Quote:
Originally Posted by madmaxx
Simple, the first time a car is registered, zero taxes, the second and each subsequent title 6.25%. When GM and Ford sell cars they dont pay taxes, the second owner you pays the taxes when you buy.
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First of all, GM and Ford are recognized by the State's taxing authrity as manufacturers, not owners. The guy who buys the new Ford truck is the first owner and he must pay sales tax in Texas. In Joe's case, if the guys who built the LCS raffle car hand him the FFR MSO, he has a decision to make about what he represents to the local tag agency.
Go here and read the sections entitled "Awards/Prizes" and "Tickets."
Motor Vehicle Manual
You're gonna pay some sales tax on that car. And if the folks at LCS do it right and report your winnings to the IRS, you are going to pay some income tax (at your withholding rate):
http://www.irs.gov/pub/irs-tege/notice_1340.pdf
Edit>> On the subject of what you pay when you buy a car cheap from out of state and bring it here, Standard Presumptive Value Applies:
Standard Presumptive Value