Which entity is NOT responsible for the collection of use tax during a vehicle sale?

The local city government is not responsible for the collection of use tax during a vehicle sale. In most jurisdictions, use tax is a tax imposed on the use of goods and services when sales tax has not been paid. The responsibility for collecting this tax typically falls to specific entities involved in the sale process.

Dealers are generally responsible for collecting sales or use tax at the point of sale. This tax is then forwarded to the appropriate state revenue agency. The buyer has an obligation to pay this tax but does not collect it; rather, it is the seller (the dealer) who facilitates this collection. The Department of Motor Vehicles (DMV) also plays a role when it comes to vehicle registration, as they require proof of tax payment when a vehicle is registered.

In contrast, local city governments may benefit from the revenue generated by these taxes, but they are not typically the entities that directly collect the use tax from vehicle sales. Their function is often more aligned with the allocation of tax revenue rather than the collection itself, thereby clarifying why they do not have this responsibility in the context of vehicle transactions.