Why isnt this illegal ?

In the state i live in , if you by a used car you have to pay the sale's tax on it b4 you can tag it,,This is the law ..Okay if you sale the car , the new owner has to be the sales tax on it agin b4 they can tag it ..needless to say each time the car is sold the sales tax has to be paid on it agin , and again ..This dosent seem fair to me ...The satate is ripping us off ...I believe the sales tax has already been paid once and thats all it needs to be paid...Why is this legal ?? that is double taxing the people ..well triple taxing ..tax gauging

if you go to a second hand store to buy clothes you still pay tax on the stuf you buy there even though tax was paid when it was origionally bought.

You have to pay tax on anything you buy legally except services

your spelling should be illegal too

I agree, and like the saying goes, "There's two things for sure in life, taxes and death". We only do the death part once though, since it's not government controlled!
.

I agree, that doesn't seem fair. Someone once told me not to ask why someone didn't do anything about a problem I noticed, they told me I am someone! Stand up and point this out to more people, ask for help to change this law. Contact your local politicians and ask why this law exists?! Good Luck! =)

Sorry to burst your bubble, but this is not illegal and it shouldn't be illegal.

When you purchased the car, your intent was to "use" the car as a form of transportation. You did not have any other intent. Please correct me if I'm wrong about this.

When you were finished "using" the car, you sold it to someone else who had the same intent when you originally bought the car. This is a totally separate transaction when you originally purchased the car. Therefore, it is two separate taxable transactions.

When it comes to paying tax on vehicles vs paying tax on other items that an individual sells, the government has a system in place to track vehicle purchases. This ensures that the sales tax gets paid to the state. However, if you bought a chair, for example, and once you decide to sell it, technically, sales tax should be collected and remitted to the state. Since there is no system in place to track the sale of that chair after it leaves the stream of commerce, sales tax is usually not collected on subsequent sales unless it re-enters the stream of commerce.

This is a basic answer that ignores various exemptions that exist in sales tax law.

The general principle is that the same person cannot be taxed twice for the same thing. But the same item can be taxed multiple times if it different people.

The tax is on the selling, not the selling of that specific car.

Each person pays their own personal sales tax. You bought it from someone and that was a sale. Someone bought if from you and that was a sale. I know it doesn't seem fair, but who said life was fair.

I can follow your logic - but that's just not the way it works.

Write to your state representatives.

good luck

well, let's go a step back. you allready paid taxes on the money you had to pay for the vehicle ,then you had to pay taxes on the vehicle, then you had to regesiter the vehicle and any other charges incluline insurance. the bottom line is you and i donnot own anything in this country. we simply rent. example-------own a house and be unable to pay the taxes and see how the government will put you out in the street

I love smart and deep questions in disguise.
I got A-bad news and B-good news
A- It seems unfair because our culture has changed, Since the formation of our nation we paid taxes on every transaction. As payment to the government that protected the right to trade in a free and Safe society, Safe from bandits, at least that is the idea developed by the Romans.
However back in the time of our founding fathers the transactions most common were land, living necessities,cattle and and farmed goods, mostly perishable goods. Few things were traded which had enough longevity to be traded again such as ships, stores, horses and slaves. Not much chance to resale it and for the state to rip us off.

Fast fwrd to our times where at Xmas time our children open a mountain of expensive presents to be abandoned few hours later. we are addicted to upgrading and our economy depends on it.

We willingly chose to discard way of life that practices the value of hanging on and caring for well made things. to make the point: people (most of us) rather buy cheaply made merchandise such as watches, electronics, tools, etc from China several times over and over as in the case of hammers, wrenches and shoes than to buy just once and care for it a wall made lasting item such as a snap-on tools. We truly are a disposable society, whether be automobiles or stocks and bonds.
My parents retirement are provided mainly by Stocks they acquired at the companies they worked for 30 years ago. They have owned those stocks for over 30 years. That is not the manner of stocks and bonds ownership today, right or wrong or indifferent just plain just different, Times have changed faster than our ability to pay attention to the laws of our land.

I don't do not think that the state is ripping us off, they don't have to, we already have done it to ourselves over and over. some one said long ago "Every people get the government they deserve", look at Iraq.
We as citizens are not the same as the people of our founding fathers: we are not frugal, nor pragmatic, nor simple, nor shy from grandiosity and most certainly not sober.

B- The Good news: However look at Alabama where a new tax reform is being looked at by Republican Gov. Bob Riley, based on the the paper published by the ethics and tax proffesor Susan Pace Hamill, a 42-year-old law professor at the University of Alabama. â€œAn Argument for Tax Reform Based on Judeo-Christian Ethicsâ€.
So it is practical for citizens to say enough.

Here is a copy of an article link below you can only download document, there is no web site per say:
EXPLODING NEXUS MYTHS
Why Current Constitutional Standards Are Fair
And Serve The National Interest

by George S. Isaacson
Tax Counsel to The Direct Marketing Association
prepared for
The Advisory Commission on Electronic Commerce

1. Myth
The Constitution=s limits on state taxing power are old fashioned and not relevant to a modern economy.

Fact
The Constitutional Convention of 1787 was initially called to address the problem of individual state legislatures imposing taxes and duties on trade with other states, a practice which was pushing the young country into a depression. Article I, Section 8, Paragraph 2 of the Constitution - the Commerce Clause - saved the national economy by creating an open market, in which goods could move freely from one state to another. The Founding Fathers had the vision to create a Î‘common marketâ‰… 200 years before Europe got the idea. Their foresight produced the greatest economic engine in the history of the world. The need to protect interstate commerce from the myriad of confusing and non-uniform state tax laws remains as important today as it was in the 18th Century.

hope this help
sorry about the wordiness but is a deep subject thanks for asking the question is a very smart question
be well and happy

It has been paid once, but you're re-selling it, therefore it's subject to re-taxing. It's not like the government is charging the same person the sales tax over and over, it's charging sales tax each time it's sold.
That's like if a retailer buys from a wholesaler, they pay tax. then then you buy from a retailer, you pay tax. Same concept.

Yes, there are a lot of tax laws that just don't seem fair. But the government makes the laws and they can pretty much do what they want. They risk getting voted out of office if they're too unpopular, but for some reason that doesn't always keep everything fair.

Each time the car is sold, it is a sale. The tax is not on the car -- it is on the sale. I know, it sucks, but that is how it is viewed.

First off type so i can understand you easier, please. It isnt illegal because the government needs money, the person now buying the car hasn't paid sales tax, and sales tax is for when it is bought or, in other words, when it is SOLD. For each sale, sales tax pops up because that is what sales tax is, for the sale.

Sounds like a reason ,to write a letter to your local officials .Then your state officials,and I.R.S.
Find out, you may be the beginning of having it changed.

Not really. You buy something, you pay taxes on it. You only pay the sales tax once.

So you want to sell something, the person buying it has to pay sales tax. It's no different than a store chatrging sales tax, except the state makes the purchaser take care of it instead of the seller.

If you want to go into business selling cars, then you can buy cars tax exempt and sell them, but then you'll have to collect the sales tax and report it to the state.

when a stor buy merchandise to sell it pays tax, when it sells the items, you pay tax.. its called capitalism

if you ask me our government is always trying to rip us off so i think that it should be illegal. people are just soo greedy that they will do anything in their power to get money

way to get around it is on the documents say you sold it for a dollar. .... some states you can gift it.

yes you pay tax when you buy a car, but if you sell it you get a refund. So the state isn't collecting it over and over just kinda transfering it around

idk, do u see ANYONE else complaining. NNNNNOOOOOO!!!!

Enter Your Message or Comment

User Name:
User Email:
Post a comment:

Archive: Forum -Forum -Finance - Links - 1 - 2 - RSS - All RSS Feeds
The Causes and the Results. 0.024
Copyright (c) 2011 Financial Crisis Tuesday, May 29, 2012 - Terms of use - Privacy Policy