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Can someone explain "P/M Sales Tax" to me?
Posted on 4/11/13 at 1:24 pm
Posted on 4/11/13 at 1:24 pm
So I just transferred my vehicle registration to LA after recently moving back from out of state. I bought my car new in 2003, and paid sales tax on it at the time in that state, obviously.
But transferring my title/registration just cost me $320, and ~230 of that was MOTHERfrickING P/M SALES TAX. That's nearly 1% of the original sale price 10 years ago!
What is the rationale for this tax? Seems reprehensible.
But transferring my title/registration just cost me $320, and ~230 of that was MOTHERfrickING P/M SALES TAX. That's nearly 1% of the original sale price 10 years ago!
What is the rationale for this tax? Seems reprehensible.
2
Posted on 4/11/13 at 1:39 pm to 90proofprofessional
quote:
P/M SALES TAX
That means you were PWNED, MUTHAFRICKER!!
:rimshot:
But seriously, folks, I'm pretty sure that stands for "Parish/Municipality" part of the sales tax. It's separate from the state sales tax amount.
Posted on 4/11/13 at 1:44 pm to LSURussian
Makes sense, but it seems very wrong that they can effect a sales tax on a transaction that wasn't in the state, let alone the parish/muni.
Sure felt that way when I was walking out. I was expecting to pay something like $40, max
quote:
you were PWNED, MUTHAFRICKER!!
Sure felt that way when I was walking out. I was expecting to pay something like $40, max
Posted on 4/11/13 at 1:49 pm to 90proofprofessional
quote:I agree. I guess it's a way of preventing La. residents from getting around paying sales taxes by buying their vehicles from a dealer in a state with no or very low sales taxes and bringing the car back to La. If we could do that, La. car dealers would all go out of business.
it seems very wrong that they can effect a sales tax on a transaction that wasn't in the state, let alone the parish/muni.
I didn't know that the sales tax applied to a car bought that long ago though.
Posted on 4/11/13 at 1:52 pm to LSURussian
quote:
I didn't know that the sales tax applied to a car bought that long ago though.
Giving it a second look, it's exactly 5% of the car's taxable value now.
quote:
I guess it's a way of preventing La. residents from getting around paying sales taxes by buying their vehicles from a dealer in a state with no or very low sales taxes and bringing the car back to La. If we could do that, La. car dealers would all go out of business.
Can't wait to see what wonderful surprises await me when I go to transfer my driver's license!
Posted on 4/11/13 at 2:20 pm to 90proofprofessional
A part of many school systems's funding comes from sales tax on auto sales. I know when I bought my truck I had to call the LP school board instead of the tax office to find out what the correct rate would be. I guess they dont want taht money lost.
Posted on 4/11/13 at 6:59 pm to LSURussian
So the sensible solution would be "pay the difference", that way, the only incentive for someone to do this would be getting a better price from the dealer, in which the dealer would have a level field to negotiate on. Most people wouldn't go through all the hassle and transport fees unless the deal was just that good, an if that's the case, it's on the dealer.
I think LA does give you like a % deduction from certain states, but it's still nowhere near fair. I kept my car registered out of state until I got a new one. I still got screwed a little because the trade in wasn't deducted from the sales price to pay taxes on.
I think LA does give you like a % deduction from certain states, but it's still nowhere near fair. I kept my car registered out of state until I got a new one. I still got screwed a little because the trade in wasn't deducted from the sales price to pay taxes on.
Posted on 4/12/13 at 6:00 am to TigerDeBaiter
quote:
the trade in wasn't deducted from the sales price to pay taxes on.
so if I'm hearing you right you effectively still wound up paying ~5% on the old car?
(dick move, Louisiana.)
This post was edited on 4/12/13 at 6:02 am
Posted on 4/12/13 at 6:31 am to TigerDeBaiter
quote:
I think LA does give you like a % deduction from certain states, but it's still nowhere near fair.
Louisiana has reciprocity agreements with some states that allow you to pay only the difference between Louisiana's rate and the rate you already paid in the other state.
Posted on 4/12/13 at 9:08 am to 90proofprofessional
quote:
Makes sense, but it seems very wrong that they can effect a sales tax on a transaction that wasn't in the state, let alone the parish/muni.
Officially, it's "sales and use" tax. Therefore, don't think of it as a sales tax but as a use tax. And, it's based on the current value of the car. Most states give you some type of credit for the taxes you paid in another state -- but only for a certain time period.
Posted on 4/12/13 at 10:38 am to Catman88
quote:
I know when I bought my truck I had to call the LP school board instead of the tax office
The school board is the single sales tax collector. You were at the right place. Sometimes it could be the Parish or the Sheriff or the School Board. But they are the single sales tax collector.
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