So I recently sold my 2013 Ford F150 to a guy.  He paid off the balance to the bank and I got the rest.

I used the rest to buy a used car a few days later.  I obviously owe taxes to Missouri for the used car I bought.  About $350 or so, per the calculator on their website.

But today a guy at work said that I could take in the bill of sale showing where I sold my truck, and then because I bought another vehicle recently - it would somehow offset the tax liability on the used car.

Anyone have experience with this??  I've never heard of this.

Yes you'll be ok you paid taxes already and I'm assuming the used car is of less value than the one you got rid of.  If you bought another new car you'll have to pay the offset next year.

Ya, I forget how much time you have...like 30-45 days?  Might be more....they will tell you at the license office.

"State sales tax of 4.225 percent, plus your local sales tax on the purchase price, less trade-in allowance, if any;"


MO DOR

Welcome to Missouri

The key here is, did you declare the true amount you received (bank payoff + difference) on the back of the title of your old car?  That is the amount the buyer of your car is going to have to pay sales tax on.  Then, you pay sales tax on the amount of your new car, minus the sale price of your old car.  I don't remember what evidence of prior sale you need to bring to the office.

I think you have up to six months to replace a vehicle and get a credit on the sales tax, and then another six months to make the request.  It's a good amount of time.

Either way, you just send a copy of both bill of sales and fill out the form.  Send to the MO DOR and you'll get a check within a few weeks.

Like another said, hopefully you entered the true amount on the bill of sale and title.  Otherwise, if you were doing the other guy a favor to save him money on his sales tax, you screwed yourself.  Even if you sell someone a car for $1, the state will use the NADA value to calculate the sales tax.  Last year I had bought a used vehicle for about 10-15% under that value and they gave me trouble about it--I just told them it had some damage, needed work, etc......no further problems.

Thanks everybody!