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Question

Question Details

Asked: Jul 01, 2008 - 07:23 AM

Status: Closed

nova85

Do you pay sales tax on the destination charge of a new vehicle?

For example, if a car costs $20K and destination charge is $500. Do you calculate sales tax on the $20K (20,000* 7%)or on $20.5K (20,500 x 7%)?

In Buying & Selling > Car Buying > Taxes
1 answer - 512 days ago

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Answers

volvomax

Date: Jul 02, 2008
Time: 11:21 AM

Edit Answer (for another -4 minute)

You pay sales tax on the price YOU pay for the car, whatever that price may be.
Now, if you are paying MSRP for a car, then you do pay tax on the destination charge because it is part of the MSRP.

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