SC Sales Tax Question

[CV355]

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[IronSnake]

I went to the DMV yesterday afternoon to swap plates. I traded my '14 GT500 in towards an '18 GT a few weeks back, and just got the doc package in the mail.

The DMV wanted to collect $500 in sales tax. I walked out, called the dealership, and was informed that since the value of my trade-in was worth more than the vehicle I was purchasing, the "total sale value" was negative, so no taxes should be collected.

The DMV is still to wanting to collect $500 in taxes even though I technically spent no money, and the state does support sales tax credit on trade-ins. Any advice on this?

Just got hit with a 786 dollar tax bill on my new truck.

They assess it based on MSRP. So I think the dealership is wrong in their assessment.

MSRP of the GT at 46,000 is more than say the depreciated value of a 5 year old car. Which the state doesn't really care it's a collectors item. That's why old cars are 15-20 bucks usually in SC.

 

[CV355]

Just got hit with a 786 dollar tax bill on my new truck.

They assess it based on MSRP. So I think the dealership is wrong in their assessment.

MSRP of the GT at 46,000 is more than say the depreciated value of a 5 year old car. Which the state doesn't really care it's a collectors item. That's why old cars are 15-20 bucks usually in SC.

Oh, that's with property tax. The issue I'm having is the sales tax side, which they supposedly base off actual sale numbers, so the box on the sale form they'd normally base the sales tax off is negative $7500. They don't encounter it often where someone "trades down" but it made sense to pay down my medical bills.

 

[Coosawjack]

Sales tax is assessed on the value of the newly licensed vehicle regardless of trade value...$500 max which is a GOOD THING!!

 

[GodStang]

Sales tax is assessed on the value of the newly licensed vehicle regardless of trade value...$500 max which is a GOOD THING!!

I thought it was Property tax was on assessed value and Sales tax was on Price paid up to $500. I have bought a car for $1 and not paid much sales tax.

Are you sure they saw it as $7500 and not negative $7500. Did the dealership mess up paperwork?

 

[Coosawjack]

"Value" may be the wrong term......"Purchase Price" is what they look at!!

Perhaps the dealer screwed up the paper work but I don't think the state would consider a negative purchase price anyway??

OP should call Columbia and get some straight answers......most at the local offices are full of BS!!

 

[mysticsvt]

You did what? 14 GT500 for a 18GT? Lord I would trade my mint 11,000 mile 600rwhp Comp Orange GT for 14 GT500 in a heartbeat.

 

[CV355]

I thought it was Property tax was on assessed value and Sales tax was on Price paid up to $500. I have bought a car for $1 and not paid much sales tax.

Are you sure they saw it as $7500 and not negative $7500. Did the dealership mess up paperwork?

Dealership was in GA- I called and verified, and they were correct. Overall I was really impressed with the professionalism at that place. Total cash was negative $7500.

"Value" may be the wrong term......"Purchase Price" is what they look at!!

Perhaps the dealer screwed up the paper work but I don't think the state would consider a negative purchase price anyway??

OP should call Columbia and get some straight answers......most at the local offices are full of BS!!

I called Columbia 6 times today, sat on hold, got disconnected. Going to try again tomorrow

You did what? 14 GT500 for a 18GT? Lord I would trade my mint 11,000 mile 600rwhp Comp Orange GT for 14 GT500 in a heartbeat.

Yeah, traded a '14 GT500 for an '18 GT Premium. I never liked the TR6060 and clutch combo, really made me never want to drive a manual again, especially with retarded SC traffic. Being back in an auto and dealing with stop & go while Greenville takes 10 trillion years to figure out their highway mess is so much nicer. I thought I'd miss the '14 GT500 more, but I don't. I miss the exhaust, that's it. If I lived back in rural CT, the manual would be fun, but SC drivers are the worst I've ever encountered in the entire US, and driving manual around here is only fun in the mountains.

The wife loves the GT too. All around, no regrets. And the cost differential was enough to cover the cost of my medical bills from surprise BS surgery in April. Been losing around $4000-$6000 a month due to various bullshit since April 2017, so we're liquidating where necessary to keep the finances safe. If it continues into 2020, I'm moving to Colorado and signing up for euthanasia.

 

[mysticsvt]

Enjoy! I think often about getting a 14 GT500 but think I would rather shoot for the GT350 19/20. Few years...we'll see!

 

[CV355]

Enjoy! I think often about getting a 14 GT500 but think I would rather shoot for the GT350 19/20. Few years...we'll see!

I loved the '14 GT500 when I took it for rides up in the mountains. Definitely. No regrets buying it. Around town, it was a chore. I hated how high the clutch bit by design, and how little friction zone there was, so dealing with SC traffic was horrible in the poor thing. Could I have modified it to suit my driving style, sure, but at that point I'd just want to 6R80 it and throw that TR6060 and clutch in a dumpster where it belonged. Manual purists can disagree with me, and that's fine, but I've driven plenty of MT cars that were leg-presses far friendlier than the '14.

I'm really enjoying the S550 platform though. It makes my 100 mile commute far more tolerable.

 

[mysticsvt]

I've had 2 autos, 2 5 speeds and 2 6 speeds. My last Mustang was a new 11 5.0 and after I hurt my knee in the Middle East on deployment and my shoulder here due to an 80 mph motorcycle fall it was hurting me to drive. I traded it in on a 13 FX2 F150. When I retired I sold my CO 04 KB Cobra. Few years later I picked up this current CO Procharged GT which is an auto. I think my next one will be a manual because I miss it. Being that it won't be a daily driver I think it won't hurt me as much. Still....an auto with a procharger is alot of fun!