Bought/Sold a car within a year in Massachusetts

I've got some questions on the purchase and subsequent sales of a 2nd hand car.

  1. I paid a 5% tax on this car the day that I purchased it. Could I get a reimbursement since I didn't use the car for the whole year?

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Reply to
zutalors212
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Are you serious? The state collects sales tax each time the property changes hands, regardless of how long it was held by the previous owner. Registration fees are collected annually, whether you have the car for one year or one week. There is no reimbursement to the seller, but the buyer probably doesn't have to pay another registration fee for the remainder of the year (in some states).

Reply to
Herb Smith

And in this state, if it's a private sale as opposed to a dealer, the value is assessed from "Blue Book" values for tax purposes rather than a reported sales price to ensure reported sale price isn't lowballed. Also here registration fees are reimbursable to the seller on a pro rata basis, but not on a linear schedule, and the new owner will have to pay a new registration fee which includes the personal property tax on the vehicle (which is actually what is reimbursible).

Reply to
dpb

Not if it was sales tax. The sales/use tax is not an annual tax; it is a tax imposed on the sale transaction and would apply if you had used the car for only one day. Unless it qualifies for an occasional sale exception (as sales of vehicles by private parties often do, depending on the state), your sale of the car to a third party is also subject to sales tax. If the tax you paid was a registration fee or ad valorem tax paid on registration, it is paid for the period you use the car -- no refund for a partial year. The subsequent owner may get a few months' free ride on your registration fee, again depending on state law. Katie in San Diego

Reply to
Katie

A bit off topic, in NC you can actually get a partial refund of the personal property tax. I have never personally found it worth the effort because I usually drive my cars until they are almost worthless.

Reply to
Drew Edmundson

This is applicable in Mass too, but on older auto's might not be worth the effort as you point out. If one were to TRADE-IN the auto on purchase of a replacement, the trade value reduces the taxable base for the acquired automobile sales tax.

Reply to
Taxmanhog

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