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Cars and Transportation
Reply to "Sales tax and/or excise tax?"
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[quote=Anonymous][quote=Anonymous]My husband and I cannot figure this out despite much googling (and law degrees but those consistently prove themselves useless)... We are looking to buy a new car very soon - the car will be registered in DC. We know we will pay 6% DC sales tax on the car because it will be registered there, but then when we look at DMV fees we see that there is (also?) a 6% excise tax. So do we pay essentially 12% tax on the purchase, or does the “sales” tax we'll pay at purchase cover the “excise” tax the DMV would otherwise collect? Thank you in advance to anyone who has gone through this and can answer for us!![/quote] Excise tax is in lieu of sales tax. IIRC, the rate differs depending on the weight of the vehicle in DC.[/quote]
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