Overhaulin'

When you buy a car at online auction like ebay and the tax is figured?

Let's say you buy a chevy with a book value of 10000.00 in Pennsylvania where sales tax is 6%, but your auction closed at 1000.00. When you register the vehicle, do you pay on the paid-price or value? Would the buyer pay 600% as is 6% of ten grand or 6% of one thousand, the winning bid price?

Public Comments

1. You pay tax on the sale price in most states. However, if they have reason to believe you are playing games with the sale price, they may charge you tax on the book value. (You wouldn't believe how many cars are sold for $1 and it often backfires) Doesn't matter where or how you buy it.
2. it depends entirely on the tax laws of your state. If the state charges tax on the value then you pay 6% of the market value of the car, which could be even more than the $10,000 auction price. If the state charges tax on the actual selling price of the car then you pay 6% of $1000. You need to do some research before you go off and spend real money on something you know nothing about. Call your local DMV office and ask them. They are the authorities.