GMAN
Dedicated LVC Member
Effective Oct 1, The way you buy a vehicle has changed in Texas. Please read below which was taken from KHOU in Houston.....
New car sales tax may cause sticker shock
05:54 PM CDT on Friday, September 29, 2006
By Lee McGuire / 11 News
Click to watch video
Buying a used car anytime soon? Better hurry before some sticker shock strikes this weekend.
Scott Been is pricing his car to move. "Three-thousand below blue book," he said. While that's a good deal now, come Sunday morning it won't be quite so attractive. "Get some sticker shock, no question, about it on how much this transfer is going to be worth," said Paul Bettencourt with Harris Co. Tax Assessor. The Harris County Tax office is bracing for some complaints next week -- when car buyers find out the state is changing the way it collects taxes on used car sales.
Under the old system, buyers would pay a 6.25% tax on whatever they say they paid for the car.
Also online
State Web site explains changes
In the new system -- which takes effect Oct. 1 -- buyers will pay a 6.25% tax on what the state says the car is worth -- no less than 80 percent of a value TxDOT sets for that make and model.
"There's no question that people will be paying more on this tax," said Bettencourt.
This law does not affect people giving cars to charities or giving cars as a gift. It only affects private sellers selling to regular people. Still, some of those private sellers don't like the idea."
"Who would actually like it? I mean it's ridiculous to be honest with you," complained Been.
The state made the tax changes to crack down on dishonest buyers.
"To be honest I think they are theives," said Been.
Been says it hurts people who buy a car that's priced to sell.
The state has set up a Web site to help people get a sense what the taxable value of their used car might be.
New car sales tax may cause sticker shock
05:54 PM CDT on Friday, September 29, 2006
By Lee McGuire / 11 News
Click to watch video
Buying a used car anytime soon? Better hurry before some sticker shock strikes this weekend.
Scott Been is pricing his car to move. "Three-thousand below blue book," he said. While that's a good deal now, come Sunday morning it won't be quite so attractive. "Get some sticker shock, no question, about it on how much this transfer is going to be worth," said Paul Bettencourt with Harris Co. Tax Assessor. The Harris County Tax office is bracing for some complaints next week -- when car buyers find out the state is changing the way it collects taxes on used car sales.
Under the old system, buyers would pay a 6.25% tax on whatever they say they paid for the car.
Also online
State Web site explains changes
In the new system -- which takes effect Oct. 1 -- buyers will pay a 6.25% tax on what the state says the car is worth -- no less than 80 percent of a value TxDOT sets for that make and model.
"There's no question that people will be paying more on this tax," said Bettencourt.
This law does not affect people giving cars to charities or giving cars as a gift. It only affects private sellers selling to regular people. Still, some of those private sellers don't like the idea."
"Who would actually like it? I mean it's ridiculous to be honest with you," complained Been.
The state made the tax changes to crack down on dishonest buyers.
"To be honest I think they are theives," said Been.
Been says it hurts people who buy a car that's priced to sell.
The state has set up a Web site to help people get a sense what the taxable value of their used car might be.
