Buying a car out of state... sales tax?

[SunnyD]

I'm sure this differs from state to state somewhat, but I'm kind of curious how this generally works when you buy a car from out of state how the dealer is supposed to deal with the sales tax.

For example, in Alabama, if you buy a car in state, the sales tax is a line item on the bill of sale. If you buy a car out of state, you pay a use tax instead (I believe when you register the car?). My question is are you also obligated to pay the out-of-state sales tax on the car to the dealer as well? (would seem dumb, but then again government is dumb and all about money anyway)

 

[rudeguy]

I wouldn't think so.

I know here in MI we pay the tax when we register the car. If an order comes from out of state, no taxes. However if you come into the state to make the purchase, I'm sure there would be.

So I guess it would matter if you are doing a face to face purchase or not.

And now I'm confused.

 

[iroast]

I paid tax when I registered my car that I purchased from another state.

 

[NutBucket]

In CA you pay tax when you register the car. No way around it. Not sure how that works if you purchase from a dealer out of state.

When I sold a car to a guy from Arizona there was no way for CA to collect sales tax. I'm not sure what taxes he had to pay when he registered the car.

Disclaimer: Never bought an out-of-state car.

 

[Zargon]

I'm in IL, and MO and IND have lower sales taxes on vehicles than we do

I know that if I buy any car from a dealer in IND or MO I will keep the receipt for the taxes paid and use that to have that taken out of tax amount I owe to IL

I doubt that helps much though, but they tell me to pay the other states taxes

 

[tboo]

If you are buying from an out of state dealer, most likely the only thing youll have to pay beyond the price of the car is whatever stupid dealer fees the dealer has. Generally they call it a document or service fee. When you register the car in your state, then you'll have to pay your state's tax on the purchase price along with any other fees your state has such as counter fee, paying for plates...etc.

 

[Pardus]

Generally, on out of state purchases, you pay taxes on the vehicle in your HOME state when you get the vehicle registered.

If you buy a car in a state with NO sales tax, your home state will still charge you sales or use tax on the purchase.

 

[HomerJS]

I'm sure this differs from state to state somewhat, but I'm kind of curious how this generally works when you buy a car from out of state how the dealer is supposed to deal with the sales tax.

For example, in Alabama, if you buy a car in state, the sales tax is a line item on the bill of sale. If you buy a car out of state, you pay a use tax instead (I believe when you register the car?). My question is are you also obligated to pay the out-of-state sales tax on the car to the dealer as well? (would seem dumb, but then again government is dumb and all about money anyway)

Sometimes you can get the seller to do you a solid and write a lower sale price on title to lower your tax bill.

 

[tboo]

Sometimes you can get the seller to do you a solid and write a lower sale price on title to lower your tax bill.

That is illegal

 

[AmdEmAll]

That is illegal

Yes and everyone still does it

 

[NutBucket]

Why yes, I only paid $5000 for this Ferrari 458 Italia

 

[EagleKeeper]

Sometimes you can get the seller to do you a solid and write a lower sale price on title to lower your tax bill.

That is illegal

Yes and everyone still does it

If the price of the sale is considered to be to low; the state will charge you what they consider to be the tax on the fair market value (blue book);

You will then have to prove that the vehicle is not worth that value.

 

[unokitty]

I'm sure this differs from state to state somewhat, but I'm kind of curious how this generally works when you buy a car from out of state how the dealer is supposed to deal with the sales tax.

For example, in Alabama, if you buy a car in state, the sales tax is a line item on the bill of sale. If you buy a car out of state, you pay a use tax instead (I believe when you register the car?). My question is are you also obligated to pay the out-of-state sales tax on the car to the dealer as well? (would seem dumb, but then again government is dumb and all about money anyway)

When I imported a motorcycle that I bought while I was in Japan, I had to pay a "Road Use" tax before I could register it in Illinois. Don't remember paying sales tax in Japan.

Uno

 

[Aikouka]

I lived in Pennsylvania when I purchased my Altima in New York. I had to pay the 6% sales tax to Pennsylvania when I registered the car. I wasn't complaining, because that beat New York's 8% tax!

 

[Childs]

Sometimes you can get the seller to do you a solid and write a lower sale price on title to lower your tax bill.

I did this when I bought a car from NJ via ebay. It was actually the seller's idea.

 

[Kreon]

In MA, you pay the sales tax when you register the vehicle.

In NH you also pay the property tax on the vehicle when you register it.

 

[isekii]

Yes and everyone still does it

I hear it happens all the time. Especially when it's a cash sale.

 

[tboo]

Yes and everyone still does it

I dont. I and know my dad doesnt so its not everybody.

 

[NutBucket]

Your loss. But lets not get into politics and legalities

 

[Aikouka]

In NH you also pay the property tax on the vehicle when you register it.

I have that pay that in Alabama every year... it's really not pleasant going from insignificant $25 registrations to slightly more significant $180 registrations!

 

[SunnyD]

I have that pay that in Alabama every year... it's really not pleasant going from insignificant $25 registrations to slightly more significant $180 registrations!

Be glad we don't live in Virginia. It'd be more like $600-1000/year there.