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!!!!
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