Sales tax if trading in an embroidery machine.
#1
Senior Member
Thread Starter
Join Date: Jul 2010
Location: Seven Lakes, NC
Posts: 469
Sales tax if trading in an embroidery machine.
I live in NC and am interested in trading in my Babylock Ellissimo Gold II for the new Babylock Destiny. But....the dealer tells me I would be charged sales tax on the total selling price of the new machine, not the difference. Do any of you have information or experience about this?
Thanks,
Jo Ann
Thanks,
Jo Ann
#2
This is probably because when he bought the machine wholesale he has a tax # from the state and is exempt from the tax and passes that on to you then he has to pay it to the state on a monthly or quarterly report. They don't care about the trade in like a car. He is not making any money on the tax he charges you he has to save that and pay it out. I have done accounting all my life and this how it works in AZ. I hope this helps you understand. When and if he sells your trade in I don't know how that works.
#8
Unfortunately, Jo Ann, that is the way NC is currently set up. If I am not mistaken, you have to pay full sales tax on a vehicle in NC too. I do believe there is still a cap (max) on them, but nevertheless...
BTW-my sis and aunt both live in Seven Lakes!
BTW-my sis and aunt both live in Seven Lakes!
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