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Car Forum / Driving, Maintenance, Tuning / Maintenance and Repair / December 2005Buying a car out of state
If you buy a car out of your home state, would you have to pay the sales tax twice? Once at purchase, and once to register? Thanks, John It depends on the state tax laws. In many states you would have to pay before registering because the tax is a "sales and use" tax. > If you buy a car out of your home state, would you have to pay the sales > tax twice? Once at purchase, and once to register? > > Thanks, > > John  SignatureMike Walsh West Palm Beach, Florida, U.S.A. Well, I live in CA, so I am sure that the state will screw me in every way possible. John > Well, I live in CA, so I am sure that the state will screw me in every > way possible. > > John Yep, you better move to Texas. It's much fairer there, and too crowded here. So, see ya! > If you buy a car out of your home state, would you have to pay the sales > tax twice? Once at purchase, and once to register? > > Thanks, > > John Most states have reciprical tax agreements. Usually you will pay sales tax once and registration fee once. They are not the same. > If you buy a car out of your home state, would you have to pay the sales > tax twice? Once at purchase, and once to register? > > Thanks, > > John usually states have reciprocacy agreements I just recently bought a car in Texas, and drove it to where I live no sales tax on cars under $2,500 in value $5.00 for title, $2.50 for license transfer... 1.00 handling fee.... renew plate January 2006..... $25.00 Kalifornia is probably much higher > If you buy a car out of your home state, would you have to pay the sales > tax twice? Once at purchase, and once to register? > > Thanks, > > John Normally, when buying an out of state car, you will pay tax to the state you buy it from. When you go to register the vehicle, and the state you are registering it in has the same percent rate, then you ned not pay any more tax....if the state you are registering it in has a higher rate, then you pay the difference between the two states. I would like to think when you are buying the car out of state, you also tell the sealer you are buying from that you are registering it in a different state. Usually they will charge the rate that the state you are registering it in will charge. This is what happened to us when we bought a car in New York. They gave us temp plates (new york) until the regular plates (Ct) came in, and also charged us the Ct sales tax. IN the end, the dealer will owe Ct the sales tax he collected from us. Fwed > > If you buy a car out of your home state, would you have to pay the sales > > tax twice? Once at purchase, and once to register? [quoted text clipped - 15 lines] > the Ct sales tax. IN the end, the dealer will owe Ct the sales tax he > collected from us. I believe that the US Supreme court ruled that sellers are not required to collect state sales tax for states that they do not have a "nexus" in. Fortunately I live in a state that has no sales tax so I don't have to deal with this issue, but if I did I would make a stink if a dealer tried to collect state sales tax for an out of state sale, unless they had a legal nexus in my state. If the dealer leaves town and doesen't pay your home state, your on the hook for the tax-to-pay. Its much safer to pay it yourself, then you know it's been done. Ted > If you buy a car out of your home state, would you have to pay the sales > tax twice? Once at purchase, and once to register? > > Thanks, > > John Depends on the states involved. Best bet would be to contact the DMV and state or local taxing authority in both states BEFORE buying the car. One other thought, since it is out of state and you presumably have not seen the title in person be sure to check that there are no liens before handing over any cash. And one more thought. Be very wary of totalled vehicles from storm damaged areas that have been retitled and sold. Internet auctions are the perfect way to move those wrecks. >If you buy a car out of your home state, would you have to pay the sales >tax twice? Once at purchase, and once to register? No. You pay when you register in your state. ----------- Alex |
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