New York Sales Tax - I live in New York state very close to the Pennsylvania border. Though it may not seem like a complicated issue, there are times when the differences in sales tax has caused us some problems. Just recently my husband had to switch our car registration from Pennsylvania to New York. Because of a law about the New York sales tax, my husband left the DMV in a huff. I have never thought of my husband as a hothead, but apparently in this situation he was.
When he went into change the registration, he was in for a surprise. The person behind the counter told him that because the New York sales tax was higher than Pennsylvania, he would have to pay the difference before he could register his car in New York. Even though the difference was only 2%, it was a lot more money than he had with him. He said that he had bought the car in Pennsylvania, and it was not fair that he had to pay New York sales-tax on a car that was already purchased. Though I agree with him on this, we still had to get our car registered. His ranting was not going to change the law at that moment one bit.
I do wonder about the ethics of this. When I buy clothing in Pennsylvania, I do not have to pay New York sales tax to bring it back into the state. I know clothing is different than a car, but it is the same principle. We did not necessarily buy the car in Pennsylvania just to save on New York sales tax, but that was just how it worked out. When they told him he had to pay tax on a car he did not buy in New York, he became livid. What he did after that was to register the car in Pennsylvania yet again. Next year though, when registration comes up, he will have to bite the bullet and pay the difference.
I have always wondered why New York sales tax is higher than Pennsylvania. Though I realize New York City is part of our state, but you would think it would generate enough revenue due to the amount of people who live there. I know that perhaps the events in September 2001 have added some extra cost to New York State’s budget, but the New York sales tax was higher than Pennsylvania even before this occurred. I do have to admit however, that the roads in New York State seem to be in better condition than those in Pennsylvania, and that there are some benefits you can get in New York that Pennsylvania does not offer. Perhaps this explains the difference in the sales tax.
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