Texas taxes

[K0LCB]

Does anyone know for sure if sales taxes have to be paid on used trailer purchased from an individual?
Thanks

[ChasWray]

I would assume so. They are paid on a used car with an individual purchase. The tax is due when you transfer the title.

[txcpl]

CWRAY is correct.

[txcpl]

State Tax is 6.25%. Then of course the various fees and such.

[powerboatr]

yes.. plus a bridge tax, local municipality tax and tag fee to register it.

[aknavy]

When buying from individuals, sales tax is due on the sale price. I usually pay ridiculously low prices when I buy from a private person.....

[busyguy]

I think you pay sales tax based on the value of the vehicle or trailer you bought. Not what you paid for it.
This changed a few years ago when I still lived in Texas.
You can't buy a 10,000 dollar trailer and then say you only paid a 1.000 for it and pay the sales tax on the 1,000 price. The tax office will check what the unit is worth and you will pay tax based on that price.
Just check with the tax office. Best bet.
Busyguy

[Parks]

I would imagine you'd pay when you register it. I would ask the seller to write up a "receipt" with a very low purchase price on it to keep your sales tax low.

[McRod]

Yes, you have to pay taxes on used RVs purchased fron individuals. You cant skate by showing a reduculous $1 ppurchase price, as the value is determined by the DMV when you register it. Keeps those less than honest people from not paying their fair share.

[Mudfrog]

Originally Posted by McRod

Yes, you have to pay taxes on used RVs purchased fron individuals. You cant skate by showing a reduculous $1 ppurchase price, as the value is determined by the DMV when you register it. Keeps those less than honest people from not paying their fair share.

I agree that we all need to pay our fair share. What i don't agree with is why we have to pay taxes more than once on a vehicle. Someone pays taxes on it when new, then someone buys it from them used and pays taxes again, and then more taxes if it's sold again,, and so on.

This from the Txdmv website:

Texans who buy a used vehicle from anyone other than a licensed vehicle dealer are required to pay motor vehicle sales tax of 6.25 percent on the purchase price or standard presumptive value (SPV), whichever is the highest value.
SPV applies wherever you buy the vehicle, in Texas or out of state. A vehicle's SPV is its worth based on similar sales in the Texas region. The Texas Legislature passed the law in 2009 to raise additional revenue to fund Texas schools. Black Book, the national guide that provides the values, uses an average wholesale used vehicle value based on Texas sales data. You can preview the full SPV of a used vehicle by entering the vehicle identification number (VIN) and odometer reading (not needed for motorcycles) in the boxes below.

[Arch Hoagland]

Originally Posted by powerboatr

yes.. plus a bridge tax, local municipality tax and tag fee to register it.

Bridge tax??

[wingnut60]

A lot of counties and other local taxing entities get a 'fee' passed that is supposed to be dedicated to maintaining roads and bridges--just like everything else, it goes into the general operating funds and never reappears for roads and bridges.....
Some places in TX also have EMS and fire protections 'fees' added to vehicle registrations...and sometimes they actually pay for fire trucks and ambulances..
These 'fees' a lot of times don't need voter approval, so if no great outcry when enacted, they never go away.

[Fiesta48]

Texas has "assessed values" for more well known vehicles. You pay 80% of that or the bill of sale price which ever is greater. Then 6.25% tax. You can't tell them you only paid a low price any more and get away with it. Trade-ins can save you this way.

[K0LCB]

Thanks for the information