Quote:
Originally Posted by spazzyfry123
I don't think I swing in any particular direction on the Montana deal. I get both sides. But THIS is something I have never understood. A $100k vehicle sells and is taxed. Okay, I get it. But the original owner sells it in a private sale to another individual for $75k. The new owner now needs to pay the same sales tax against $75k. Assuming a 7% sales tax (like here), they have now collected 12%+ worth of sales taxes against a $100k vehicle.
I buy a new Playstation. I pay my sales tax. I'm done playing video games and sell it on Craigslist - no one is collecting sales tax for that transaction. I'm not advocating to tax these other private sales, just proving a point...
Anyway, back to the Montana bickering...
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Technically speaking, you are supposed to collect sales tax on it and give it to the government. But because it's a paltry sum that's done under the table, it's not worth the effort. If you made a business of buying and selling PlayStations on the other hand, the government would eventually figure out you're screwing them out of sales tax and come after you. Hence why GameStop charges sales tax on used games and PlayStations.