Hey guys I was talking with a few friends of mine and it seems like we all have different storys on how sales tax works for private owners. I am looking to buy a FD from a private owner outa state and I wasn't sure how the whole tax situation works, what percent it's at now and so on.

 

You pay sales tax based upon the county you live in. You need to look up what the sales tax is for King county if thats where you live. Each county has different tax rates so I can't tell you but assume 7.9% as a rule of thumb. In addition you will have to pay a couple of other fees as well. Call up a department of licensing in your county and tell them what the fees would be for a car that is out of state and what the purchase price is.

 

In Washington State, they call it "excise tax", so they can get you on private party sales too. Yes, it will be equivalent to sales tax. Keep in mind that Washington titles have a Sale Price blank on the Report of Sale, but not every other state does (at least Oregon does not), so you may need an affidavit of the sales price unless you are willing to accept the DOL valuation. Cars under $3,000 (in the DOL computer) do not have as high a standard for proving valuation (you can claim any amount) but cars over that amount they expect the claimed value to be within a certain percentage. If you search the DOL web site, you can find an affidavit sample and get the specifics of their valuation guidelines.

 

thanks for the unput guys