1. Multiply the net purchase price of the vehicle by the county millage rate (e.g., $10,000 x 0.06= $600).
2. Subtract any trade-in allowance from the amount in Step 1 (e.g., $600 - $4,000= $2,000).
3. Multiply the remaining purchase price by the state sales tax rate (6%).
So for a net purchase price of $10,000 and a trade-in allowance of $4,000 in a county with a millage rate of 0.06%, the sales tax would be calculated as follows:
- County tax: 0.06 x 10,000= $600
- Amount subject to state tax: 10,000 - 4000 = 6000
- State sales tax: 0.06 x 6000 = $360
Therefore, the total tax on the used car would be $600 (county tax) + $360 (state sales tax) = $960.
