Hello All,
As I prepare to embark on building an RV, I notice Van's is collecting sales tax for seven states so far, with more to come next month.
My state of Alabama will be added to the list next month. Alabama generally has a flat rate of 8% for internet sales. This is an advantage for those in incorporated areas where the sales tax rate totals 10-11%, and a disadvantage for those in unincorporated areas where the rate totals 5% usually.
It is beginning to look to me like if I buy and build a kit I will likely pay 8% sales tax. However, if I buy one already built the sales tax rate would be only 2.375% (2% for the state, .375% for the county).
So if we were to use an $80,000 figure, the "penalty" for building yourself would be $4500 ($6400 at 8% vs $1900 at 2.375%).
Am I figuring this wrong somehow?
Thanks for your thoughts!
Michael
As I prepare to embark on building an RV, I notice Van's is collecting sales tax for seven states so far, with more to come next month.
My state of Alabama will be added to the list next month. Alabama generally has a flat rate of 8% for internet sales. This is an advantage for those in incorporated areas where the sales tax rate totals 10-11%, and a disadvantage for those in unincorporated areas where the rate totals 5% usually.
It is beginning to look to me like if I buy and build a kit I will likely pay 8% sales tax. However, if I buy one already built the sales tax rate would be only 2.375% (2% for the state, .375% for the county).
So if we were to use an $80,000 figure, the "penalty" for building yourself would be $4500 ($6400 at 8% vs $1900 at 2.375%).
Am I figuring this wrong somehow?
Thanks for your thoughts!
Michael
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