The classic cars have come and gone for this year but one of our viewers has a question now that Hot August Nights has wrapped up.
John graves wrote in asking if state or local taxes were collected from cars sold during the Barrett-Jackson auction ?
I checked with David Fierro at the Nevada DMV.
He says yes, they do collect taxes on the cars sold at the Barrett-Jackson auction.
There are different ways those taxes can be collected. If it is an individual it will be when they come in to register the car and in some cases taxes are collected through a dealership.
Just to give you a little more perspective on this total sales from the auction amounted to more than 14 million dollars. One car alone sold for $500,000. According to my calculations that would be about $38,000 in sales tax for that car but keep in mind taxes are collected on point of delivery.
So if someone buys a car here, then takes it home to California to register it, the taxes are collected there. Nevada only collects sales tax on the cars that end up getting registered here.
By all accounts Barrett-Jackson was thrilled with the turn-out at its three day auction and the event seems to pay off for everyone, car buyers, the auction company, and the local economy. Although our take may not be quite as big as you might think because many of the cars end up getting registered elsewhere.