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ORIGINAL: ATracker
I do not understand why a used item can continue to be taxed. Maybe it is only in certain states but I see in Texas any item sold as used through a business or requires registration is allowed to be taxed again. I cannot seem to find the answer I am satisfied with so maybe some of the Lawyers here can send me in the right direction or explain the legalities why this is fair since the initial tax was already paid upon purchase. Who determines the fair market value to tax these items again and why is this legal. I know this maybe a broad question but seriously isn"™t this a multiple taxation or am I missing something.
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You suffer multiple taxation all the time. You pay income taxes all your life, and then, when you die, you pay a tax on whatever money you've managed to save...
I suspect Texas sales tax law allows this to make up for the fact that they don't have a personal income tax. I don't know whether the constitutionality of the tax has ever been litigated.
Establishing the fair market value upon which to levy the tax is pretty simple. FMV is the amount a willing buyer and a willing seller agree upon.
Taxation Question
