Taxes on selling racecar in NY state?

If you are buying from a private person and not a dealer, and the car cannot be registered, there is no tax for the buyer, regardless of what state the buyer/seller is of residence.

If you are a NY resident, and buying from a NY licensed dealer, you will have to pay sales tax, regardless of the car not being able to be registered.

If you are buying from a NY dealer, and you are NOT a NY resident, there is no sales tax since you live out of state.

Hope this helps

 

If you are buying from a private person and not a dealer, and the car cannot be registered, there is no tax for the buyer, regardless of what state the buyer/seller is of residence.

Not true - the rule is any purchases made by a NYS resident regardless of where the purchase was made is subject to sales or use tax. If it is a private sale - the purchaser is required to pay the use tax (same as sales tax) if the purchaser is a NYS resident.

See line 59 of your NYS IT-201 tax return.

Here are the instructions to Line 59:

Line 59 – Sales or use tax
Report your sales or use tax liability on this line.
You owe sales or compensating use tax if you:
• purchased an item or service subject to tax that is delivered
to you in New York State without payment of New York State
and local tax to the seller; or
• purchased an item or service outside New York State that is
subject to tax in New York State (and you were a resident of
New York State at the time of purchase) with subsequent use
in New York State.
Note: You may be entitled to a credit for sales tax paid
to another state. See the exact calculation method in the
instructions for Form ST-140, Individual Purchaser’s Annual
Report of Sales and Use Tax.

That is the law - the reality is virtually no one ever pays the use tax.

 

I stand corrected..forgot about use tax!

 

That is correct.