mschuyler

Boardwalk in CA has some great prices on in-stock Vettes, but they state that of you pick the car up in CA, you must pay 9% sales tax. I live in WA and the rule here is that of you buy a new car elsewhere and bring it to the state, you must pay WA sales tax where you register the car UNLESS you've had the car more than six months.

Last time I bought a car out of state in GA I was NOT required to pay GA sales tax because I am a WA resident and intended to register the car here in WA. When I got back to WA (GREAT road trip of 6788 miles!) I paid sales tax here in WA.

So it sounds like I would be required to pay sales tax both places, which would nullify any savings. Does anyone here "know the rules" better than I do in these cases?

dvilin

My understanding of the rules is the same as yours, you pay the sales tax in the State you register the car.

RicK T

Not an expert but after watching these things over the years it seems that the typical case scenario is, you pay the Ca sales tax then when you get back to your home state, I don't know if Wa participates though, your home state gives you a credit for the Ca tax you paid. If there is a difference, you pay Wa, if you paid Ca more than you would in Wa, then you're just out the extra.

I'm sure someone who has done it will chime in today.

robert miller

You pays the taxes in the state you live in... Not the state you buy the car in. I would tell them to look the law up. Robert

neil falzarano

I agree with Robert.

mschuyler

OK. I just got it clarified by both Tim at Boardwalk and my own Dept of Revenue in Washington. Believe it or not, they have a chat function on their website. never would have thought...but anyway:

In the case I mentioned, California forces you to pay sales tax in California, BUT when you get to Washington to register the car, you get credit for the California tax and only pay the difference. So, if California sales tax is 9% and Washington is 9.3% I would pay .3% to Washington.

If I bought the same car in Oregon, where they have no sales tax at all (but it's too dangerous to pump your own gas), I would pay the full 9.3% sales tax once I got to Washington.

Last time I bought a car in Georgia, they charged no sales tax (even though they have one), but I paid the Washington tax once I got back home.

Bottom Line: You don't get taxed twice even though there are different methods to achieve this.

Thanks everyone for your answers.

rmorin1249

What happens if you buy and pay sales tax in a state that has a higher rate than where the car is registered?
Do you get partial refund?

nmvettec7

My wife and I just purchased a new 2017 Kia Sportage in California on March 17th, 2016.

We live in New Mexico.

The California rule states, if the purchaser is out of state and physically picks up the vehicle personally in the State of California, he must pay California sales tax.

If the purchaser is out of state and has the vehicle professionally transported (car hauler) from the State of California to the state where the purchaser resides there is no Califonia sales tax liability.

Thus, our 2017 Kia Sportage was transported from San Diego, CA to Las Cruces, NM and no sales tax paid. When we go to register the car in NM we will pay the state sales tax of 3% to the NM MVD.

The cost for transport was $550.00. The vehicle was picked up on a Thursday evening at 7:30 PM at the dealership and delivered to my residence at 11:30 AM the next day.

This was a 100% internet purchase, sight unseen, in the exact model and color we wanted. It was a flawless transaction.
Car delivered with 8 miles on it.

..

dataporter

Beware of California! Don't trust what a salesman says! ANYTIME California can tax ANYTHING, they WILL!

VistaVette

You don't get a refund.

nmvettec7

Post #8 is 100% correct. Read it.

dataporter

You are correct and I am correct.

The OP is talking about paying the California Tax and getting a credit in Washington state. I wouldn't do that!

nmvettec7

Makes no sense to fly or drive to California to pick up the car personally and pay state sales tax. Overall costs are lower to have the C7 shipped.

The State of Washington taxes all sales of automobiles at a rate of 6.5 percent, which is the standard retail sales tax. In addition, Washington county taxes are applied as well at a rate of 0.3 percent of the sales price. The effective rate is 6.8% of the purchase price.

He won't get any refunds from the State of California for the overpayment vs Washington.

He is best to have the C7 professionally transported as I did.

wonka12_98

mschuyler

I don't think so. First, your data is wrong. The effective state sales tax rate in Washington where I live is 8.7%, not 6.8%. Plus, for car sales they tax an additional .3% for a total of 9%. As it happens, the sales tax rate is the same. If it were LESS than California I would get no refund from California. If it were MORE than California I would pay the difference.

Assuming time is not an issue, transporting the car would add to the cost. Transport is about $1.00 a mile, so figure $1,000 to transport. Of course, it "costs" to fly down and drive back, but at worst it's a wash plus I get to drive up the coast with all those curves. Would you like to drive up Highway 1 in a new Corvette? Hot damn! I would!

zcobra1

If you have the time and inclination for a road trip,
ship it just over the border to Oregon and drive her home ?

The lower shipping costs should cover hotel, food and fuel.....

jaki30

Bought my C7 on April 5th. I live in Virginia, bought the car in Maryland. I paid the Md. dealership the Virginia sales tax and I am waiting for Va DMV to send me my title and registration. Got a 60 day temp plate from the Md. dealer. Md dealer says 4-6 weeks to get the paperwork.

nmvettec7

You should do what you feel best, and appears that you may have answered your own question.

Everything I find from the State of Washington Dept of Revenue clearly states the sales tax is 6.5% + local tax + .03 tax. I have no idea what local taxes might be but is posted at 2.2%. Kitsap County, Washington.

Sounds like you made up your mind from the beginning so why even ask the question in post #1.

Just go get the car, pay the California sales tax, pay for the cost to fly there and drive back, eat, hotels etc.

Bottom line, do what you want. It's your money.

rmorin1249

I live in western MD only a few miles from VA, PA and WV. I have purchased cars in all these states and usually the dealer can pay the tax and register the vehicle thus saving the customer the hassle and time of having to go to the DMV.

mschuyler

Because, sir, at the time I did not know what the answer was. SUBSEQUENT to that initial post I found out, and reported back here what the answer was, far above this post, as did some other posters as well, for which they have my thanks. Now even you have repeated what I posted above yet again. Thanks so much.

And yet, even after the question was asked and then answered, we are still getting wrong answers. But the question is, indeed, settled.