Trading cars in PA. Sales Tax?

[PAdutch]

I am looking at trading my 1997 Explorer for a 1995 suburban both of which are valued similarly. I've kinda gotten mixed feedback and wanted to verify the sales tax.

As far as I understand there should be no sales tax. Correct?

[jpalamar]

You will proballly get a tax bill from Pendot after your register it. They did it to me when I bought my motorcycle lower then book value because it was damaged but they didn't care. It wasn't worht the amout of time and money it owuld of cost to pay the few extra bucks.

If I were you, I would get the bill of sale/even trade notorized.

[futuredsmowner]

Originally Posted by PAdutch

I am looking at trading my 1997 Explorer for a 1995 suburban both of which are valued similarly. I've kinda gotten mixed feedback and wanted to verify the sales tax.

As far as I understand there should be no sales tax. Correct?

Your trading for a suburban with gas prices the way they are!?!

[AWD GS]

you'll pay taxes when you go to transfer the title

[PAdutch]

Originally Posted by futuredsmowner

Your trading for a suburban with gas prices the way they are!?!

haha yeah with the big engine too I wanna hual stuff and wont drive it much otherwise.

Im not going to lie about the value but I think if no money changes hands you dont have to pay sales tax.

[jpalamar]

http://www.portal.state.pa.us/portal..._program/14788
http://www.dmv.state.pa.us/motorVehi...r/buying.shtml

[PAdutch]

Originally Posted by jpalamar

http://www.portal.state.pa.us/portal..._program/14788
http://www.dmv.state.pa.us/motorVehi...r/buying.shtml

Again I am not trying to undervalue the car.

Read the sales tax part:
http://www.dmv.state.pa.us/pdotforms...fs-buysell.pdf

If a motor vehicle is taken by the seller as a trade in, the tax is imposed upon the difference between the purchase price of the
motor vehicle purchased and the value of the motor vehicle taken as a trade in by the seller.

If we are trading cars of equal value the difference is nothing. Right?

I would really like to hear from someone who has traded vehicles before.

[jpalamar]

I would call an auto tags place.

[novec64]

There are forms each of you can fill out saying they were gifted to each other. The notary will have them on hand. You don't have to pay taxes or undervalue vehicles if you use those. Nice Evo btw.

[90blacktsiawd]

I've done this before with equally valued vehicles. Other than paying to get the titles transferred we didn't pay any other fees.

[PAdutch]

Originally Posted by 90blacktsiawd

I've done this before with equally valued vehicles. Other than paying to get the titles transferred we didn't pay any other fees.

This is how i thought it worked

[OMGz Turbo]

Listen i just transferred my explorer into my name, even telling them that i paid 2500$ which is truly what i paid i got a thing in the mail from the DMV saying i OWED them money because it was below blue book value. Most ridiculous thing i have ever seen in my life

[Vince@R/TTuning]

I know you are speaking about trading so I'm not so sure about taxes on that.

I know if you do a bill of sale and with all the important info and state why you are buying the car at such a low value, usually you just need to send that in to PENNDOT and thats good enough for the stated value issue.

But if I can vent for a minute, I think it is absoulutly F***ing Bull**** that the state charges you Tax on something that was already taxed when new and those taxes were paid, its double dipping and its bull****

[jpalamar]

Originally Posted by Vince@R/TTuning

I know you are speaking about trading so I'm not so sure about taxes on that.

I know if you do a bill of sale and with all the important info and state why you are buying the car at such a low value, usually you just need to send that in to PENNDOT and thats good enough for the stated value issue.

But if I can vent for a minute, I think it is absoulutly F***ing Bull**** that the state charges you Tax on something that was already taxed when new and those taxes were paid, its double dipping and its bull****

I can understand charging tax if you buy it from a business... but I don't see why it is OK to sell stuff on eBay on a personal level and not tax it but cars/motorcycles have to have tax paid for transfer of ownership.

[Reds82]

if its a equal trade value you should just be paying for the transfer plates registration not on the vehicles just did this a few months ago with cars

[Reds82]

Originally Posted by Vince@R/TTuning

But if I can vent for a minute, I think it is absoulutly F***ing Bull**** that the state charges you Tax on something that was already taxed when new and those taxes were paid, its double dipping and its bull****

you can vent all you want and it does suck I bitch about it all the time

[Slevin]

Originally Posted by Vince@R/TTuning

I know you are speaking about trading so I'm not so sure about taxes on that.

I know if you do a bill of sale and with all the important info and state why you are buying the car at such a low value, usually you just need to send that in to PENNDOT and thats good enough for the stated value issue.

But if I can vent for a minute, I think it is absoulutly F***ing Bull**** that the state charges you Tax on something that was already taxed when new and those taxes were paid, its double dipping and its bull****

Originally Posted by jpalamar

I can understand charging tax if you buy it from a business... but I don't see why it is OK to sell stuff on eBay on a personal level and not tax it but cars/motorcycles have to have tax paid for transfer of ownership.

All of this. It angers me on an emotional level as well.

[DPDISXR4Ti]

Keep in mind, it varies by state. I know in Mass the only thing that is acceptable is a bill of sale from a car dealer registered in Mass, otherwise, they decide the value.