Just paid the taxes on my car, but here in Texas they have changed over to a a system of charging you tax on what the ERV or Estimated retail value of the car is. So I searched and searched for a good deal on a car and end up paying 86 dollars more in taxes because of it! The car didn't even run right (no starter) when I bought it. How can it be worth a retail price without a starter?
Just a rant, I will stop now.
Out of curiosity though, have any of you run into this recently in your state? Is it just a Texas thing or is this happening everywhere?
Ontario will do that if the receipt seems too low. Pretty subjective. They also contact some vendors to confirm what they sold the car for in case the receipt is for a lower value to save on paying the tax for registration purposes.
Paying sales tax for a used vehicle struck me as really odd the first time I had to do it. In the Netherlands and as far as i know in most other European countries as well, the person that buys the car new pays sales tax to the government and that's it. Why pay salestax on the same itme over and over again that the sales tax has already been paid for?
And then it seems somewhat arbitrary as a system as well, or is it just because car sales can be checked, because if I buy an old couch from someone, should I pay the local state sales tax?