23 May Is the sales tax charged on this car double-taxation?

Q. Why does New Jersey collect sales tax every time the same car is sold? Isn’t that double or triple taxation? To me, that should be illegal.
— Driver

A. These days, it’s hard enough finding a new or used car at all, much less at an affordable price, thanks to supply chain issues and inflation.

But still, the state will get its due.

If you buy a car in New Jersey, you need to pay sales tax and other fees when ownership is transferred, said Altair Gobo, a certified financial planner with U.S. Financial Services in Fairfield.

He said the state assesses a 6.625% sales tax on the purchase of a new or used car.

“Since it is a `sales tax,’ New Jersey is taxing you, the buyer, on the purchase of an item regardless of how many times that car is sold,” Gobo said. “It is each sale itself that is taxed.”

The buyer is responsible to pay the sales tax when they register the car in their name, he said.

Good luck with your wheels.

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This story was originally published on May, 23, 2022.

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