totaled car - paying sales tax again! (TN)

This is correct and why my insurance agent always factors in the tax burden into the agreed value amount for that vehicle. Consider talking to your insurance/agent and asking about how they cover the taxes in case of a total loss.

 

And this is why so many people go the MT LLC route; the states are way to greedy. I don’t mind paying my fair share of taxes but that is over the line.
Do a Montana LLC and keep ownership that way for a year and then transfer it to yourself in TN. You own the car for a year in the LLC or whatever time you choose(state laws very). since you are the ‘owner’ of the LLC there is no taxable value selling it to yourself as an individual.

 

Yes this is accurate, you’re buying another car so they’re gonna tax it.

In CA, any motor vehicle is taxed upon sale. So it could be a 1965 motor vehicle that’s been sold 25 times and each time it’s taxed at 9 3/4%.

Yes it seems really unfair.

AZ doesn’t tax them if sold used in AZ.

 

I have no love for paying taxes but if you buy a new toaster and it breaks, you buy a new one and pay the tax.
Why would a car be different?

You want to fix it, elect politicians who wont spend your tax money like its a democratic presidential campaign contribution.

A billion + in 3 months. Good God did we dodge a bullet.

 

Totaling a car is not the same as trading one in. Got ya beat though...When I moved from Ohio back to my home state of GA, I had to pay the full Ad Valorem taxes on 5 cars, even though I paid sales tax on them in OH. They've since reduced the taxes on new residents (no retro ), but it was thousands upon thousands just to register the cars I already paid thousands in taxes on. The government has you permanently bent over no matter where you live.

You didn't total your car already, did you?

 

I understand it is tough to pay sales tax on a new car (I've had 2 cars stolen that I had to replace), but it wasn't the state's fault the car was totaled. Why should the state be responsible?

 

My 360 Spider was totalled last Nov. Insurance paid me the "replacement value" plus sales tax. You insurance should have also no? I'm in Calif