Govplanet Sales Tax

[ARYankee]

I'm looking at a vehicle in another state on govplanet, and the other state's sales tax is higher than my state. I have read govplanet's sales tax collection procedure but it still isn't making too much sense.
I have read this part:
How do I obtain a sales tax refund or pay for an increase adjustment?If you have an exemption certificate that was not submitted at the time of sale:

• You can request a sales tax refund or adjustment from your My Account page:
  1. Click on “Adjust sales tax” in the Buying section and upload a valid sales tax exemption certificate.
• You have 10 business days from your date of purchase to submit a valid exemption certificate in order for IronPlanet to process a refund. After 10 business days, you will need to submit any refund request directly to the state for which the original sales tax was collected and remitted by IronPlanet.

If you transported your purchased item across state lines with a common carrier transportation company:

• You can request a sales tax refund or adjustment from your My Account page:
  1. Click on “Adjust sales tax” in the Buying section and upload a Bill of Lading.
• You have 10 business days from your date of purchase to submit a bill of lading in order for IronPlanet to process a refund or an adjustment. After 10 business days, you will need to submit any refund request directly to the state for which the original sales tax was collected and remitted by IronPlanet.
• If your items are being shipped to a destination with a higher sales tax rate, IronPlanet will issue a new invoice to you for those additional taxes.

I am still a bit confused. I understand it that I can ask for a refund which would be the difference in sales taxes since my state is lower. I know I will be calling my revenue office in the morning to see what their stance on the sales tax is. I want to avoid paying double sales tax and of course I want to pay the lower amount. I'm wondering what everyone else's experience is and especially anyone from Arkansas. It's been quite a while since I have bought anything and all I've had to pay when I did was GL's 10% fee.

 

[FloridaAKM]

They charge sales tax in the state of the sale, what ever percentage that might be. If you are exempt, with a certificate on file with them @ the time of the auction close, you pay no tax. You know you can't fool the taxman!

 

[Gunzy]

When you go to register it in your state make sure to take the receipt with you showing the sales tax and many states will not charge the sales tax again, but some states will. Check with your local DMV.

 

[Jwade]

We charge the tax based on where you physically take possession of the vehicle. It will default to where the vehicle is located. If you provide us with a bill of Lading from a hauler showing where it was delivered to then it will be adjusted to that location as it is where you took possession. If you self pick up or "use a friend" that is not DOT regulated than it is considered self pick up and you will be charged where the truck is located. If you have anymore questions PM me and I can have someone who is more knowledgeable than myself reach out to you.

 

[gottaluvit]

Self pickup and they charge the state of sale tax. Get it delivered and you pay your home state's tax.

 

[ARYankee]

Well that answers that question. Thank you guys. I just didn't want to get hit with extra taxes.

 

[Jwade]

Well that answers that question. Thank you guys. I just didn't want to get hit with extra taxes.

I can tell you that there are instances where the DMV will still charge you sales tax even when you show them proof that you have already paid it via GovPlanet. When that happens you need to show the proof that they made you pay it to our customer support and they will get a refund issued. DMV's are some of the most "interesting"(trying to stay PC here) departments I have ever seen. I had a customer recently tell me that they weren't excepting the SF97 because it was signed in Black ink instead of Blue. That may be one of the stupidest things I have ever heard (Dang there went being PC)

 

[Tornadogt]

I will give my opinion on sales tax.. again opinion..
Govplanet does not charge sales tax correctly based on how my state charges..

Sales tax should be paid in the county where the new owner resides when a title is being issued. So what I get when I go down to the Tax office they will charge the sales tax due in the county I live in not where the truck was bought or picked up from. So the extra city/county tax from the pickup point is not correct. As well as the tax being added to the 10% auction fee and to the sf97 fee is also wrong. It is sales tax so it should only be applied to the price of the item (your bid) (that is also the price on the SF97 form) and nothing else.

Bottom line, it is a bit ridiculous, but if you pay your bill at Gov Planet (and all the tax they charge). Get your item home, then go to your tax office with your SF97 to file for title. Let the Tax office charge you tax again. Then summit the bill from the tax office to Gov Planet and get all your "tax" money back from Gov Planet.

Too many steps?? yes Money out of your pocket twice?? yes But I guarantee if you are buying some higher price items the difference is quite a bit.

Lets not even get started on the 1.5% OFF ROAD Diesel tax charged to (bid + 10% auction fee + SF97 fee) in Texas for my to be titled non-commercial ON ROAD truck... whole different rant... Really 1.5% OFF ROAD Diesel tax on a $50.00 SF97 piece of paper??? sound right to you guys??

 

[Tornadogt]

Here is a copy of a resent purchase.

GovPlanet Charged me a total of $594.75 in taxes and Diesel fees.
the Tax Office I pay
State tax 6.25%
County tax 1.25%
(no OFF ROAD Diesel Fee because it is not an OFF ROAD piece of equipment)
All taxes are applied to the sale price of $5500.00
$412.50

I was overcharged by $182.25

 

[gottaluvit]

I will give my opinion on sales tax.. again opinion..
Govplanet does not charge sales tax correctly based on how my state charges..

Sales tax should be paid in the county where the new owner resides when a title is being issued. So what I get when I go down to the Tax office they will charge the sales tax due in the county I live in not where the truck was bought or picked up from. So the extra city/county tax from the pickup point is not correct. As well as the tax being added to the 10% auction fee and to the sf97 fee is also wrong. It is sales tax so it should only be applied to the price of the item (your bid) (that is also the price on the SF97 form) and nothing else.

Bottom line, it is a bit ridiculous, but if you pay your bill at Gov Planet (and all the tax they charge). Get your item home, then go to your tax office with your SF97 to file for title. Let the Tax office charge you tax again. Then summit the bill from the tax office to Gov Planet and get all your "tax" money back from Gov Planet.

Too many steps?? yes Money out of your pocket twice?? yes But I guarantee if you are buying some higher price items the difference is quite a bit.

Lets not even get started on the 1.5% OFF ROAD Diesel tax charged to (bid + 10% auction fee + SF97 fee) in Texas for my to be titled non-commercial ON ROAD truck... whole different rant... Really 1.5% OFF ROAD Diesel tax on a $50.00 SF97 piece of paper??? sound right to you guys??

On a brighter note, at least you don't have state income tax down there!

 

[Jwade]

Here is a copy of a resent purchase.
View attachment 609062
GovPlanet Charged me a total of $594.75 in taxes and Diesel fees.
the Tax Office I pay
State tax 6.25%
County tax 1.25%
(no OFF ROAD Diesel Fee because it is not an OFF ROAD piece of equipment)
All taxes are applied to the sale price of $5500.00
$412.50

I was overcharged by $182.25

I don't know enough about this to speak intelligently. I will pass info on to the tax department see what they come up with.

 

[ARYankee]

I don't know why they even charge tax. GL never did and it made it much easier when registering a vehicle. If they are being forced to charge tax then at least come up with a form to fill out so you pay tax for your area. That's my biggest concern is paying double taxes on a large purchase and then going through the BS of having to get a refund from Govplanet. There has to be a simpler, easier way.

 

[porkysplace]

I don't know why they even charge tax. GL never did and it made it much easier when registering a vehicle. If they are being forced to charge tax then at least come up with a form to fill out so you pay tax for your area. That's my biggest concern is paying double taxes on a large purchase and then going through the BS of having to get a refund from Govplanet. There has to be a simpler, easier way.

Gl charged sales tax here in michigan . Most states require businesses to charge sales tax.

 

[Tornadogt]

I understand what IronPlanet/GOVPlanet is doing. The bean counters want to make sure they collect all the taxes from the customer so that at the end of the day they don't have to pay out of there pockets for anything they may of missed.

IF you purchase a piece of equipment (truck/Generator) and do not title it. Then they would be charging the taxes CORRECTLY by charging at the point of sale, including the Off Road Equipment Diesel surcharge (in Texas) and local city/county taxes... (Charging those taxes on the 10% buys fee and on the SF97 is still not correct). I can/do understand that they have no way to confirm that you are going to go to your Tax office (pay the vehicle sales tax) and title the truck just because you requested the SF97. So they are just covering there side.

As far as Gl and taxes, in Texas, they would charge sales tax on non-title items at the point of sale, but all trailers/trucks no sales tax was charged because they knew when you went to title them your tax office would charge you the tax...

It is certainly a hassle for us customers and a lot of money out just to get it refunded later. I don't have a solution just putting my 2 cents in..

 

[rumplecat]

There is a window of time to apply for a refund from Gov.Planet, I waited too long and ended up paying Kansas and Arkansas taxes. Don't wait to register you vehicle! Also watch the diesel tax, it will show up on other things than vehicles!

 

[TacticalTruck]

Tornadogt has got it right. To add insult to injury GovPlanet charges 5.3% in Virginia which is correct for non-titled stuff but Virginia charges 4% on vehicles when you file for title and ZERO% if the GVW is over 26,000lbs. How do I prove I deserve my 5.3% back with a receipt that shows I paid zero to Virginia?! Don't waste your time speaking with their tax "expert", he's been told what to say by their tax atty, who's wrong, and there's no convincing otherwise.

 

[KansasBobcat]

Gov Planet tried to charge me Texas diesel tax on M1008. I got it refunded, I believe, based on weight of vehicle.

 

[jasonjc]

GL never charged me tax on trucks or trailers , just saying.............

 

[Castle Bravo]

GL never charged me tax on trucks or trailers , just saying.............

It must depend on where you buy them from... I looked at my GL account and I have been charged sales tax for every item I ever bought, trucks, trailers, and parts.

12/11 Barstow, CA 7.75% Trailer
09/12 Barstow, CA 7.75% Parts
10/12 Barstow, CA 7.75% Trailer
11/12 Oceanside, CA 7.75% Parts
03/13 Las Vegas, NV 8.1% Vehicle
03/13 Barstow, CA 8.0% Vehicle
04/13 Barstow, CA 8.0% Vehicle
09/13 Ft Riley, KS 7.4% Vehicle
06/14 Groveport, OH 7.5% Parts
07/14 Groveport, OH 7.5% Parts
04/15 Oklahoma City, OK 8.375% Parts

This was regardless of whether I picked up stuff myself or had it picked up by someone else. I have never had anything picked up by a shipping company.

The sales tax was the percentage of the bid and the buyer's fee, not just the bid.

 

[AndyC]

Va DMV won't honor my sales tax that I paid GP. Va. wants me to supply a tax receipt from NC were I bought the vehicle and paid Nc tax. All I have is the invoice from GP.