Vehicle sales tax

Joined
Jul 18, 2010
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Southern Missouri
hi, I will be buying my new F150 next week. My question is regarding sales tax. I live in Missouri. DMV is currently closed so I cannot stand this question till later.
in the past, when I have traded in a car, it saves me the difference on sales tax when buying a new car. I have been told by a friend that if I sell my used car privately, I can take the bill of sale and deduct that from the new car price when registering my car with the local DMV. I have searched the Missouri DMV website with no answer regarding private party sales. Any input? Thank you.
 
Joined
Jun 15, 2003
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ME
If you pay the sales tax (in full) to the dealer it would take a leap of faith that the state would refund some to you later if you present a bill of sale.

Typically you only get the refund if the dealer does both ends of the deal.

Can you pull up a MO sales tax form pdf and see if there's a section for credit?
 
Joined
Dec 21, 2009
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WPB, FL
What you suggest sounds logical and reasonable but who knows what the government thinks about it! I would look it up on the DMVs site so I had it in writing.

The tax reduction at the dealer is pretty common and they use it as a sales tactic vs selling privately.
 
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Mar 17, 2011
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High Country of Western NC
Unless someone from the Missoui DMV is on this board, I'd be afraid to take a chance on it without an official answer. I know in my state (NC) you only pay sales tax on the trade difference when you trade a vehicle in to a dealer, but here if you sell privately and buy another, they are treated as two separate transactions. Here if you sold privately, you would pay tax on the full purchase price. Hope you get a good answer from Missouri, but I wouldn't take anyone other than DMV's word on it.
 
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I'm surprised some state does not consider the sale of a vehicle as income and find a way to tax you on that too. [joking, of course]
 
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Joined
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Lake County, Ohio
I have read that some states do allow the tax savings if sold to a private owner but the new vehicle purchased must be registered within a certain number of days if I recall.

Best advice is to check with your states BMV or DMV as stated above.
 
Joined
Apr 17, 2004
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Texas Hill Country
In texas you only pay sales tax on the difference between the new car and the traded in car.

A lot of dealers use this as marketing but its law.

For instance if a new car is 20 grand and your trade is 5 grand, you would only pay sales tax on 15k.
 
Joined
Mar 8, 2012
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Missouri resident here. What you are saying is correct and I’ve done it numerous times. One local DMV was incorrect on their interpretation of the rule. I bought a Lexus in 2012 and paid the sales tax when I registered it. I then sold my Dodge Ram on craigslist a few months later. I submitted the bill of sale and a certain form and the state sent me a check back so my actual net sales tax was on the few thousand dollar difference between the Lexus purchase price and the Ram sale price.

If you can avoid buying that truck until after the first of the year it will push back you owing personal property tax on it until year end of 2024.
 
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Is this 'personal property tax' in addition to sales tax?

Yes. It is owed on anything with a title, and some business personal property as well. I get to send a check for $3,000 this week to St. Louis county for vehicles I own outright and have already paid sales tax on. What a scam. So if the OP buys a new vehicle before year-end, he will owe the tax at the end of 2023. If he waits to purchase it until Jan 1, the it would be on the end of 2024 taxes. It’s tied to the value of the vehicle so if he’s replacing something that isn’t worth much, it’s best to wait a few days to save himself hundreds if not a thousand or more dollars.
 
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Joined
Feb 21, 2003
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Chicago
I'm surprised some state does not consider the sale of a vehicle as income and find a way to tax you on that too. [joking, of course]
Here in Hellinois even if they start taxing our taxes it's never ending or enough.
 
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