So here's my question If one buys a car in a state with a state sales tax then takes (drives) it out of state and registers it in his home state can he apply to the state where he made his original purchase and get a refund in the tax he paid? Or do you have to have the car shipped out of state to avoid the sales tax. The reason I ask my brother bought a boat here in BC and when he registered it in AB where he lives, he applied and got back the provincial sales tax he paid in BC. Just wondering if its the same in the states?

 

Each state (that has a sales tax) has different laws covering this. Best to inquire of the DMV in the purchasing state, and in the intended registration state. Some states will provide a temporary license tag (30 days) to allow you to drive the car to your home state, without having to pay the sales tax in the purchasing state.

 

It appears you are asking about sales tax laws in Canada which very few here will know anything about.

Your brothers boat issues have no bearing on this corvette website.

 

Varies from state to state but generally you will wind up paying the higher tax total. The original state generally does not give back any tax...... and the new state will collect tax if you paid lower in the selling state.

 

Depends on the state you are buying in from and importing it into. CA will tax the crap out of you no matter what. In Utah they'll make you pay the difference in tax if you pay less out of state. I remember from living in Boise, ID that people said just drive over to Ontario, OR and buy a car since they didn't have a state tax. But soon as you register it in Idaho they would charge you Idaho's state sales tax.

Some states have time limits that the car must be in the state. In my case I bought a car overseas with the military. I didn't pay any state sales tax there. Idaho was about to charge me 4.5%, Utah wanted 6.5%. But then I showed the UT DMV a law in their book saying as long as the car is registered for 6 months in Europe I don't have to pay them a dime so I paid zero in the end.

 

Well Pardon me bearphoto I did mean to offend anyone..
He purchased a boat not a vette he still would of received a refund on the sales tax.
I have read on a number of the dealers sites if you have the car shipped to your home out of state you don't pay the tax but if you take delivery at the dealer you pay. Just trying to get it clear that all...

 

I would only add that in Utah, we can get a temporary permit for a few dollars that we can take to another state and stick on the car that we buy there.

 

But yet you cannot pick up a new car that is bought out of state and delivered in Utah without a perm tag which means the dealer needs the MSO. I found that out in 2008.

 

I know that when I import a car here I'd have to pay the HST which is 12% That why I'm doing all the research. It could get pretty steep if one has to pay state tax as well..and not get any of it back.

 

I frequently buy cars out of state. I usually get a temporary tag to take it back to Connecticut and then when registering the car in Ct. I ONLY pay the Ct sales tax.

 

If you buy from a dealer, you have to pay your home state's & county's tax rate. We run into it all the time being close to GA.

 

Normally, you pay the sales tax in the state where you are registering and titling the car. This is done to prevent people from buying cars in other states with lower sales taxes and then taking them and registering them in the state where they live, which has a higher sales tax.

But here's the catch (and where it gets complicated).

In order to get the car to the state where you are going to title it, it may require a temp tag. And the dealership in the state that sold you the car may charge you that state's sales tax in order to get the temp tag.

In Florida, when you register a new car bought out of state, if you show us the receipt showing you already paid sales tax in another state, we will only charge you the difference. If you paid more in another state, we won't charge you any sales tax. Then you can take our registration and prove to the other state you registered it here in Florida and you may get a refund (not sure about other states).

Some people will take a tag off another car and take it with them when they do the purchase. Then they use this tag to get the new car back to the state where they are going to register. That's fine but it is technically illegal and if you get pulled over, you may get a ticket. Plus, dealerships may not let you drive the car off the lot with a tag they knows doesn't belong on it. This scenario works fine if you buy from a private seller. They probably don't care if it is titled, whether you paid sales tax, or whatever. But the dealership does.

Hope this helps.

Tom
Florida DMV

 

Some States have agreements to collect the tax on behalf of of another, I think in part to allow the tax to be rolled up in the financing.

My son bought a Formula in Fla and they collected 4% there and we paid the remaining 3% here in GA. The GA Rate is 7%.

In Ga if you buy from an individual and register the car in GA, you don't pay sales tax, but I think that law is about to change.

 

Thanks for all the posts. I don't mind paying my FAIR share of taxes but I don't like getting it up the wazoo.

 

I bought my GS from McMulkin in New Hampshire.

They gave me a free New Hampshire 20 day temp sticker

Drove the car to my homestate of Florida

Then paid the 6% Florida state tax + some other registration fees and got my Florida license plates and title.

 

I do know some states have what is called a transport tag used for out of state deliveries. No sales tax paid until you title the car in your home of record.

 

Yup ... And that's exactly what I said in my post above yours, except I drove the car to Florida from New Hampshire instead of having it transported here by a car carrier.