Quote:
Originally Posted by BrianL99
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If you buy a used car from a private party and never register it, you don't have to pay a sales tax? That defies logic. It's merely common practice, because it's the expedient solution.
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Correct, if you buy a used car from a private party and never register it, you don't have to pay a sales tax. But, what defies logic? That you wouldn't have to pay sales tax or that you wouldn't register a car you just bought?
Yes, it is an expedient solution because the alternative would be to require private citizens to calculate, collect, and remit the taxes. Since nearly every vehicle sold will be registered, it is far easier to put that burden on the state office that administers the registrations. Note that this is only required for private sales, if a business sells the vehicle then the business must collect the sales tax.