Missouri Vehicle Sales Tax: What You Need To Know
Buying a car can be a daunting task for many people. Not only are you faced with the decision of which car to buy, you have to consider the associated taxes and fees. In the state of Missouri, one of the biggest fees you’ll need to pay is vehicle sales tax. In this article, we’ll go over what you need to know about Missouri vehicle sales tax.
What Is Vehicle Sales Tax?
Vehicle sales tax is a type of excise tax. It’s a tax that is imposed on the sale or transfer of ownership of a motor vehicle. The tax rate varies based on the state and the price of the vehicle. In the state of Missouri, the tax rate is 4.225%.
Who Pays Vehicle Sales Tax?
In Missouri, the buyer of the vehicle is responsible for paying the vehicle sales tax. If you’re buying a car from a dealership, the dealer will typically collect the tax from you and remit it to the state. If you’re buying a car from a private seller, you’re responsible for paying the tax directly to the state.
Where to Pay Vehicle Sales Tax
If you’re responsible for paying the vehicle sales tax, you’ll need to pay it to the Missouri Department of Revenue. You can pay it online or in person at your local Department of Revenue office. The Department of Revenue will also provide you with the necessary paperwork that you need to transfer ownership of the vehicle.
How to Calculate Vehicle Sales Tax
In order to calculate your vehicle sales tax, you’ll need to know the purchase price of the vehicle. The purchase price includes any additional fees and accessories, such as warranties or extended service contracts. Once you have the purchase price, you’ll need to multiply it by the tax rate (4.225%).
Are There Any Exemptions to Vehicle Sales Tax?
Yes, there are some exemptions to vehicle sales tax in the state of Missouri. For example, if you’re buying a vehicle for agricultural or business use, you may be eligible for a partial or full exemption. You’ll need to contact the Missouri Department of Revenue to find out if you qualify for any exemptions.
Do You Have to Pay Vehicle Sales Tax Upfront?
Yes, you’ll need to pay the vehicle sales tax upfront when you purchase the car. In some cases, the dealer may allow you to finance the tax, but you’ll still need to pay it before you can take possession of the vehicle.
What Happens If You Don’t Pay Vehicle Sales Tax?
If you don’t pay the vehicle sales tax, the state of Missouri can take legal action against you. The state may pursue criminal charges and can also revoke your driver’s license. The state can also take legal action against the dealer or private seller if they fail to collect the tax.
Do You Have to Pay Vehicle Sales Tax If You Don’t Live in Missouri?
Yes, if you buy a car in Missouri, you’ll need to pay the vehicle sales tax, even if you don’t live in the state. However, if you’re a non-resident of Missouri and you plan to register the vehicle in another state, you may be eligible for a partial refund of the tax. You’ll need to contact the Missouri Department of Revenue for more information.
Conclusion
Vehicle sales tax is an important part of the car buying process in the state of Missouri. It’s important to understand the tax rate, who is responsible for paying the tax, and how to calculate the tax. If you’re a non-resident of Missouri, you may be eligible for a partial refund of the tax. Understanding the tax laws can help ensure that you’re compliant and that you don’t get hit with any unexpected fees or penalties.
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