Quote:
Originally Posted by Apache
Georgia recently passed a law requiring any non dealer, selling a vehicle, to collect sales tax. This was because most buyers were not voluntarily paying the sales tax as was required by law. There was a huge uproar from the public and the law was repealed.
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That's a silly way to do it. In TN you pay it when you get the new registration, and they have safeguards in place to ensure they get a fair amount. (For example, if you claim to have paid a ridiculously low amount, you must be directly related to the seller to pay the tax on only that amount. My mom was able to transfer a car to me for $1, but if we were not related, it would have been taxed at the value of the car.) I think Maryland does the same, or they used to.
And since I lost the multi-quote I thought I had, regarding individuals paying the OOS tax owed - some states aren't even set up to collect it, while other states go absolutely NUTS in their pursuit of that revenue. TN and FL are like polar opposites.
TN has some vague laws in place (if you know where to look, most don't), but don't make any effort to make people aware of it or to collect it. Most of the revenue collection here is focused on local commerce, property taxes and business taxes / fees. I suspect that they know any money spent to support / enforce "voluntary" reporting of OOS purchases would not pay off.
FL... They have TV spots around tax time reminding people about which forms to use, and how much jail time they can face if they don't do it. They send out mailers with the same information. It's not only for online / mail order purchases - if you go on vacation to a state with a lower sales tax, you have to pay the difference on anything you buy and bring home. They make sure you know this. I'm surprised they don't have their own "interstate customs" officers at the airports and borders.
I was pretty broke while living there, but I made sure to send in my return - for a whopping total of 86 cents. I mostly did it because I knew it would cost them more than that to process the damn thing.