<VV>Sales tax

[Padgett]

> > DO YOU PAY SALES TAX ON A USED CAR?

Folks: try reading the law. The tax is on the sale of an item. Nothing says 
"new", "used", or "other". The major difference is not in the law but the 
accounting. When a dealer buys an item for resale, an affirmation is made 
that the item is for resale and that the tax will be collected at the time 
of final sale to a consumer. This ensures that tax is collected on the item 
only once between manufacturer and end user. However at each stage there is 
accounting that the custodianship of the item (different from the title) 
has passed from one entity to another.

For big ticket items that require a formal transfer of ownership involving 
the state (e.g. boats, cars, homes, land), the state is in the middle and 
wants its cut. Laws exist to make sure of this.

Small used items are different in that no formal title passes and exchanges 
between individuals are often ignored. However when a business that is 
registered in the state sells an item, they do normally have to file an 
accounting with the state and will charge tax.

Keep in mind that each state is different and laws vary - some are more 
aggressive in collection of taxes than others which may feel that pursuing 
small transactions with no paper trail would cost more than it is worth.

Might mention that anyone who applies for a "tax number" with the intention 
of avoiding paying a state tax has just created a paper trail to 
themselves.  IANAL, if in doubt, ask a real lawyer.

For those interested in Florida specifically, see 
http://www.myflorida.com/dor/taxes/sales_tax.html

ps those in favor of a National Sales Tax might note that the UK already 
has one called the VAT. 17.5%.

Padgett