I don’t know about any other state but here in Nebraska you pay sales tax on any car you license, you also pay a “property” tax on it every year. You pay sales tax on every sale, though you can transfer ownership between entities owned by the same person, I.e. from a Corp. to an LLC or from either of them to yourself personally, though you have to show proof that it’s you and your Corp. or LLC. Face to face private transactions or sales from out of state you still pay sales tax on the purchase price or a listed taxable value if the taxable value is higher. On a trade you pay sales tax on the trade difference regardless of whether it’s a dealer or Joe next door. Property tax is refundable if you turn in the plates, registration, and bill of sale as long as it is not in the last quarter of your tag due year. If you trade, the remaining tax on your trade gets credited to your new vehicle. They got it figured out. You can buy a new car one day, pay all the sales and property tax and move to another state and get a refund of ZERO! New state of residence gives you 30 days to ante up on their tax scheme.
The old saying is absolutely true: “The only absolutes in life are taxes and death!”
The tax on firearms, archery equipment, and ammunition is a Federal tax, Pittman-Robertson. It goes to fund wildlife preservation and related projects. It’s paid once, been in place since I think it is the ‘30s. Sales tax is just that, Sales tax, it is a State one or a local entity tax. Some items are exempt here some ag production equipment and supplies and raw food products, those that are not ready for consumption as purchased. Some medical items. Otherwise, YOU PAY!
Guns, ammo, and all associated items are taxable, even if you are a dealer with a tax exempt certificate and number. If you use products you bought wholesale for retail taxable sale for yourself you are obligated to pay the sales tax on it too. I had a customer who got into big buck trouble because they didn’t do that. Really big bucks! Interestingly, later timeline, many products they didn’t pay tax on were made exempt. Had to produce paperwork, pay back tax, penalty, and interest on it all!
GOTCHA!
BP