Who is primarily responsible for collecting use tax during a retail sale of a vehicle?

In a retail sale of a vehicle, the dealer is primarily responsible for collecting use tax. This responsibility falls on the dealer because they are the ones directly involved in the sale transaction and are required to ensure that all relevant taxes are applied and collected at the point of sale. By collecting the use tax, the dealer acts as an intermediary, facilitating the correct transfer of funds to the state government, which is then used to fund various public services.

The process ensures that the tax is collected efficiently, minimizing the chance that buyers may overlook it or not understand their obligation to pay it when registering the vehicle later. Although buyers have a responsibility to understand their tax obligations, the dealer's role is crucial because they handle the transaction and can provide the necessary paperwork and information related to the tax obligations.

Also, while the DMV plays a role in the vehicle registration process and may assist in tracking tax compliance, it does not collect taxes directly during the sale of the vehicle. Similarly, while the state government establishes the tax regulations, it is the dealer who practically implements the collection during the retail sale.