What is an Auto Sales Tax?

QandAs: Autos

Answer:
When you purchase a vehicle, you

will have to pay sales tax on that purchase, just as any other purchase you make. The sales tax will be based on a percentage of the sale price. However, if you purchase the vehicle for far less than it is really worth, you may pay sales tax based on the estimated value of the vehicle depending on the laws of your state.

Some states also add fees into the total auto sales tax. If you purchase your vehicle from the dealer, the sales tax will usually be included in the price of your vehicle. However, if you purchase the vehicle from an independent seller, you will need to pay the auto sales tax when you register the vehicle.


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