Quote:
Originally Posted by derf
Talked to him again, he starting to think that he might have to pay sales tax on them before he sells them. They gave him the temp tags, a bill of sale/reciept, and a stack of papers, and they are supposed to send him the titles next week. I think he paid sales tax because you would have to pay it to get the title put in his name right? He's scared that he didnt which woudl raise the price over $1k
|
If they sold them to him with the expectation of resale, they might not have collected the taxes.
Usually the point of collections is the point of registration with the state for street use.
Sometimes the "tax" isn't a tax. Some states don't have sales taxes on vehicles but do have a registration tax.
As an example, NC has no sales tax on vehicles but collects a 3% highway use tax. If you don't plan to use the vehicle on the roads, you don't have to register the vehicle and therefore don't pay the 3% tax.
The question is whether the titles are sent with him as the registered owner or for resale (untitled). Does he have a dealer license? If so, he probably won't have paid taxes, but you as the buyer WILL have to pay sales taxes.