New Texas used car sales tax

The KTRK Consumer Blog has details on the new Texas used car sales tax:

If you're in the market for a used car, be warned. The tax man is getting ready to take a bigger bite out of your wallet.

Beginning this week, if you buy a used car from a neighbor or other private owner, you will probably pay more in sales tax. The rate is the same, but from now on the used car sales tax is no longer based on what you paid for the car.

Before this week if you bought a used car for $5,000 you paid tax on $5,000. But now if the state says the car is worth $10,000, you're paying sales tax based on that higher value.

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