Ridiculousness of Taxes on Autos in USA.

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Brew_Wallace@reddit

Two things I hate the most, taxes and potholes. Why can’t we get rid of them?!

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danny_ish@reddit

I live in SC. We dont really have potholes. But I pay 30% more for my car taxes then I did in NY

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Account14159@reddit

I live in NY, and have always heard our taxes (particularly in Erie County) are among the very worst of anywhere in the entire country. How on Earth can anywhere be significantly more?!

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danny_ish@reddit

Im from long island. Property taxes are insane, but the car taxes were not. But we did have the annual inspections in ny that we dont here in sc

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grubas@reddit

Listen, the inspection doesn't do MUCH but states without ones get INTERESTING.

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danny_ish@reddit

No it does a lot. Been a mechanic in states with and without. The ones without genuinely scare me sometimes

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buzzboy7@reddit

You can tell when you cross from nc to sc because the roads get worse. NC has more gas tax.

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danny_ish@reddit

I live by the georgia boarder (augusta) and its the opposite here, ga has the terrible roads lol

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Any_Sale2030@reddit

Easy. Make all roads toll roads. Solved for you.

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BackwerdsMan@reddit

That's just a pay per mile system. Just wait til you hear the anti-tax people's opinion on that. Lol

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Cynyr36@reddit

So who pays to maintain a road then? House elves?

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Correct. They want everything paid for and they don't wanna pay for it. This is why they constantly say the problem is "waste" no matter how much data you show them that states, counties, and cities have been losing tax revenue for years with inflation and economic challenges.

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Dancelvr2000@reddit (OP)

Yes and no. How do states like Florida and Texas etc. do it with no State Income Tax?

How does Montana do without sales tax on vehicles?

Florida just got rid of almost all sales tax on commercial properties and rentals.

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BackwerdsMan@reddit

Florida is also generally a shithole unless you're wealthy.

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Cynyr36@reddit

By having regressive sales taxes.

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Brew_Wallace@reddit

Imagine the toll is paid when you buy your car

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Dancelvr2000@reddit (OP)

Yeah don’t get me started on that.

Express lanes that are tolls, but you lose 2 lanes that are without tolls?

And you already pay for the road with taxes.

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sweetrobna@reddit

Sales tax is regressive. But it's politically easier to pass, most people see it as more fair, you spend more money you pay more in tax.

How do you think it should work instead?

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Dancelvr2000@reddit (OP)

I don’t think the same item should be subject to tax every time it is sold.

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sweetrobna@reddit

Sure. How do you make up this tax revenue?

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the_lamou@reddit

As opposed to everywhere else in the world where you think sales taxes aren't a thing?

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Dancelvr2000@reddit (OP)

It’s a thing on registered assets because can be tracked.

You think people should pay sales tax multiple times on bicycles?

Clothes?

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xblackout_@reddit

Based, these are bots/gov shills

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SuperAwesomeBrian@reddit

You pay sales tax if you buy a used item…

I don’t think your argument is working out as well as you think it is.

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BZJGTO@reddit

You don't pay sales tax on goods purchased from an individual, but you do on a car.

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Dancelvr2000@reddit (OP)

That was entire point of post.

Don’t think sales tax should be paid potentially x5 on same auto every time sold. Unless in Montana.

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the_lamou@reddit

Don’t think sales tax should be paid potentially x5 on same auto every time sold

Why not? The shares tax is paid on a transaction, not on the item being transacted.

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SuperAwesomeBrian@reddit

Deep down, your actual complaint is just you don’t like taxes.

What is your opinion on a pawn shop? Their entire business model is used items. Should they just be exempt from taxes? The answer is no, their business still has economic impacts and participating in the economy involves taxes to support the society that enables it. What metric other than sales should be used to determine the taxes they should pay.

Extend that to every exchange of a used item. You pay a sales tax.

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Dancelvr2000@reddit (OP)

Good points.

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manosiosis@reddit

You keep bringing up Montana. But there are lots of states that don't have sales tax, including montana. This isn't a car sale thing, this is just a sales tax thing.

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the_lamou@reddit

No, sales tax on a thing is just a tax on a transaction. And then annually you pay registration, which is a property tax and also exists everywhere. And yes, I think you should pay taxes on your car as long as you drive it, seeing as how you keep driving it on public roads that rely on public services that are paid for with... taxes.

Don't like taxes? Great! You're welcome to move to Somalia or somewhere else where taxes aren't a thing and compare your quality of life.

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cbear013@reddit

Do you think you don't pay sales tax at a thrift store?

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xblackout_@reddit

Not just sales tax retard, bootlicker

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Ran4@reddit

Almost all other places… taxes on used cars is absurd

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the_lamou@reddit

Sales taxes do not tax the thing you are selling, they tax transactions. Any time money is exchanged for goods or services, there is usually a sales tax. Why would used cars be an exception? Also, where are these magical places where used car sales aren't taxed?

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NoteFuture7522@reddit

Only end users pay sales taxes. For example businesses do not pay taxes on raw materials they buy.

The other predominant consumption tax model is the value added tax used in Europe. That is paid at every stage of the production process but only on the value added at each stage. It is not paid on private party car sales since the seller did not add any value to the product being sold.

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LevoiHook@reddit

I dont know, not of i sell my car as an individual to another individuel. But maybe OP is talking about buying from the dealer?

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TurkishSwag@reddit

In the US? You definitely pay taxes from individual to individual. If you buy a car for $5k, you’ll have to pay sales tax on that when you register at the DMV.

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IMA_5-STAR_MAN@reddit

I've never once paid taxes at the dmv. My "uncle" or "cousin" always gifts me the car as a "thank you." they don't care.

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Foxwglocks@reddit

Idk where you’re at but they closed that loophole here in Florida. I “gifted” several cars and motorcycles back in the day to avoid the tax.

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IMA_5-STAR_MAN@reddit

So what taxes do you pay on free cars? They just look up kbb and tax you?

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the_lamou@reddit

Yes. Well, sort of. They have a registry of vehicles and how much they should be worth.

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Foxwglocks@reddit

I’m not sure with cars that are actually free. I tried to sell a motorcycle a few years ago and they made me claim at least $1. So I guess I paid 7 cents. Free? Haha

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TheRealRockyRococo@reddit

PA also.

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Dancelvr2000@reddit (OP)

From dealer that doesn’t work.

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lique_madique@reddit

Not in all states. AZ doesn’t charge tax on any car purchased used from an individual regardless of what state you purchase the car from.

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S7alker@reddit

DMV collects on the registration from new owner

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Drzhivago138@reddit

Do you have a better alternative? Let's hear it.

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Dancelvr2000@reddit (OP)

Cut out spending waste and corruption.

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Ran4@reddit

The government is already fairly efficient when it comes to output per dollar. Please educate yourself

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Drzhivago138@reddit

In what ways? Be specific!

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firstthrowaway9876@reddit

We generally can't. Because truth be told private corruption are also full of corruption and waste. But generally speaking it seems that publically funded and run government services are better than publically funded privately ran services. I think that just because it's easier to hold someone responsible to the taxpayer than it is to expect a shareholder to do better for your community.

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Potential4752@reddit

Sales tax I get. Property tax on a depreciating asset is insane to me.

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Ran4@reddit

It is not a property tax it is to cover roads etc

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argumentinvalid@reddit

i just paid 900 to license my car for the year.

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7w4773r@reddit

lol go look at car purchases taxes in Scandinavia. In Denmark you can pay over 100% the value of the car in purchase taxes at time of purchase.

American car taxes are absurdly low compared to the rest of the world.

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lique_madique@reddit

Not everywhere, just most places. In AZ where I’m from there is no sales tax on used cars purchased private party. Registration is based on the original listed MSRP of the vehicle depreciated every year so older cars are dirt cheap to register. My Ferrari is like $200 a year to register and I purchased it from a private party in CA and didn’t pay taxes.

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Dancelvr2000@reddit (OP)

Interesting.

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Speedy_SpeedBoi@reddit

Lol - It is worse in states with value based registration. I love paying hundreds or thousands extra to register a depreciating asset just because it is valued high atm.

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Nancy6651@reddit

That's how it is in Arizona, where we live. When we moved here, all of our cars were old, so registration was reasonable. Now we have much newer, and more luxurious, cars. You drop your teeth the first time, then get over it.

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lique_madique@reddit

There’s good and bads to that. My raptor was eye watering to register but my Ferrari was like $200 for the year to register. You win some, you loose some.

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trouthunter8@reddit

The roads we drive on cost about $2 million per mile to build and $20,000 per mile per year to maintain... That ain't free.

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creep_nu@reddit

Come to Virginia and pay taxes annually for the simple fact that you can a vehicle

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I_amnotanonion@reddit

Yeah, it sucks. We’ve only got 1 newer car (and it’s 6 years old at that), so we pay a couple hundred bucks for it yearly. Our other 2 cars are much older (1998, 1979), so we pay a combined total of about $25 a year for them

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HLef@reddit

I too can a vehicle.

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creep_nu@reddit

Lol, own, but imma leave it

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HLef@reddit

You accidentally a word. Happens to the best us.

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byebybuy@reddit

You toucan a vehicle?

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insomniaczombiex@reddit

Try living in Connecticut. Sales tax when you buy it, and property tax twice a year that fluctuates depending on what town you live in.

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Draco-REX@reddit

Many states have an Excise tax where you pay a tax yearly on the value of the car adjusted for age.

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PcarDriver@reddit

This is very state dependent. I lived in California for most of my life and then moved to Florida.

When I move my family Dodge Durango that was a few years old was up for renewal and it was $580 to renew the registration. Chaging the registration over to Florida was a one time initial fee of $300 and then it was $48 ever year for the renewal.

The roads at least where I live in central Florida are much better maintained than where I lived in California (I have lived up and down the coast and in the Central Valley and most of the major roads are pretty bad).

The big difference is the number of toll roads, but Florida does give toll relief if you drive the roads often giving you a credit on later tolls. Because of this most of the tolls are payed by tourists. Florida has an advantage in the amount of tourists that most states don’t have, so I know that doesn’t completely work for every place. However, it does show how state dependent this is.

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ezagreb@reddit

It is. Its greedy, on the part of state and local governments on something people require to live and work. Why not tax boats and planes and other luxury goods

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psaux_grep@reddit

I mean, if you think that’s bad - buy a fossil car in Norway anytime between the 50’s and now for a nice little 100% tax (or more), because why not?

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evileagle@reddit

In WA you pay it when you register the new-to-you-used vehicle as a use tax, not a sales tax.

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Neglected_Martian@reddit

That is why they call it a SALES tax though.

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DFLDrew@reddit

Almost everywhere you pay taxes on net (California is gross). That means the sales tax is not in fact paid 5x over.

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Drzhivago138@reddit

Do you have a better alternative?

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obi_wan_keblowme@reddit

In Wisconsin, you pay half the sales tax amount again when you remove a non-relative from the title. I have no idea why besides it’s an easy way to charge tax again. It’s pretty dumb but I guess what can you do about it.

The weirdest part is when the now-sole owner of the vehicle gets a letter from the DOR about the suspiciously low sales tax collected on the “sale.” Then they have to prove that the sales tax paid was correct based on the “sale” price during the ownership change. Like wtf, it was never a sale in the first place!

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