Is private vehicle sales tax the same as retail?

[Duncan]

Just went thru this myself..I bought a beater for $500, i even had the bill of sale notarized. They didnt even want to look at the bill of sale, a couple of minutes later i paid $207 in taxes on a $500 car. Was not pleased.

[SEB]

I just paid $172.50 to register a truck I paid $1,000 for. That's fair!!! In the state's defense now that it's fixed I can probably get $3,500 for it, and whomever buys it will get to pay that $172.50 again.

I think its a crock you pay taxes on a car that has already had the taxes paid on it when it was new.

[KBScobravert]

I think its a crock you pay taxes on a car that has already had the taxes paid on it when it was new.

The only rational way I can justify it is by saying "you are paying taxes on the amount of money the state says you spent". So basically if you "spend" money in Texas they want their cut no matter what the product is. They just seem to be able to use vehicle title transfer/registration as their ticket into your wallet.

[mustangguy289]

I think its a crock you pay taxes on a car that has already had the taxes paid on it when it was new.

Or that you can not get a discount on the taxes from selling your own like you do when you trade it in. It is a scam but we all put up with it.

[SEB]

Tax on a used car is nothing more then Uncle Sam being a BULLY! I am pretty sure when I upgrade to better equipment the new buyer doesnt have to pay tax on the equipment I sale him. But Uncle Sam has his hand in the cookie jar to much in this country. This is a prime example of it. Regardless of Uncle Sam being State or Federal or Local for that matter.