Sales tax breakdown help

[Rex3rd]

On my quest to learn as much as I can with purchasing a jt next year I'm really learning tons on here and other sources but some stuff I'm very confused at. Taxes is one of them and I'm litteraly confused an what my tax rate would be when I purchase which could leave me in a messed up spot. I've looked it up over and over and the more I look the more I'm confused, so can someone that's smarter than me answer this question for me...I live in Lincoln Alabama (Talladega county) and if next year I purchase a jt in Buford Georgia what will be my sales tax?. Thanks in advance! @steffen707 your a number savvy guy, any idea?

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[JTwantMe]

You will pay the sales tax for the state the vehicle will be registered in!

 

[Rex3rd]

You will pay the sales tax for the state the vehicle will be registered in!

Will I just pay for sales tax for alabama or will I have to pay taxes for the state the county and then city?

 

[Capt. B]

Will I just pay for sales tax for alabama or will I have to pay taxes for the state the county and then city?

Maybe all, depends if they have collection laws in place. In Tennessee the state get 6.25% and the county city get 1.5% each which means our effective tax rate is 9.25% for Tipton County TN.

 

[JTwantMe]

We pay sales tax on vehicle and a annual ad valorem tax

 

[Rex3rd]

Maybe all, depends if they have collection laws in place. In Tennessee the state get 6.25% and the county city get 1.5% each which means our effective tax rate is 9.25% for Tipton County TN.

From what I'm looking at Alabama plus combined with state and country is 10% which is pretty up there

 

[Capt. B]

Many states have some pretty hefty sales tax (9.25%) in my neck of the woods but, we don't have state income tax and that's the cat's meow!

 

[ShadowsPapa]

I feel pretty lucky. If you pay $55,000 for a JT and do not have a trade and that is the price they sell it for - for the TRUCK itself, then you pay 5% of that $55,000 in tax to the county it is registered in in Iowa.
If you make your deal, and the price is $55,000 but you have another vehicle worth $15,000 in trade, then you have ended up paying $40,000 for the truck PLUS your $15,000 trade - you have already paid the use tax for the trade-in vehicle is their logic, so you pay 5% of the 40,000.
In other words, you pay 5% of the cash price for your new vehicle - to the county in Iowa that it is registered in.
They collected 5% of the sale price of my JT at the dealership and sent that money to Polk County, IA and then the county registered it, etc. and sent the title and registration to the dealer - who then mailed it on to me. Goofy that they don't mail it directly to the person whose name it is registered in, but that's gov't.
After that, we simply pay the $422 a year registration fee.......
So you get socked 5% of the cash price of the vehicle, PLUS the registration fee/license fee which in my case is $422 annually, and then next year I get to pay the $422 again, and again.........
I prefer registering my cars - 25-35 a pop, depending on the age and so on. I think my Eagle is 35 and my Javelin 25 or something like that. My wife also pays over 400 bucks a year for her JGC license.
AND - we can deduct the 5% tax we paid on the new vehicle along with a percentage of the license fee on our income taxes. But the vehicle has to be a primary vehicle - so I can't deduct the license fees on my Javelin, Eagle, etc. as they aren't "necessary" or "primary".

 

[Renegade]

Maybe all, depends if they have collection laws in place. In Tennessee the state get 6.25% and the county city get 1.5% each which means our effective tax rate is 9.25% for Tipton County TN.

If your Tennessee vehicle is valued at over $3,000, you only pay 7%. I'm not sure exactly how that gets broken up, but I know it's 7% instead of the regular 9.25%.

 

[ALVagabond]

From what I'm looking at Alabama plus combined with state and country is 10% which is pretty up there

Last time i bought a vehicle outside Alabama, i paid 4% state taxes and 1.5% for my county. I don't think you pay the city of local sales tax unless you buy (or take delivery) in that city. Last time I looked at AL sales taxes, no where in the state had over 9% state + county.

 

[Gatorized]

Best to ask your local tax agent. Then you will know exactly what to expect. Some states even have this information on their web site. Google taxes on new vehicle purchase for your state.
In Maine they tax you on MSRP no matter how good a deal you get! You need to bring the window sticker with you when you register it.

 

[Capt. B]

7.25 is the state tax rate. Your county/city can charge more and most do.

 

[Klutch]

Just ask your local dealer. They do it every day and they know EXACTLY how much the taxes will be in your area.

Likely, they can also tell you how much the tag fees will be in your state. If not, go to your local DMV and ask. Calling will likely result in nothing more than futility; and that's if you can actually get someone to answer the phone.

 

[WillaHolland]

I wonder how your story with purchasing a jt ended? How much taxes did you pay in the end? I'm thinking of purhasing a jt too, and I'm studying all the possible aspects.

 

[RonuPualo]

I totally get the confusion with sales taxes. It can be a real headache. When I was trying to figure it out, I found that looking up the information online really helped. You can usually find details about sales tax rates on your state's official website or even by Googling "taxes on vehicle purchases" for your specific state. Additionally, there are online tools available that can help calculate income taxes and wages, which can provide some useful insights. I recently stumbled upon one of these tools, and you can check it out right here. BTW, it's great to connect with others who are also navigating the complex world of taxes.

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