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Agreed.Originally Posted by NigelM
Refer to How do I Calculate a Tax, Tag & Title in Florida?
There is a 6% State Sales Tax and a Discretionary Sales Surtax (county tax) that varies by county. Some counties do not have a tax.
Discretionary Sales Surtax Information
For Calendar Year 2012
Only the first $5,000 of a taxable sale or purchase is subject to the discretionary sales surtax.
Larry
In our case, will the county be determined by where we live, or where the dealer is?
Hi Ron,
From documents that I referenced in my previous posting.
What Is Discretionary Sales Surtax?
Discretionary sales surtax, also called a county tax, is imposed by most Florida counties and applies to most transactions subject to sales tax. The selling dealer must collect the surtax in addition to Florida’s general sales tax of 6 percent. The discretionary sales surtax is based on the rate in the county where you deliver taxable goods or services. A few counties do not impose the surtax.
Discretionary sales surtax collections are distributed to local governments in Florida.
The amount of money distributed is based on how you complete each tax return. Dealers should impose the discretionary sales surtax on taxable sales when delivery occurs in a county that imposes surtax. For motor vehicle and mobile home sales, the selling dealer must collect the surtax at the rate imposed by the county identified as the purchaser’s residence. Only the first $5,000 on a single sale of tangible personal property is subject to discretionary sales surtax if the property is sold as a single item, in bulk, as a working unit, or as part of a working unit. However, the $5,000 surtax limitation does not apply to commercial or transient rentals or sales of: services, admissions, service warranties, or prepaid calling arrangements.
Larry
Last edited by Larry Chanin; 09-08-2012 at 10:07 AM.
Where we live ( or address we register the car).
The tax incentive is federal so if you are in the 30%+ brackets you in essence get a third of your state sales tax back in savings from the federal deduction barring heavy AMT. Anyone who is a tax professional, please correct me if I am wrong.
Hmmm....I thought that sales tax deduction expired after last year. Can you show where it was extended? I thought the others were talking about county surtax, but you seem to be talking about sales tax as a whole.
Ron,
I gather from this Wall Street article that the issue has not been resolved.
Will Sales-Tax Deduction Live On?
LarryQ: Is there any hope that Congress will extend the sales-tax deduction on our federal income tax returns for 2012 and on?
—B.W.B., Lake Worth, Fla.
A: Yes, there are good reasons to be hopeful that lawmakers will extend this provision that expired at the end of last year. This law has long been very popular, and Florida is an important state in this year's elections.
"The sales tax deduction is likely to be extended" for 2012, says Tim Hanford, a consultant in Bethesda, Md., and a former tax staffer on the House Ways & Means Committee. But he says Congress might not act this year until after the November elections.
Taxpayers who itemize their deductions can either deduct the general state and local sales taxes they paid or deduct state and local income taxes.
This law is particularly beneficial for people who live in Florida, Texas, Washington and other states that have no state income tax. But it also helps taxpayers who wind up owing very little in state and local income taxes.
Crunch the numbers both ways to see which works best for you. If you claim the standard deduction, this provision won't apply.
The staff of Congress's Joint Committee on Taxation (www.jct.gov ) recently issued a publication listing tax provisions that are scheduled to expire through 2022. Look on the committee's website for Publication JCX-1-12, dated Jan. 6, 2012.
Yes, I read this--7 months ago. Everyone would have expected it to be extended by now, and the way the election is shaping up, I have my doubts that it will
Ron,
Perhaps, but seriously what savvy politician would pass on extending this in an election year? Haven't you observed that everything now is reduced to brinksmanship? Isn't this counterproductive partisan approach what cost us the AAA credit rating?
Larry
Yes to your 2nd and 3rd question, but if it hasn't been extended already, I doubt it will be extended before the election.Ron,
Perhaps, but seriously what savvy politician would pass on extending this in an election year? Haven't you observed that everything now is reduced to brinksmanship? Isn't this counterproductive partisan approach what cost us the AAA credit rating?
Larry
Here's the Senate bill to track:
Family and Business Tax Cut Certainty Act of 2012 (S. 3521) - GovTrack.us
Considering it's lumped in with some very controversial tax cuts, I'm not optimistic.
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