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-   -   California State Tax Laws? (http://www.jeepgarage.org/f73/california-state-tax-laws-21748.html)

joebinotto 04-13-2011 05:22 PM

California State Tax Laws?
 
I am relatively new to the State of California & assumed that my trade-in would reduce the purchase price subjected to sales tax (like all the other 49 states). Someone told me today that isn't how it works here. Any Californians confirm this either way? Thanks.

silver04 04-13-2011 06:19 PM

Re: California State Tax Laws?
 
its not just California, but yes you are taxed on the full amount before trade and any cash back offers. Sucks

joebinotto 04-13-2011 07:56 PM

Re: California State Tax Laws?
 
Thanks.

slampert 04-13-2011 08:36 PM

Re: California State Tax Laws?
 
Consider this double confirmation. No offset.

9.75% here in LA is a chunk !

joebinotto 04-14-2011 12:52 AM

Re: California State Tax Laws?
 
Yep, not even my former state NY is that greedy. I was in total disbelief when my coworkers told me to expect sales tax on the gross purchase price. That's double taxation!

Sid Fields 04-14-2011 01:23 AM

Re: California State Tax Laws?
 
Quote:

Originally Posted by silver04 (Post 395445)
its not just California, but yes you are taxed on the full amount before trade and any cash back offers. Sucks

Wait. Wait. I just asked my sales guy in Maryland the same question today and he said it reduces the cost of the purcahse price and can save some tax cost.
I'll bet your right Silver04. To paraphrase my sales guy. "You always know more about this car than I do because of that Internet thing."
I should know for sure this weekend.

Nouveau Redneck 04-14-2011 09:56 AM

Re: California State Tax Laws?
 
The value of the trade-in is definitely deducted form the purchase price of the new vehicle before sales tax is calculated here in Pennsylvania.

RAO-3 04-14-2011 10:01 AM

Re: California State Tax Laws?
 
Same in NJ

tbechtel 04-14-2011 10:10 AM

Re: California State Tax Laws?
 
CA is a welfare state and taxes just about everything thing you do. You will be taxed on the full purchase price after trade-in and wait until you see what those license plates cost you. In the Bay Area my Jeep sales and license fees added almost 5K to the price of the vehicle.

jmpdev2020 04-14-2011 10:13 AM

Re: California State Tax Laws?
 
Quote:

Originally Posted by joebinotto (Post 395406)
I am relatively new to the State of California & assumed that my trade-in would reduce the purchase price subjected to sales tax (like all the other 49 states). Someone told me today that isn't how it works here. Any Californians confirm this either way? Thanks.

No sales tax charged in delaware last time I checked.

nek121328 04-14-2011 10:55 AM

Re: California State Tax Laws?
 
NH & ME only tax on the difference

RRER 04-14-2011 11:29 AM

Re: California State Tax Laws?
 
NE only taxes the difference, but only if done at a dealer in one deal. You can't sell your old car yourself, buy a new one, and get a credit for the sale of the old one (there are some states, MO I believe, where you can do this by filling out an affadavit form).


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