, license renewal in Arizona can cost $300-$500 or more a year.

The Texas "Use Tax" is 6.25%

[4-2NV]

Originally Posted by LinuxGuy

Texas calls the tax on cars a "Use Tax". So, if you buy a car in a state like Arizona that does not charge sales tax on auto purchases, Texas can still tax you when you register it in Texas. Arizona does charge a tax on autos, but its a "property tax" and gets collected when you license the vehicle and upon renewal. As a result, license renewal in Arizona can cost $300-$500 or more a year.

Here in Mass we have both a 5% sales tax on the intial purchase _and_ an annnul excise tax of $25 per $1,000 of decliniing values as set by the state. So, my sales tax was about $750 and my first excise tax bill will be about $360 based on the formula.

[Old smart]

Two different things in VA. The one-time sales tax is collected by the dealer and the DMV verifies that it was paid upon initial registration. That tax goes to the state. The property tax is collected yearly by the owner's local city or county government and stays with that local government.

[E-SMART]

I can remember the tax fee that was tied to the car value but for me (being a college student at the time) it wasn't that much as I had older cars.
NH also doesn't charge ANY sales tax on most items (as well as no state income tax) so a lot of folks from neighboring states go to their malls (hey, buying a $1,600 TV in NH would save you $132 if you're sales tax was 8.25%)

In IL it's a one-time fee BUT (not sure if it's this way in other states) the total tax is based on deducting any trade-in so you always have to figure how much more you might be able to sell it yourself versus the extra tax you'll save. In addition to the 6.75% state you also pay a county tax which was .75% but will be going up in Cook County (Chicago area).

I think many people on our forum may even have two residences (snow birds?) so would also have the luxury of seeing which state would offer the least overall tax and hassles (annual inspections, etc.).

Interesting thread none the least . . .

[Old smart]

Here in VA they'll getcha' anyway. If I bought a new car out-of-state with no sales tax paid and brought it to VA to register it, the VA DMV would collect their tax at the time of registration. If I initially paid tax out-of-state I'd be OK, unless I paid at a rate lower than VA. Then they would hook me for the difference. I don't know what happened some years ago when my wife and son brought two used cars in from MA; I was in the middle of the Indian Ocean at the time (DGar: Lat 07-16S, Lon 072-30E).

[4-2NV]

Originally Posted by Old smart

Here in VA they'll getcha' anyway. If I bought a new car out-of-state with no sales tax paid and brought it to VA to register it, the VA DMV would collect their tax at the time of registration. If I initially paid tax out-of-state I'd be OK, unless I paid at a rate lower than VA. Then they would hook me for the difference. I don't know what happened some years ago when my wife and son brought two used cars in from MA; I was in the middle of the Indian Ocean at the time (DGar: Lat 07-16S, Lon 072-30E).

Same deal here in Mass.-buy it in NH and they'll tax you in Mass when you register it.

[SLIVERS]

One more state without sales tax Montana.

[SmartAzz]

here in california we get taxed coming and going (without even any break with a trade in car). i certainly have done my part to support the economy and services supported by taxes that's for sure

[spdickey]

Oregon does not tax cars, much. $30 for two years license, no sales tax. The state makes it up with higher property taxes on real estate and gasoline taxes. But gas is cheaper there than California, and taxes here in California are all around much higher than Oregon. Go figure!