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VW TDI EPA Recall (2.0L and 3.0L)

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#5,101 ·
If marketed correctly, Skoda could find an audience in urban/suburban areas.
 
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#5,102 ·
Stabone33 said:
In Colorado, sales taxes are collected only on the first sale of a vehicle. After that it's registration taxes only, which are based on the car's depreciated value from new.
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Be glad you live in a state where the sales tax laws make logical sense. Some states have decided sales taxes are just a form of revenue, and that they don't have to make sense. So they tax used car sales as well. This creates the contradictory situation where two cars can be taxed differently, even though they're used the same amount (driven the exact same number of miles in the same number of years).

Car A is bought for $40,000. $2000 paid in sales tax (5%).
Used for 5 years and 75,000 miles.
Total sales taxes paid = $2000.

Identical car B is bought for $40,000. $2000 paid in sales tax (5%).
Used for 1 year and 15,000 miles, sold for $30,000. $1500 paid in sales tax.
Used for 1 year and 15,000 miles, sold for $25,000. $1250 paid in sales tax.
Used for 1 year and 15,000 miles, sold for $20,000. $1000 paid in sales tax.
Used for 1 year and 15,000 miles, sold for $15,000. $750 paid in sales tax.
Used for 1 year and 15,000 miles. Total 5 years and 75,000 miles.
Total sales taxes paid = $6500.

The states also like to call it a use tax instead of sales tax, so they can also tax out-of-state sales without running afoul of the U.S. Constitution. But if you think about it, the logical way to apply a use tax to used car sales is:

Car B is bought for $40,000. $2000 paid in use tax (5%).
Used for 1 year and 15,000 miles, sold for $30,000. $1500 paid in use tax. 1st owner only got $10,000 worth of use out of car, so he really should've paid just $500 in use tax. So he gets a refund of $1500 use tax.

Used for 1 year and 15,000 miles, sold for $25,000. $1250 paid in use tax. $1250 use tax refunded to 2nd owner.
Used for 1 year and 15,000 miles, sold for $20,000. $1000 paid in use tax. $1000 use tax refunded to 3rd owner.
Used for 1 year and 15,000 miles, sold for $15,000. $750 paid in use tax. $750 use tax refunded to 4th owner.
Used for 1 year and 15,000 miles. Total 5 years and 75,000 miles.
Total use taxes paid = $2000.

So logically, taxing used car sales should result in no net tax revenue, so the simpler solution is to not do it. But in any contest between logic and more tax revenue, logic loses.
 
#5,103 ·
I never understood why some states (Wisconsin included) collect sales tax on a used vehicle. The tax was paid in full when the vehicle was purchased new. That's double dipping!

I understand that further reduces the incentive to buy a new car, so maybe it is prorated similar to the above post. The tax is paid in full when the vehicle is purchased. When the first owner sells the car the tax is prorated. If the was car purchased new for $50,000 and sold for $30,000, then the owner should only be responsible for $20,000 in taxes. The taxes on the remaining $30,000 could be refunded when filing their annual state tax return and collected with their refund. The second owner of the car pays sales tax on the $30,000 purchase price.

Calling it a "use" tax doesn't make sense either. There is already an annual registration/use fee. For every gallon of fuel purchased there is an additional "use" tax factored into each gallon. This is more closely related to the actual use of the vehicle. More use = more fuel = more tax.
 
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#5,104 ·
JettaGetUpandGo said:
I never understood why some states (Wisconsin included) collect sales tax on a used vehicle. The tax was paid in full when the vehicle was purchased new. That's double dipping!
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Some folks are apparently under the false impression that there is some inherent "right" and "wrong" way to tax, or that there is some inherent tax that a new vehicle owes (and no more). There isn't. Governments raise the revenues they need to pay for government spending by taxing things. Different governments tax things differently. Some states tax the PURCHASE of a vehicle, whether the vehicle is new or used. Some states impose an annual personal property tax on vehicles. In Texas (and some other states), the state collects a "sales tax" on the purchase price of both new and used vehicles (but not on any trade-in allowance), but does NOT collect an annual personal property tax on the vehicles you own. Texas does not collect an income tax (but we have higher real property taxes). Most other states do collect an income tax. If a state did not collect a sales tax on the purchase of a used vehicle, then they would just have to tax something else.
 
#5,105 ·
Collecting sales tax on a used vehicle where one already collected taxes is just wrong. Nevada recently removed that provision for private party sales. Still collects if a dealer sells used and it's a pretty frequent topic brought up here. Collecting tax more than once on the same goods sold.
 
#5,107 ·
BeemerMikeTX said:
Not really wrong. You just don't like it. Some states collect sales taxes on food purchases. Texas does not collect sales taxes on purchases of "basic" foods (milk, bread, etc.), but does collect sales taxes on other food purchases.
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You're right. I have my opinion and you have yours. Have fun with double taxation.

Why you brought up taxation, or lack of, on foods is irrelevant to my comment because they aren't double taxed to begin with.
 
#5,109 ·
Philth said:
Collecting sales tax on a used vehicle where one already collected taxes is just wrong. Nevada recently removed that provision for private party sales. Still collects if a dealer sells used and it's a pretty frequent topic brought up here. Collecting tax more than once on the same goods sold.
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Doesn't Nevada DMV collect a Governmental Services Tax annually based on the county of residence?

I don't agree that sales tax on used automobiles is right, too. (we pay 3% in Virginia, new or used). But, they are going to get you with tax, regardless. We also pay a 'Personal Property Tax' to the city/county of residence on vehicles. Our annual DMV registration fee, however, is low.
 
#5,111 ·
182RG said:
Doesn't Nevada DMV collect a Governmental Services Tax annually based on the county of residence?

I don't agree that sales tax on used automobiles is right, too. (we pay 3% in Virginia, new or used). But, they are going to get you with tax, regardless. We also pay a 'Personal Property Tax' to the city/county of residence on vehicles. Our annual DMV registration fee, however, is low.
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Yes, that's correct. It's for using the roads, infrastructure, etc. I don't pay it, though ;)

New car or used dealer tax is the same as if I was buying a light bulb at Home Depot; somewhere around 8.1%; a complete rip off.
 
#5,112 ·
Isn't this just sooooooooooo much more interesting than emissions!
 
#5,114 ·
Philth said:
There is a difference between single purchase of goods and a use tax.
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Actually, there is not a difference. A "use tax" is simply a tax levied on the PURCHASE of something from out of state that would be subject to a "sales tax" if you purchased the same thing inside the state. A sales/use tax is levied on the TRANSACTION (i.e., the sale/purchase), and not on the thing itself (i.e., the vehicle). So, collecting a sales/use tax on the purchase of a USED vehicle is NOT double-taxation, because you have a new, separate transaction/purchase that triggers the tax.

If anything, property taxes are more like double-taxation, because you repeatedly pay the same tax each year on the same property even though nothing happens.

And to bring it back to the thread topic, this different treatment from state to state will probably complicate how Feinberg handles sales/use taxes in any compensation package. :)
 
#5,115 ·
BeemerMikeTX said:
Actually, there is not a difference. A "use tax" is simply a tax levied on the PURCHASE of something from out of state that would be subject to a "sales tax" if you purchased the same thing inside the state. A sales/use tax is levied on the TRANSACTION (i.e., the sale/purchase), and not on the thing itself (i.e., the vehicle). So, collecting a sales/use tax on the purchase of a USED vehicle is NOT double-taxation, because you have a new, separate transaction/purchase that triggers the tax.

If anything, property taxes are more like double-taxation, because you repeatedly pay the same tax each year on the same property even though nothing happens.

And to bring it back to the thread topic, this different treatment from state to state will probably complicate how Feinberg handles sales/use taxes in any compensation package. :)
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I give up. You win. Kind of goes in line with the rest of the threads you feel like you have to comment on to prove how you are right. Cheers.
 
#5,116 ·
That I cannot comprehend. Taxation and all these differences between the states. I bought a laptop in one state, had no time in airport to apply for "tax free" then couldn't find tax free point at the next airport and was given an answer: "No refund here, my friend, it's another state".
 
#5,117 ·
Njord said:
That I cannot comprehend. Taxation and all these differences between the states. I bought a laptop in one state, had no time in airport to apply for "tax free" then couldn't find tax free point at the next airport and was given an answer: "No refund here, my friend, it's another state".
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The United States is a federal republic. Each state can adopt the taxing system that it feels is best for the state. There is no requirement for consistency among the states.
 
#5,118 ·
Philth said:
I give up. You win. Kind of goes in line with the rest of the threads you feel like you have to comment on to prove how you are right. Cheers.
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If you want to assert that you don't think the purchase of a used vehicle should be subject to a sales/use tax, then fine, that is your opinion. If you further support your opinion by claiming that a sales/use tax on a used vehicle is somehow wrong or improper or double-taxation, then don't be surprised or upset if people point out that your claim is incorrect, and then explain to you why your claim is incorrect.
 
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