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Dealers - How do sales taxes work on an out of state auto purchase?

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Old 02-11-2004, 12:38 PM
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BuckyThreadkiller
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Default Dealers - How do sales taxes work on an out of state auto purchase?

I know here in Texas, on a new car deal we pay .0625 sales tax on the difference between the trade-in value and the selling price of the car.

And on a private party purchase you pay that same amount on the sales price of the car at the county tax office when you change the title.

So how does that work if I buy a car in Montana, or Atlanta or Michigan or Indy?

Do I pay sales tax there and here when I transfer the title? or do I not have to pay at all since its an out of state purchase, or do I pay local taxes where I buy it?
Old 02-11-2004, 12:47 PM
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Default Re: Dealers - How do sales taxes work on an out of state auto purchase? (BuckyThreadkiller)

here in new jersey, as a private sale, you pay the sales tax for new jersey for the purchase price of the car when you register for your plates. in past history, i have bought a new car in pa and they charged me the sales tax rate for new jersey but that was a new car and a dealer and many, many years ago.


[Modified by builtfspd2, 12:48 PM 2/11/2004]
Old 02-11-2004, 01:26 PM
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0Rick @ Les Stanford
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Default Re: Dealers - How do sales taxes work on an out of state auto purchase? (BuckyThreadkiller)

I know here in Texas, on a new car deal we pay .0625 sales tax on the difference between the trade-in value and the selling price of the car.

And on a private party purchase you pay that same amount on the sales price of the car at the county tax office when you change the title.

So how does that work if I buy a car in Montana, or Atlanta or Michigan or Indy?

Do I pay sales tax there and here when I transfer the title? or do I not have to pay at all since its an out of state purchase, or do I pay local taxes where I buy it?
The exsact same way here.:)
Old 02-11-2004, 03:36 PM
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BuckyThreadkiller
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Default Re: Dealers - How do sales taxes work on an out of state auto purchase? (Rick @ Les Stanford)

So Rick, if I were to come to Dearborn and buy a car would I pay sales taxes there or when I registered the car in Texas?
Old 02-11-2004, 03:59 PM
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corvetteseller
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Default Re: Dealers - How do sales taxes work on an out of state auto purchase? (BuckyThreadkiller)

We are licensed only by the State of Indiana to collect sales tax; therefore,
our out-of-state customers are exempt in Indiana and pay the sales tax
to their State of residence. Unless a dealer holds a sales tax license from
any given State, they have no legal obligaton to forward collected "tax money" in a timely fashion. Several have reported incurring fines in their
home state becuase dealers did not send the collected money prior to
deadline.

Simple rule: No sales taxing authority from my State, you don't collect.

Leases are different, in that the dealer is prerforming as an agent of the
leasor, who is chartered in the specific State to lease vehicles and collect
the applicable tax, be it a use tax or sales tax.


[Modified by corvetteseller, 3:02 PM 2/11/2004]
Old 02-11-2004, 04:25 PM
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0Rick @ Les Stanford
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Default Re: Dealers - How do sales taxes work on an out of state auto purchase? (BuckyThreadkiller)

So Rick, if I were to come to Dearborn and buy a car would I pay sales taxes there or when I registered the car in Texas?
When you reg. the car in Texas if we ship it out to you if you drive it home then we would need to get you a Mi. temp tag and charge you 6.25% tax FOR TEXAS then you would not pay this again in Texas.:)
Old 02-11-2004, 04:59 PM
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Default Re: Dealers - How do sales taxes work on an out of state auto purchase? (Rick @ Les Stanford)

So to further complicate the matter - If I placed an order for museum delivery through you, you'd charge the tax for Texas even though I'm buy the car in Michigan and I pick up the car in Kentucky, Right?
Old 02-11-2004, 06:09 PM
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Default Re: Dealers - How do sales taxes work on an out of state auto purchase? (BuckyThreadkiller)

Here is what I've been told:

You pay the sales tax to the state that the title will be held in. If you buy it from a private part, pay when you register the title in your state. Buying from a dealer, some dealers in certain states may collect the taxes for your state, while others will leave it up to you to register.
So you should pay Texas taxes on your purchase. Be it in another state when you pay them, or when you register it there.
:cheers:
Old 02-11-2004, 06:18 PM
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Default Re: Dealers - How do sales taxes work on an out of state auto purchase? (Donzi4me)

I've bought 3 cars out of state, 2 new 1 used. ALL have collected the sales tax for my state at time of purchase and mailed me a check made out to my states DMV. They also all calculated the registration fees and included a check for them too. 1 I had to kick in like $10 because it was a little short. YOUR dmv will want their sales tax money when you go to register or you will not get a plate. Do not pay sales tax for anyone elses state but your own. No state should require sales tax to be paid for temp plates and if they do, insist on whatever the dealer gives out for plates on their loaner cars and you Fed Ex it back the next day.
Old 02-11-2004, 06:33 PM
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MONICA@MAXIEPRICE
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Default Re: Dealers - How do sales taxes work on an out of state auto purchase? (GN1270)

We collect sales tax, tag & title for the state you register the vette in. We take care of all the paperwork for you & when we can, the tag & title go right to your house.
Old 02-11-2004, 06:36 PM
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AT T 2D
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Default Re: Dealers - How do sales taxes work on an out of state auto purchase? (BuckyThreadkiller)

I live in NC and bought a new C5 from Monica at Maxie Price Chevrolet in GA two weeks ago. She charged the NC sales tax and sent me home with a GA temporary plate.
Old 02-11-2004, 06:37 PM
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Default Re: Dealers - How do sales taxes work on an out of state auto purchase? (MONICA@MAXIEPRICE)

Thats top notch service. I hated waiting in line at DMV all those times.
Old 02-11-2004, 06:49 PM
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Default Re: Dealers - How do sales taxes work on an out of state auto purchase? (AT T 2D)

Yup, same with me. Maxie Price collected the Florida tax etc and gave me a temp tag. In a few weeks I got the registration in the mail and my tag transferred from my previous vette. It was great.......I didn't have to do anything!
Old 02-12-2004, 06:49 AM
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Default Re: Dealers - How do sales taxes work on an out of state auto purchase? (LT1)

Both times I bought vettes from a dealership, no sales tax was collected and I had to pay it when I registered the car (I also have a SC address and sales tax there is capped at $300). In Georgia, where my main residence is, if I buy from someone who does not regularly sell cars (i.e. a dealer) there is NO sales tax. One of the few good deals left where the govt isn't going to get it's hand in your pocket, and one of the few states which has this statutory provision.

-Jed
Old 02-12-2004, 07:52 PM
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dhoshowski
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Default Re: Dealers - How do sales taxes work on an out of state auto purchase? (BuckyThreadkiller)

What about for Canadian residents who will be registering the vehicle in Canada?
Old 02-12-2004, 07:58 PM
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Karl Johanson
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Default Re: Dealers - How do sales taxes work on an out of state auto purchase? (BuckyThreadkiller)

We collect the taxes of the state in which the vehicle is to be registered ONLY if you are financing the vehicle through one of our lenders who have requested that we do so. GMAC for instance wants to know that the taxes have been paid and the Vehicle registered. If you are paying cash , then you can pay the state sales taxes when you register the vehicle in your state. We are not obligated to collect the taxes if you are not financing the vehicle through our sources.
Old 02-13-2004, 05:50 AM
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Default Re: Dealers - How do sales taxes work on an out of state auto purchase? (Karl Johanson)

I've bought vehicles out of town, new and used, on the new or used one I just paid for the temp. drive out plate this was $10. Then I paid the tax when I went to register the vehicle, that way there would be no confusion. :flag

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