Quote:
Originally Posted by cpconst
What's even a bigger piece of bull is that you only save the tax difference when you trade your car in on a new car. If you buy used and trade in your car you are taxed on the entire amount of the car you're buying. I want to know who is the brilliant one that came up with this. They'll tell you it's an incentive to but a new car right? So you can tax a used car indefinatly as long as it has any value. I'm done venting.
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This leads to a gripe of mine - repeated collection of sales taxes on the same item. If I buy a used car for $10K and dutifully run straight to the DMV and register it in my name I am charged 8% sales tax. Then, if I sell it the very next day for what I paid for it and the new owner also does their civic duty by immediately registering it they are also charged 8% sales tax. Rinse and repeat for the life of the vehicle. And of course it was taxed when first sold as well. Remember, it's not unusual for a car to change hands ten or more times during its lifetime.
If I had more gumption, living in an Initiative and Referendum state I'd craft a bill and collect the signatures necessary to get an item on the ballot saying something to the effect that the state may collect sales tax on a vehicle one time and one time only: either upon initial sale as a new car or when a car first enters (and is registered in) this state from another.
For those who would argue that it's really a use tax and not a sales tax I remind them that no less an authority than the great State of Colorado calls it a sales tax and that, further, it is the annual registration fees that are the use tax/fees.
I've mentioned this to scores of people over the years, all of whom have said without hesitation that they'd sign such a petition if asked.