Sep 28, 2006 7:17 pm US/Central
Tax Laws For Used Car Sales Change October 1st
by Stella Payne
DALLAS (CBS 11 News) ―
New tax laws for used vehicles in the state of Texas start October first.
The sales tax you owe when you buy a used motor vehicle from an individual will now be based on the actual amount paid for the vehicle. Previously owners/buyers didn't have to provide documentation as to the price paid for a used vehicle.
Today Harold Colquitt is paying a lot less in used car sales taxes. He says, "It's real good. It will save me money."
Colquitt just purchased a used 1991 Dodge van. Because he is buying the vehicle before October 1st, he doesn't have to pay the
standard presumptive value.
"The purpose behind it is to kind of give a level playing field for all of the values on the cars," says Shirley Jacobson, Chief Deputy, Dallas County. "So that we don't have somebody selling a car to a friend, coming in telling us, paying tax on $500, when the car is really worth $10,000."
Purchasers don't have to worry about the motor vehicle tax rate changing. It stays at 6.25%. The new law will be used to calculate the taxes
due.
"The presumptive standard values will be figured for us. We will not have to do anything. It will be in our system and it will be pulled up and then we'll charge the appropriate amount based on that standard value," Jacobson said.
The clerk's office says the changes made will be significant ones, because in the past all too often the correct taxes were not been paid on use vehicles.
(CBS 11 News)
