Is sales tax owed if I assume a loan?

Yes. Any "SALE" creates a taxable event when tangible property is exchanged for cash or consideration. 

Consideration means recompense or payment which includes to the parties to a sale. Consideration is not limited to cash. Assumption of debt is a form of consideration. 

Sales tax would be collected on the remainder of the loan.

Show All Answers

1. What's a sales or use tax?
2. When does sales tax have to be paid?
3. How much sales tax do I pay?
4. What if I purchase a vehicle out of state?
5. What does a sales tax calculation look like?
6. Where does the sales tax money go?
7. What if the vehicle was a gift?
8. What is exempt from sales tax?
9. How do I pay sales tax on my boat?
10. Do I Pay Sales Tax on a Lease?
11. Is sales tax owed if I assume a loan?
12. Sales tax on a Lease Buy Out
13. Do I pay Sales Tax on a Mobile Home?
14. Do I owe sales tax on a Raffle?
15. Can I pay my sales tax without my title being processed?