Pennsylvania Sales Tax

[MarvBear]

Information from NADA Title & Registration Textbook 2004

 

Pennsylvania Sales or Use Tax Applicable to Registration

 

Rate-PA sales and use tax rate is 6%; a resident of the City of Philadelphia or Allegheny County must pay 7%. (7% rate includes a 1% local sales and use tax.) Military personnel are not exempt from tax. Dealers must collect a $1.00 tire fee on the sale of each new tire for highway use. TAX BASE – Sales tax is imposed on the full purchase price of the vehicle, less the trade-in deduction, if the trade-in occurs at the same time as the purchase of the vehicle. If a person purchased a motor vehicles LESS THAN SIX MONTHS prior to entry in PA, the full purchase price is subject to sales tax. RECIPROCAL TAX CREDIT – Sales tax credit is granted for similar taxes paid to another state based on the Sales and Use Tax Credit Chart. PA_Sales_Tax_Chart.pdf PAYMENT OF TAX – Tax payable to the Department of Revenue must accompany the documents submitted to the bureau of Motor Vehicles, PA Department of Transportation. ALTERNATE TAX BASE – PA resident or military personnel, that designates an address in PA as a home of record, may elect to pay tax equal to 6% (7% where applicable) of the prevailing market value of a vehicle, if the person purchased the vehicle six months or longer prior to first use in PA. NEW RESIDENT / NEW BUSINESS EXEMPTION – Motor vehicle registration made in connection with setting up a permanent business or residence in PA is EXEMPT from sales tax, provided the vehicle was purchase MORE THAN SIX MONTHS prior to first use in PA or establishment of business or residence whichever occurred first.