Understanding Car Advertising

SALES TAX, USE TAX AND M.V. FEES
IN AUTOMOBILE ADVETISING

SALES TAX, USE TAX AND M.V. FEES
ARE NOT INCLUDED IN ANY FORM
OF ADVERTISING AT ANY TIME

SALES TAX IS CHARGED ON
VEHICLE PURCHASES
 AND
USE TAX IS CHARGED ON
VEHICLE LEASES

SALES TAX IS CHARGED ON THE
SELLING PRICE OF THE VEHICLE
BEFORE REBATES ARE SUBTRACTED

MOST STATES ALLOW A TAX
CREDIT FOR VEHICLE TRADE-INS

AND AS SUCH THE TAX IS
CALCULATED ON THE SELLING
PRICE OF THE VEHICLE BEFORE
REBATES
ARE SUBTRACTED
AND
AFTER THE TRADE-IN VALUE IS
SUBTRACTED.

YOU PAY SALES TAX ONLY
ON THE DIFFERENCE BETWEEN

THE PRICE OF THE NEWER VEHICLE
 AND THE ONE YOU ARE TRADING
INTO THE CAR DEALER.

USE TAX ON A LEASE HAS BEEN VERY
DIFFERENT FROM STATE TO STATE.
EACH STATE MADE UP A DIFFERENT
LAW TO COMPUTE USE TAX.
UNFORTUNATELY, LAWMAKERS
MADE LAWS THAT TAXED A LEASE
DIFFERENT IN ALMOST EVERY
STATE IN THE USA.

RECENTLY,
THE FEDERAL GOVERNMENT
PROPOSED STANDARDIZE USE TAX
CALCULATION FOR ALL 50 STATES.

AS OF THIS WRITING,
40 STATES HAVE NOW ADOPTED
THIS METHOD.

THIS NEW METHOD TAXES THE
MONTHLY PAYMENT INCLUDING
THE INTEREST IN THE PAYMENT.
PLUS DOWN PAYMENT MONEY,
FACTORY REBATES,
BANK AQUISTION FEE AND
DEALERSHIP DOCUMENTARY FEES.

THIS NEW METHOD IS FAR BETTER
 THAN WHAT MANY STATES WERE
TAXING AND A SLIGHTLY WORSE
METHOD FOR SOME OTHER STATES. 
OVERALL, IT IS A VERY GOOD
CHANGE FOR THE BETTER.

SALES TAX, USE TAX AND M.V. FEES
ARE COLLECTED BY THE STATE
AT THE TIME OF REGISTRATION. 

MOTOR VEHICLE FEES INCLUDE:
 TITLE FEE, LIEN FEE (IF FINANCED)
REGISTRATION FEE, HARD METAL
PLATES, TIRE FEES, BATTERY FEES. 
ALL CHARGES ARE BY THE STATE
DIVISION OF MOTORS VEHICLES.



 
 
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