Talk about an unabashed regressive tax, here's how car sales tax works in SC:

[raccoon]

“A maximum sales tax of $300 is imposed on the purchase of motor vehicles, including recreational vehicles, boats, motorcycles and airplanes.”

So, if you buy a new Toyota/Ford, you’ll pay the same sales tax as the person who buys a Jaguar or Mercedes Benz.

http://www.sctax.org/Publications/mov2sc.html

What a nice tax break for the affluent.

What's the skinny in your state?

[TheCowsCameHome]

1. At least there's a reasonable cap.

I don't think there's a ceiling in MA.

[FormerDittoHead]

4. I don't think you get the "regressive" thing.

One of my pet peeves is people's ignorance about how the rich pay a LOWER PERCENTAGE of taxes than the poor.

Poor: buy a $6,000 car, pay $300 = 5% tax

Rich: buy a Benz @ $300,000 (and I've seen them for more than that) pay $300 = 1/10th of 1%.

The rate should have a FLOOR (e.g.: first $5,000 = no tax)

But to have ANY ceiling is REGRESSIVE.

[TheCowsCameHome]

6. The tax is one thing that keeps me from buying a new(er)vehicle.

I'll be damned if I'll pay almost $2,000 tax on a 30K vehicle. I'd burn the money first.

$300 and I might be more apt to spring for one.

[uncle ray]

20. how much is the sales tax in your state on a 30k used car?

[SoCalDem]

24. In Calif it would be $2,625.00.. n/t

[TheCowsCameHome]

26. $1875,

And I refuse to consider paying that much.

[uncle ray]

35. so the other thing keeping you from buying a 30k car,

is the fact that you're not in the market for a 30k car.

either that or you're a tax cheat.

[TheCowsCameHome]

37. No way will I throw away that much money in taxes on a damn car.

I'll drive older vehicles before I pay out that much money for nothing.

If you've got $$$ to burn, more power to you.

[Angleae]

34. $2580 Everett WA

Varies slightly depending on local tax rates (bare minimum in WA is $2100, maximum is $2670)

[DAMANgoldberg]

49. NC/SC

Mecklenburg County NC = (4%) $1200 + $35 CATS + $30 INSP + $45 DMV + 1.225% PPTax
York County SC (across border) = $300 + $0 CATS + $0 INSP + $25 DMV + 0.750 PPTax
other suburban NC counties has no CATS (Charlotte Area Transit System) Fees, South Carolina no longer has vehicle inspections.

[hfojvt]

25. why? you pay the same amount of tax on any other purchases

anything else you spend $30,000 on, say over 5 years, and you are gonna pay that same amount of tax. Why should a car be an exception just because it comes in one fell swoop. Especially considering that such an exception would just be a break for the rich people who can afford $30,000 cars. Hey, that's only $5,000 less than I paid for my house.

[TheCowsCameHome]

28. And $30K is high-end these days?

Where have you been living?

[hfojvt]

33. some place where I paid $3500 for my 16 year old used car.

that's okay though, right. I should pay full sales tax on my car while you pay the same amount on your car that costs ten times as much. That's fair, right?

[TheCowsCameHome]

36. Just so you know,

currently the most "expensive" vehicle I own is worth about $5,500.

I said I wouldn't pay $1,875 tax on a 30K vehicle even IF I could afford it. It's a deal-breaker in itself, as far as I'm concerned.

[hfojvt]

42. for me, though, the $30,000 price is much more of a deal breaker

What is the difference between a $30,000 car with $1,875 tax on it, versus a $32,000 car? Is it more annoying to pay $1900 to the state or $1900 to an auto company? And what about the interest and insurance that you pay on such a vehicle? I tend to hate insurance companies more than I hate the state government. At least with the government I get roads, libraries, fire departments and schools for my money.

My question is, who is the state gonna serve and cater to - the majority, or the upper 30% who can afford $30,000 cars?

[inna]

41. +1,000! "But to have ANY ceiling is REGRESSIVE." -- EXACTLY.

That includes the FICA/SS tax, BTW (the fact that, much to my amazement, escapes many - if not most - people).

[Greyhound]

14. The cap makes it worse, another instance of the rich paying far less than the rest of us. n/t

[CanonRay]

2. No maximum in Colorado

and the plates on a Jag would be more than a Toyota.

[LiberalFighter]

3. So anything over $6,000 is tax free.

They should at least have the tax on the whole amount. If they don't need the revenue then they should reduce the sales tax on vehicles.

[Obamanaut]

5. Do they make up for it with personal property tax on vehicles?

From the OP link: "Personal property tax is collected annually on cars, trucks, motorcycles, recreational vehicles, boats and airplanes, based on their fair market value."

A Ford owner would most likely pay less personal property tax than the Mercedes owner.

[raccoon]

7. I see what you mean; possibly, to some extent.

I still think the $300 cap is doubleplusungood.

[Skink]

8. They should do it by weight.

Hummer 1000. Pinto 100.

[MercutioATC]

12. Average minivan, 3900 pounds. Ferrari F430, 2400 pounds.

Still want to tax by weight?

[Jeff In Milwaukee]

17. How much would Kevin Smith pay?

Sorry. Coudln't resist.

[Kingofalldems]

9. As someone has posted before--the South is ruled by aristocrats

[crazyjoe]

10. that's not fair...... and i'm buying my next new car in SC.

[Jeff In Milwaukee]

18. Careful Now....

Many states have laws that will require you to pay sales tax in the state where the car is titled if you purchase it out-of-state. So you might end up paying the SC sales tax AND the sales tax from the state where you live.

There in place to specifically prevent what you're contemplating.

[tammywammy]

21. In Texas, and I'm not sure if this is the same in every state

If you purchase a vehicle here to be registered in another state, you only pay sales tax in the registering state. So if you buy a car here to be registered in SC you'd only pay the sales tax in SC, not in Texas. I would think it's the same for every state, you wouldn't pay the sales tax twice on one purchase.

[Jeff In Milwaukee]

22. Don't be so sure....

In-State auto dealers don't want you jumping the border to buy where the taxes are lower. I can tell you for certain that this used to be the law in Pennsylvania. Purchase a car across the border, and you'd pay PA sales tax at the time you license it.

[tammywammy]

23. Right, when the vehicle is registered you pay taxes

If you purchase in Texas but are registering in another state you're charged no sales tax on the purchase, you pay the sales tax in the state you're registering it.

If someone from PA purchased a vehicle in Texas, they'd only pay the tax when they registered the vehicle in PA not in Texas and PA.

[Jeff In Milwaukee]

27. I find that a little hard to believe, frankly....

I can't imagine someone in the Texas State Assembly offering to let somebody off the hook for a purchase made in Texas -- and then allowing another state (which may or may not reciprocate) to collect the sales tax.

From my own experience, I was relocated for one year to a job in PA and bought a car in Ohio the month before the new assignment came through. When I went to get PA plates put on my car (it was unclear when -- or if -- I would return to Ohio), I was told that I had to pay PA sales tax because the purchase was within six months. No credit for the Ohio sales tax I had already paid.

Needless to say, I kept my Ohio plates until the end of the assignment.

[tammywammy]

31. I worked in a car dealership for many years, you may find it hard to believe

But that's the truth in Texas. You pay sales tax in the state where it's registered.

[Nicole]

32. Works that way here too

* Excise tax is collected at the time of issuance of the new Oklahoma title.
* Oklahoma residents are subject to Oklahoma excise tax on vehicles purchased in another state.
* Nonresidents who purchase vehicles in Oklahoma are not assessed Oklahoma excise tax, provided they title and register the vehicle in their state of residence.


http://www.tax.ok.gov/mv3.html

[Angleae]

46. I've personally been asked this bye the WA DMV

I've registered two vehicles that were previously registered from out of state. The first question they asked was do you have proof that you paid sales tax somewhere and they wanted proof. If I didn't have that proof, they would have just added the tax onto the registration cost.

[Jeff In Milwaukee]

48. Quick Answer to all three response - I stand corrected

Texas does provide this, and there are states that really do avoid double taxation.

But it's on a state-by-state basis. You results may vary, depending on where you live.

And with the economy hammering state budgets, I wouldn't be surprised if states start soaking out-of-state car buyers as a way to generate revenue.

[TheCowsCameHome]

29. True.

Otherwise everyone around here would be buying in tax free New Hampshire.

You pay when and where the car is registered.

[OneTenthofOnePercent]

40. What if you are not registering the vehicle?

Technically, a vehicle for private use does not have to be registered.
One could buy the vehicle for a ranch or onsite fleet use.
No tax is paid whatsoever?

Many construction companies do this. "Yard trucks" are not registered or insured and require no driver license to operate.

[blindpig]

11. What about SC ain't regressive?

I doubt that any other state is so consistently reactionary in all aspects of the law and regulation. SC was founded for the purpose of making the rich richer and things haven't changed that much in 350 years.

[Greyhound]

13. This is worse than most, in my experience. Many western states simply have

a flat fee for vehicle registration.

[DainBramaged]

15. In NJ EVERY time that car is sold it gets hit wih 7% sales tax

until it's junked.

[TheCowsCameHome]

19. That's what needs to be corrected.

Tax should only be levied on the initial sale, and even then it's too much.

[951-Riverside]

16. "What a nice tax break for the affluent."

SC has a 4% sales tax and only charges a maximum sales tax of $300. Yet in "Liberal" and "Progressive" California, sales tax range from 8.75% to 10.75%. If I purchased a $20,000 vehicle I would end up paying $2,468.00 after sales tax and registration on top of that this "Progressive" state charges a $25 EWaste fee on all TV's 35 inches or more yet the state is STILL BROKE. :mad:

In California you can't afford to be affluent anymore.

[dysfunctional press]

39. "..charges a $25 EWaste fee on all TV's 35 inches or more yet the state is STILL BROKE."

so- you somehow feel that a $25 e-waste fee on big tv's should be able to close all the budget gaps...? :crazy:

[951-Riverside]

45. My point is California taxes the hell out of everything and fails miserably to keep a budget

then they have the nerve to ask for MORE.

[dysfunctional press]

47. it's a state full of people who want a lot of services...but don't want to pay for them.

ballot propositions are a bitch.
and apparently a pretty shitty way to run a state. :shrug:

[ThomWV]

30. Personal Property tax required for licensing - every single year - based loosely on NADA value

[Contrary1]

38. 7% sales tax in Indiana

Collected by the dealer and sent to the state. If purchased from a private owner, the tax is paid when the vehicle is registered.

Then there is the excise tax...

[inna]

43. Incredible. The wealthy always get a break, while the social services are being slashed in nearly

every state. :mad:

[jmowreader]

44. Worse than you stated...

Should read:

So, if you buy a new Toyota/Ford, you'll pay the same sales tax as the person who buys a Learjet or Hatteras yacht.

Just think: you'll pay $300 sales tax on this...

http://www.hatterasyachts.com/Page.aspx/pageId/11570/pmid/146022/100-Motor-Yacht.aspx

Price? "On request." (Which goes without saying when you're dealing with customized products like 100-foot yachts, but if your bank balance doesn't have nine figures before the decimal point we recommend shopping at the local bass boat dealer.)