Sales tax on kit cars

[Danr55]

Speaking of buying cars.. Skip, isn't your turn coming up soon? You should be having withdrawls anytime now.

[Car Nut]

Having an internet business, I deal with use tax all of time.

The law is clearly on the side of the state, when you purchase the item from an out of state company that did not charge you sales tax. But the tax should not be assessed on anything over the purchase price on a kit car you bought, save your receipt.

If you assemble the car yourself and buy local parts that you paid sales tax, you should not be assessed use tax on those items. Receipts would be helpful.

If you used parts that you had laying around, there should be no tax on those items and purchases from a private party should also not be subject to use tax.

If you live in municipality that charges use tax, then you are also liable for the tax on the same basis as the state tax.

[Bartruff1]

Originally Posted by Car Nut

Having an internet business, I deal with use tax all of time.

The law is clearly on the side of the state, when you purchase the item from an out of state company that did not charge you sales tax. But the tax should not be assessed on anything over the purchase price on a kit car you bought, save your receipt.

If you assemble the car yourself and buy local parts that you paid sales tax, you should not be assessed use tax on those items. Receipts would be helpful.

If you used parts that you had laying around, there should be no tax on those items and purchases from a private party should also not be subject to use tax.

If you live in municipality that charges use tax, then you are also liable for the tax on the same basis as the state tax.

This, the only thing I might add is that you don't want to commit fraud. The City would have easy access to the basis for the State's tax.

[Bill Bess]

If your original purchase order from the kit builder indicates that the motor and trans. were included (but not installed)as part of that purchase, the tax mightl more, or could be less than if you provide them with the separate purchase order for the engine and tranzs....get it!