Legal Question in Consumer Law in Texas

tax on used car

My son is in the Navy and his home of record is Texas. He purchased a vehicle at a well-known national franchise in the Baltimore, MD area where he is stationed and expressed a desire to have the car registered in TX. They indicated it wasn't a problem and gave him a list of things they needed to complete the registration for him. Later (about a month) he went back since he hadn't received anything from the dealer. They then told him he would have to pay Tax, which is in excess of $1000. He did trade a vehicle, which would reduce his tax liability, but they did not include tax on the vehicle or mention it anywhere on the contract. Now they have said they only register in Wash D.C, VA, and MD and he will have to pay the tax and register in TX on his own. Shouldn't they have charged him the tax on the new vehicle at the time of purchase, and shouldn't they have taken the cost of the new car and subtracted the cost of the trade in to get the taxable amount? Neither he nor I have $1000+ to pay the tax. He could have financed it. Would the tax now be charged in TX or would it go to MD where the dealership is located. These places tend to take advantage of young military kids away from home for the first time.

Thanks for your time.


Asked on 3/21/08, 11:03 pm

2 Answers from Attorneys

Jeffrey Brashear The Brashear Law Firm, PLLC

Re: tax on used car

Your son should contact the local Navy JAG office. They are well versed in handling situations such as these and even may have some administrative remedies for your son. As time is of the essence, your son needs to move quickly on speaking with the JAG office. If my law firm can assist you with this legal issue or any other legal matter, please contact my legal assistant Jennifer ([email protected]).

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Answered on 3/24/08, 11:45 am
Donald McLeaish McLeaish&Associates;, P.C.

Re: tax on used car

Apparently they did put MD tags on the car? Have your son call the local JAG...ie miliatry lawyers, or his boss...and when purchases are made ..generally what is written controls...and if he did not finance, but can, perhaps he can now. Texas law would not control.

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Answered on 3/22/08, 9:25 am


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