Double tax ?

[czr]

I live in Taxachusetts (Massachusetts) I was told by the dealer when I trade in my old tractor that I paid the 5% sales tax on I cannot deduct that trade in cost of the tax on the new tractor. Example, if the dealers trade in value is $5000.00 and the sales tax is 5% this equals $250.00.Is it true that you pay the entire tax of a new tractor even though you are trading in a tractor that you already paided tax on?This does not seem fair to be taxed twice.

 

[RichNJKubota]

You should revolt against the taxes and dump your new tractor into the Boston Harbor!
The Boston Tarctor Party.

Rich

 

[gmsssi]

That's the first time I ever heard that one. I've always known to get the tax credit from the trade in. My, my, these tax schemes are getting ridiculous. You need to find out for sure on that one, just seems unfair. That trade-in will earn tax again from the next buyer. Jeez........... /forums/images/graemlins/confused.gif

 

[Haneyrm]

Maryland is the same way. Buy something and pay tax on the full purchase price. Trade it in on a new something and pay tax on the full purchase price again. Florida only makes you pay tax on the difference between new and trade. It only makes sense. Actually there is not tax on tractors in the state of Florida if they are used of agriculture of any kind.

Mike

 

[JoeR]

Time for another Boston Tea Party! It's amazing the state where the first tax rebellion occurred is the leader in taxes and limits on freedom.

 

[SnowRidge]

It is pretty common for states to tax the full retail price. They don't care if part of the payment was your old tractor or your old Buick.

Some states do differ, and some have caps.

If I recall correctly, the voters got an initiative onto the ballot in Washington state that eliminated taxes on the trade it part of the price. The politicians howled that government services would be cut, etc., etc.

The initiative passed hands down.

If I have my facts wrong on this, I'm sure somebody from 'New Cascadia' will correct me. /forums/images/graemlins/wink.gif

 

[Highbeam]

The state could get tax revenue each time a vehicle is sold. Maybe something like my bulldozer that will be bought and sold some 5 times through its life.

Here in WA they did get the vehicle registration reduced to 30$ like they have in OR. But then by the time you actually get there it is more like 60$. Sure beats the heck out of 600$ though when it was based on vehicle value. We are now getting ready to repeal a new 9 cent gas tax that our new lame governeor decided to add. We all hate taxes, and now it is just principle.

 

[gmsssi]

In PA you pay tax on the difference in price of the new vehicle and price agreement of the vehicle being traded!

 

[danbike]

Illinois only taxes the net CASH price of the vehicle. You deduct the trade in from the cost of the new. I had one deal where I traded 4 old british motorcycles for one restoration. Since the net deal was a cash maker for me, there was no tax on the transaction.

I love Illinois, except for most of the politicians!!!!! /forums/images/graemlins/grin.gif

 

[frank_f15]

same up here in NY, trade in is deducted before tax is figured, which is odd Because NY taxes for every thing /forums/images/graemlins/mad.gif