Dear Terry, When purchasing a car, is the sales tax dependent on the county you purchase it in, or the county you live in? -- SharonDear Sharon, Although I haven't researched the issue in all states, it's usually the case that sales tax is assessed based on where the car will be registered. This prevents dealers in one county losing sales to a dealer in an adjoining county because of a difference in the tax rate. This week•Used car buyers get less and pay more•Can I return my car without wrecking my credit?•Which county determines the sales tax on a car?•What if you just can't meet lease payments?If you have a question for Terry, e-mail him at Driving for Dollars. Save money on your car -- sign up for Bankrate's new weekend Car & Money newsletter advertisementRelated Links:Auto loan rates: March 26, 2009Saving on insuranceWhere's my car bailout?Related Articles:Vehicle leases going upOld loan not added to newCan't sell leased carRead more Driving for Dollars columnsAsk a question
Dear Terry, When purchasing a car, is the sales tax dependent on the county you purchase it in, or the county you live in? -- Sharon
Dear Sharon, Although I haven't researched the issue in all states, it's usually the case that sales tax is assessed based on where the car will be registered. This prevents dealers in one county losing sales to a dealer in an adjoining county because of a difference in the tax rate.
If you have a question for Terry, e-mail him at Driving for Dollars. Save money on your car -- sign up for Bankrate's new weekend Car & Money newsletter