[morgenstern]

I trying to understand a bit more about exactly how dealers price their vehicles, and I'm wondering, when a dealer buys a car from the manufacturer, does the dealer pay sales taxes in the same (or a similar) way that the customer does?

If so, what sales tax does the dealer pay? Is it the same 6.25% Texas sales tax levied on vehicle purchases when a private citizen buys a car?

Or, is the car only taxed by the state once, when the customer purchases the car from the dealer?

Thanks!

 

[a14umbra]

Most, if not all states, do not tax twice. Resellers do not pay sales tax, since the end user does.

Also, I found this quite enlightening, It's 12 pages long and full of stuff you probably already know, but there is some additional good info in it.

http://www.edmunds.com/car-buying/10-steps-to-buying-a-new-car.html

 

[morgenstern]

Thanks, a14umbra. I figured that was the case, but after walking away from two potential purchases, I began doubting my own judgment, and I'm very good at second-guessing myself anyway.

Edmunds has been a valuable asset in my search to find the right price -- I just have to remember to add the sales tax every time I look at their bottom-line recommendation. Neglecting to figure in the sales tax can make a fair offer seem quite terrible.

 

[mnpoolman]

Don't forget about the "gas guzzler" tax that goes along with specific vehicles. I paid a $3000 gas tax when I purchased my SRT. Truth be told this type of tax is wrong. The governments reasons for this tax makes no sense. We already pay enough federal and state taxes on each gallon of gas we purchase. It doesn't matter if it goes into a vehicle than gets 10mpg or 35mpg. They get their money either way so to impliment a gas guzzler tax on certain vehicles is truly a rip off.

 

[itzrick]

The way I understood it the gas guzzler tax was to make you buy a more efficaint car, not to make money on the gas. Still a real stupid idea. If I'm paying 50K for a car the goverment aint going to change my mind with a 3K tax.

 

[Robby426]

Gas Guzzler tax on our cars is 1000$..


The IRS collects the tax directly from the manufacturer or importer of the vehicles. The following table shows the gas guzzler tax rates which have been in effect since January 1, 1991. The manufacturer or importer must pay this amount for each vehicle that doesn’t meet the minimum fuel economy level of 22.5 mpg.


Combined fuel economy of: Amount
at least 22.5 mpg No tax
at least 21.5, but less than 22.5 mpg $1000
at least 20.5, but less than 21.5 mpg $1300
at least 19.5, but less than 20.5 mpg $1700
at least 18.5, but less than 19.5 mpg $2100
at least 17.5, but less than 18.5 mpg $2600
at least 16.5, but less than 17.5 mpg $3000
at least 15.5, but less than 16.5 mpg $3700
at least 14.5, but less than 15.5 mpg $4500
at least 13.5, but less than 14.5 mpg $5400
at least 12.5, but less than 13.5 mpg $6400
less than 12.5 mpg $7700

Gas Guzzler Tax: Program Overview | Fuel Economy | US EPA

 

[Cuda340]

Don't forget about the "gas guzzler" tax that goes along with specific vehicles. I paid a $3000 gas tax when I purchased my SRT. QUOTE]

$3,000? The gas guzzler tax on the 2009 SRT was $1,700. Are you referring to the gas guzzler tax plus the sales tax?

 

[mnpoolman]

Don't forget about the "gas guzzler" tax that goes along with specific vehicles. I paid a $3000 gas tax when I purchased my SRT. QUOTE]

$3,000? The gas guzzler tax on the 2009 SRT was $1,700. Are you referring to the gas guzzler tax plus the sales tax?

You are correct....after reviewing my invoice the gas guzzler tax was $1700.

 

[moparman53]

Sounds like the IRS is the one guzzling.