Are wholesale dealers required to collect use tax from the purchasing dealer?

Wholesale dealers are typically not required to collect use tax from the purchasing dealer because they operate under specific provisions that exempt them from this responsibility. Use tax generally applies to the purchase of tangible personal property when sales tax has not been collected, which often does not include transactions between licensed dealers who purchase vehicles for resale.

Wholesale dealers usually sell vehicles to other licensed dealers and not directly to the end consumers. This distinction means that the responsibility for any applicable use tax generally falls on the purchasing dealer, who is expected to handle tax matters related to their resale activities.

While some circumstances might involve different tax obligations depending on state regulations or specific vehicle types, the standard practice is that wholesale transactions are conducted without the addition of use tax by the wholesaler. Other options presented in the question suggest conditions that would not accurately reflect the usual regulatory framework governing these transactions.