Sales Tax?
 

Is there a sales tax to pay when you purchase a used golf cart from a private individual who has posted a classified ad?

Thanks.

No!

Thanks
 

That’s what I was hoping. Thanks for your quick reply!

Please tell me how a used golf cart is exempt from Florida Sales Tax?

I'm not insinuating everyone or even anyone actual pays Sales Tax, but I can't find anyplace in the laws or regulations that exempt a used golf cart. If you buy one from a dealer, you surely have to pay sales tax ... where does the supposed exemption come from, for "private sales" ?

Low Speed Vehicles - Florida Department of Highway Safety and Motor Vehicles

Chapter 320 Section 01 - 2021 Florida Statutes - The Florida Senate

What transactions are subject to the sales tax in Florida?

I believe it is the seller’s responsibility to collect the sales tax and pay the state. However, unless you are a business, I doubt the “revenuers” are going to track you down for failing to collect and pay sales taxes. To save typing for some, an individual buying a car or boat from a private sale will pay sales tax at the time of registration with the BMV.

If I sell my used golf cart to my neighbor, I am not authorized to collect sales tax.

You say I have to go register as a seller and then I can sell my cart.
Balderdash!
Doesn’t common sense come into play.

Probably not.

Although, the law in Florida says you have to pay Sales Tax on any "motor vehicle" and a golf cart is defined as a "motor vehicle". That's the closest I can come to common sense.

Private sale of personal NON-licensed equipment. I sold tennis racket I suppose you think that’s taxed? Now it they brought it from business then yes, taxed like everything sold from business.

I love to pay taxes when I get lucky at track or lottery. I guess the government thinks they got lucky also.

If the seller collects the tax, where.does he put the money?

Just think of all those garage sales, and the amount of sales tax that is collected. Not!

This is a tough one and I’m only surmising but I think private sales...much like buying a car privately, the onus would be on the buyer when it comes time to register said vehicle. Then all that fun stuff would kick in

Sales Tax
 

I could never understand why when I buy anything used I should pay sales tax. When retailers sell new they collect sales tax and pass it on to the state. That should be it! Why does the state get to reek the benefit on the same item if it is resold over and over? Where does it end?

It doesn’t end. Welcome to fuzzy municipal math. In some states you buy a car, pay sales tax....then every year you pay excise tax (essentially sales tax in perpetuity....depreciation factored in) on said car.

Sales tax
 

If you don’t tell I won’t tell

Personally I like the word “private” in private sale. Suggest the OP keep it that way. The golf cart does not need to be licensed or registered. Some questions are best not asked. This might be one of them. Just saying……

When you buy a car in Maine you pay tax on sales price (obviously). Thereafter on an annual basis you are charged registration based on the declining value of the car. Crazy.

But you may notice that the folks in that run the “estate sales” do charge sales tax.

I don’t believe a golf cart resales by private citizen is taxable. Unless running as a business. Vehicles that “require” registration (street legal golf carts) are taxable. . See this article regarding FL sales tax exemptions for “occasional sales”by private persons (ie garage sales).


FL Sales Tax: Occasional Isolated Sales Exemptions.

Even our UK tax addicted government, do not claim any tax on private sales.
But, anything from a business, they are there with their hand out.
20% as well. :ohdear:

That is why I will only deal with tradesmen who will accept cash.
I can't dodge it with materials, but I refuse to pay it for labor.
The government still tax our pensions and savings, that's enough as far as I am concerned.

Golf carts are not required to be titled or registered and, therefore, are not required to be insured with PIP and PDL insurance coverage. Golf cart operators are not required to have a driver license; however, to operate a golf cart on designated public roadways, a person must be 14 years or older. Really simple to understand..

State no, but federal, maybe! I think this passed in 1970. Remember any bank deposit over $10,000 is reported to the IRS, then some form 8xxx has to be filled out. What people have had to do is prove to the IRS this was not capital gains/gift, which means if you sell your golf cart for less than what you pay for it, then you need to prove this if audited and you pay no tax, but if you sold a golf cart for $15,000 but paid $12,000, they will be looking for a tax on the $3000. Keep your records of your large purchases

I don’t disagree - I’ve always felt it is double, triple, etc. taxation.

Slang
 

Please remember......... a cart is something you push or pull, a
car is something you drive, the slang of golf cart has been used over the years by the less educated, the proper term is golf car. You can license plate a golf car, no need to license plate your push or pull cart.

The word private means, having no official or public role or position, so if your private sale hits the IRS lights it is no longer private.

Slang can be confusing, BUT, proper English is definitive. :coolsmiley:

Many years ago in Florida, I sold a used projection TV via a classified ad. No sales tax was involved in that transaction; there is no mechanism to collect the sales tax for such transactions. If I sold a used motor vehicle to an individual, the registration of that vehicle would have to be changed, and I suspect a sales tax would have to be paid at that time. Since golf carts (and old projection TVs) do not have state of Florida registrations, there is no mechanism to collect sales tax.

As you describe (assuming the individual is not in business as a dealer of used golf carts), the purchase is exempt from Florida sales and use tax under the Florida Administrative Code as an ‘Occasional or Isolated Sales or Transactions Involving Tangible Personal Property or Services‘. Below is a link to the rule.

12A-1.037 : Occasional or Isolated Sales or Transactions Involving Tangible Personal Property or Services - Florida Administrative Rules, Law, Code, Register - FAC, FAR, eRulemaking

I think you're exactly right.

I think by law, there is Sales Tax on a private sale, used Golf Cart. I can't find anything to the contrary. That said, I don't anyone really pays that sales tax and as long as it never has to be "registered" in any way, I suppose it's reasonably safe ... unless the Florida Taxing authorities, are read TOTV.

Then ask yourself why inheritance taxes exist. A person pays social security, federal, state etc for years and years on their income. Then they pass away and wham, the person who collects pays taxes on that. Sad, but true.

Because they do more than 2 a year and are a legitimate business that makes a profit on their work. When I rented out my Village home for a couple of years (less than 6 month lease), I registered with FL and collected sales tax and submitted it to the state within the month after the tenant moved out. I’m going to guess if your buy old furniture, fix and refinish it and sell it, you would collect sales tax and also pay some income tax. Probably the same as if you sold golf carts out of your driveway. So buying the used golf cart from your neighbor, no title and they are not in the business of selling golf carts, no sales tax is collected.

Thank you

So if you bought a used (unregistered for off road) golf cart from an individual that is not in the business, no sales tax. If you bought one from Used Golf Carts, Inc… the seller would collect the sales tax.

Oh the sheeple mind. Reminds me of the wizard of oz.

Quote: "(2) An exempt isolated sale or transaction occurs when an entity, which for purposes of this rule is a “person,” as defined in Section 212.02(12), F.S., required to be registered as a dealer, either distributes tangible personal property in exchange for the surrender of a proportionate interest in an entity, or transfers all, or substantially all, of the property of a person’s business, or a division thereof. Also, the transfer of property to an entity in exchange for an interest therein in proportion to the tangible personal property contributed is exempt as an isolated sale."

I *think* this only applies to a "person who is required to be registered as a dealer", sells off a business or miscellaneous items".

I'm sure there's a specific state regulation or opinion that codifies the situation of a private party, selling a golf cart, but I can't find it.

That’s how it works.

It's called a "sales" tax.....Translation: a tax on sales.

Read (1) of the rule.

(1) applies in general
(3) applies more specifically to individuals selling their personal property

Not entirely correct....if cart has been modified or can exceed 20/25mph it does require registration and and I believe insurance. As always, I stand to be corrected

The Florida definition of a golf cart requires that it is not capable of exceeding 20mph. It could be argued that if the vehicle has been modified to exceed 20mph then what is being sold is not a golf cart.

And yes, since Florida law requires registration for a Low Speed Vehicle capable of exceeding 20mph but not 25mph, that sale would appear to not qualify for an exemption. WRONG: It appears that under Florida rule 12A-1.037(3), the private sale of a vehicle required to be registered would not be taxed at the sale. It would later be taxed when it was registered but the private individual would not be required to collect the sales tax.

Also, a recent change to Florida law now requires an operator under 18 to have a valid learner's permit or driver's license (which a 14 year old would not have).

I like that “ Balderdash”, I haven’t heard that in years.