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Do you have to pay taxes when selling a car?

Answers.com > Wiki Answers > Categories > Cars & Vehicles > Car Selling > Do you have to pay taxes when selling a car?
Answer:


The taxes will be payed with the new owner because it is now his responsibillity
  • In virtually all states, the laws governing sales tax on vehicles is different than those on other items of personal property. For example, only sales from one registered auto dealer to another are exempt - and the normal exemption forms used between licensed sales tax vendors are not able to be used.The government does not ever want anyone to collect sales tax that isn't licensed to do so. It is highly illegal.
  • If it is not a registered auto dealer in the sale, the tax is collected by the authorities as part of the registration/titling fees paid by the new owner, to the MVD or MVC.
 
  • The govt. would like for you to but probably NO ONE DOES in a private sale.
   
  • You can't charge sales tax unless you have a business license. Don't know about other states, but in Kansas the new owner will pay the sales tax to the county treasurer when they register a car purchased from a private party.
  • If you are selling cars as a professional or a business owner/car dealer, then you are of course required to pay tax for that business. If you are a private seller, the tax that you would have to pay for is concerned with the legal process of turning the ownership rights.
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First answer by Johnbrent. Last edit by Collin Ferrante. Contributor trust: 1 [recommend contributorrecommended]. Question popularity: 242 [recommend question].

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