Personal use tax

I may be mistaken but the People's Republic of California tried to use the "used tax" on folks bringing autos into the state when they moved here. They did it at the time of registration. Wasn't long lived if I remember correctly.

So is this effective immediately? I'm shipping a car down next month and it will be one less thing to worry about and a bit cheaper than I planned.

I remember that, California charged $300 for cars brought in from other states and the courts made them stop.

Illinois charges a tax when you transfer registration on an automobile, Makes no difference it you sell it or give it to someone in the family. Everyone pays.

Jim

A use tax happens here in Cal also when used cars are sold between anyone. The problem with what was originally posted was, that it penalizes folks in IL who might decide to move to Cal, in that when they went to register their car they had to pay a fee or a tax.

If you bring a car into IL from anywhere and register and plate it in IL you pay a tax based on the blue book value but no less than a minimum amount per model year.

Politicians love their taxes.

Jim

I heard that as of last Friday the government was not imposing the tax on vehicles coming in, but the government may also file an appeal of the ruling and in the process try to get a stay on its implementation.

Besides stopping the propspective collections, it looks like those who paid in the past are entitled to a refund as per the ruling, so maybe the gov't will come up with a refund process rather than forcing people to sue (though I understand that the same attorney who argued the suit may be filing a class action on behalf of those who paid.)

Ilo

The ruling did say they have to stop collecting...lets see just how bad they want to squeeze people....after all, they have govt owned private vehicles to buy for themselves...

Thanks Islandlola! That's the answer I needed.

Sorry to be cynical but what's to prevent them from just calling it something else & still sticking you with some fee?

Trade - well, of course they will. If they can't collect a tax one way they'll keep at it until they find a way to do it. That's not cynicism, it's historical reality.

Everybody says "they" when referring to the government. Fortunately (or unfortunately) the government is "we" and probably should be referred to as such -- We the people.

Linda - I think that for many people, saying "they" refers to actions taken by government officials that is seriously contrary to the beliefs of the person talking. Many Americans feel disenfranchised to some degree. Yes, we elect officials, but those officials don't often represent us quite the way we'd like. Also in the case of the USVI, "they" can refer to the elected officials who are more interested in lining their own pockets than in serving the public good. That is not part of "we the people". There are an elite few who will ever be in those positions of power in government. Referring to them as "they" pretty clearly indicates that the person talking doesn't see any chance of ever being one of them or in influencing them greatly.

Or the person speaking feels no connection to "them". And that can certainly happen anywhere.

And until we have numbered seats, at minimum, we will be disenfranchised. Our illustrious legislators don't feel they need to represent everyone.

As a sideline, I would love to see someone file suit against the gross receipts tax!

Amen to East Ender on both points. We may not have a sales tax but it's certainly built in.

Boy, I'd love to see an end to the gross receipts tax! I was told by a manager at the BIR to file my tax return as always but pay whatever the bottom line came to in the USVI. so I did. Then I got a notice saying I owed gross receipts tax. So I paid it, too. Ouch. Then I got a notice saying that I wasn't supposed to file my tax return as instructed after all but was supposed to send the tax to the IRS and that self-employment tax doesn't get paid to the BIR. They didn't give back what I had paid, of course, and still expected that I'd pay the tax again to the IRS. What a mess. It takes forever to clean up messed up tax returns that were filed according to instructions directly out of the BIR office.

For Realtors and many other self-employed people, the gross receipts tax came as a very unpleasant shock. We don't pay the same amount of tax as we have before for the same income. Now we pay another huge tax on top of that. Even with paying sales tax in Washington State I paid a lower percent in total taxes than I do in the USVI. Just an illustration that governments tend to find a way to collect the taxes they wish by creating whatever tax they think they can get away with.

You want gross receipts tax, come to Los Angeles City. Ever wonder why most of the entertainment companies and post production companies hang around Burbank or Glendale. Yeah, the gross receipts tax of LA City. I love buying from suppliers in LA CIty who I know also pay the tax. Then when I sell the product forward to a client I have to pay it.

It's about $1.10 per thousand of gross sales, so not that intrusive, but just another of those annoying govenment taxes.

promo: Here if you are importing items for resale, they get gross receipts from BOTH the wholeseller and the retailer. Also, as Alexandra pointed out, if you are self-employed, you have to pay income tax and file gross receipts. There is an exemption for the first $5000/month, but if you are successful, it is a double taxation.

I shipped a vehicle to STT in 2005 and was charged $572 (4% Personal Use Tax). Can anyone direct me to the USVI govt department where I can inquire about getting my refund? .Has anyone else called yet to find out the process? What was their answer? ....yes, I know the USVI is thinking about appealing the decision so that might be the answer. If the amount was less than $100, I'd probably let it go (too much pain and aggravation). But, for $572, I'm willing to go the distance. Thanks for your help!

This would apply to anyone who has purchased a car. New car dealers add the 4% to the sticker price.

Jim

Huh? New Cars? What constitutes a "new car"? This wasn't my understanding.

FL Barrier islander, I think Jim Dandy means that in addition to your situation, everyone else who purchased a new care while that 4% personal use tax was levied may also wish to seek a refund, since those people also paid 4%-- it was added to the purchase price of the new vehicle.

AH! Thanks Jules! ok. My questions still stand. Anyone?