I am LIVID about what I found out today that might cost me an extra $1200

[JohnR]

I recently bought a new car for the bride, traded hers in for her and almost happily paid the sales tax difference between the cost of the new car and the value of her trade in. So for arguments sake, we'll say the new car was 15000, her trade in was worth 5000, meaning I paid the 7% sales tax based on the difference of 10000 dollars. Hey it was $350 cheaper because of the way the law is written. Didn't need to trade it but I'd rather my wife & son be in a new car than something with the miles creeping up and out of warranty.

Now, these rebates and all are so nice to factor in so I'm thinking I can trade my 03 Z71 truck for a new F150, pay the sales tax difference out of pocket, figure 700 or so, and be on my way in a new truck for less than $20 per month over my old one, right?

Horsecrap - the state of Tax Island does NOT credit you for tax paid on a truck versus buying a new truck. Unlike Mass and many other states that consider some vehicles as personal vehicles, Tax Island requires FULL payment of this tax. Even though the truck is used for PERSONAL transportation. A car so to speak with 4WD and a place in the back for my fishing rod and for all the kids at school to throw their trash in when they walk by. NOT a commercial vehicle!!!!!

So this draconian tax law is going to COST me an extra $1200. Many other states (about half) have altered their tax law paying the difference between the trade and the new, most do it for regular passenger cars but Rhody does not

I need people to help me come up with a good name for a website to show this displeasure with RI for this instance of lousy tax practice!!!! Like RITAXEDTRUCKSSUCKS.com WTH can't they get with the program!!!!

[fishweewee]

RI = tax and spend

[BigFish]

That stinks JohnR....not surprised though!

[Karl F]

I remember reading an article in the Providence Journal years ago... the 5 levels of Govt. in RI...
1.) The Mafia (Patriaca Family)
2.) The Catholic Church
3.) The "It's who you know" System
4.) Buddy Cianci
5.) The State Govt.

1., 2., and 4. are all out of power now.... so....
who do you know???

That sucks John, be nice to get that law changed.

[MakoMike]

John,
It was written up in the projo about a year ago. I agree its a bum deal. If I were buying a new truck I'd buy it out-of-state and have the dealer list only the net price, then when you register it in RI how they gonna know?

[KLMulder]

I deal with this at work every day. Last time I looked we are 1 of only 10 states that still work the tax this way. Buying out of state will not get you around the tax law as the dealership has to report all the paper work to the state before it can be registered. If they see one that is to far out of the norm and find anything funny they can and will fine the dealer. Dam tax and spend state.

[MakoMike]

Mulder,
Re"the dealership has to report all the paper work to the state before it can be registered. If they see one that is to far out of the norm and find anything funny they can and will fine the dealer. "

A dealer in CT or NY or MA doesn't "have to" report anything to RI. And how is RI gonna fine him is he isn't even in the state? I could buy the truck in Texas, then what are they going to do?

[JohnR]

When you register it in Rhody and give them your Mass title, you might need to pay tax then!

[MakoMike]

John,
I'm sure I'll have to pay some tax, but if the dealer's invoice only shows the net price I'm guessing that's what they'll charge me on. As much as I mind paying any tax at all, I ain't gonna pay them on the gross price. I might go to NY or NJ and get a better price.
You can buy truck over the internet from just about any state, the only thing you have to watch out for is that in NE most states have adopted CA emissions standards and a lot of the dealers in Texas don't carry models that meet those standards.

["uffah!!"]

Just remember, there are only two things you have to do in this world. Thats DIE and PAY YOUR TAXES!

[Crafty Angler]

Hey John - just grab your ankles and brace yourself - be glad you don't own rental property with the new Lead Mitigation Law.



Yup, brought to ya by more goombahs in the state senate from Nort' Providence. Hey, they gotta keep their families and friends working.

[gf2020]

You'll get killed on the depreciation trying to trade-in a 2003 Chevy for a 2004 Ford. It will cost you a lot more than $20 per month to make that move.

[JohnR]

Originally posted by gf2020
You'll get killed on the depreciation trying to trade-in a 2003 Chevy for a 2004 Ford. It will cost you a lot more than $20 per month to make that move.

Not when you are as good at grinding the front end and the back end of a deal as I am

I went from an 03 Silverado Ext Cab LS Z71 4x4 31K miles (stickered 32&change that I bought extremely well) to an 04 F150 XLT SuperCab 4x4 (stickered 33). I went from 388 / month with 3.9 to 412 per month @ 4.3 with only 700 Out of pocket, including the tax (which still had to be paid ). Did not put down anything more, did not change the length of contract, did not do a balloon payment, did not a do a "Smart Lease" or a "Smart Buy". I was just good enough AND lucky enough to work beyond stupid on the front end and beyond stupid on the trade. Something to be said for a spot buy & drive on the last night of a lousy sales month for the dealer. The extra 25 per month was worth losing 30 something miles on the vehicle. But I will miss the Chebby too... (Oh Yeh, coulda done the same numbers on a new Z71)

Originally posted by MakoMike
John,
I'm sure I'll have to pay some tax, but if the dealer's invoice only shows the net price I'm guessing that's what they'll charge me on. As much as I mind paying any tax at all, I ain't gonna pay them on the gross price. I might go to NY or NJ and get a better price.
You can buy truck over the internet from just about any state, the only thing you have to watch out for is that in NE most states have adopted CA emissions standards and a lot of the dealers in Texas don't carry models that meet those standards.

If you buy a vehicle out of state and then need to register it in state, I believe you'll need to still pay a tax when you bring it in. On the dealer invoice - I looked into this a little - they would still need to seperate the trade from the new on the RI Tax form. Now, even on a trailer, if you bring a vehicle in from another statre, you need to prove registration and that tax was paid - it sucks - went thru that with my trailer. You're not going to buy a truck in another state, register it (pay their tax & title) then bring it to RI and expect to save any money. Sadly the only way to get around this is to change the tax law in the first place. Maybe make "Passenger" trucks use auto plates and "commercial" trucks comm plates.

[MakoMike]

John,
When I brought my present truck into RI I didn't have to pay any tax, just showed them that it was registered in CT. CT only charges tax on the net price. So if I buy a truck in CT and register it in CT and then bring it into RI, I'm only paying tax on the net price. No?

[STEVE IN MASS]

And then you wonder why I was at the lack of my preffered presidential candidate being listed on the Poll Thread.......




There IS a way out fellas, if only more people would recognize it.............

Kinda funny that this all transpired just after Independence Day weekend......

[Slipknot]

"(Oh Yeh, coulda done the same numbers on a new Z71)"