Do I owe sales tax on a Raffle?

If you win a vehicle in a raffle, lottery, or anything else, sales tax must either be paid by the group giving away the vehicle or by the winner. If the group giving away the vehicle is a non-profit or tax exempt, they would have no tax liability and neither would the winner. If the group raffling the vehicles is taxable, the sales responsibility belongs to that group.  The winner is still responsible for licensing. The sales tax amount would be based on the "fair market" value of the vehicle, or generally the Blue Book value.

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?