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Sales Tax on new C7 purchase?

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Old 08-18-2018, 11:24 PM
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Default Sales Tax on new C7 purchase?

I'm purchasing a new C7 from a dealer in Maryland, picking the car up in Kentucky at the National Corvette Museum and registering the car in Tennessee where I live. Am I correct in understanding that the sales tax I need to pay is just in Tennessee? That Tax comes to $6,690.00 Is there any legal way to reduce this tax?

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Old 08-19-2018, 12:28 AM
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SilverGhost
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Move to these states - except Delaware (or city Juneau):

New Hampshire

In addition to having no general state sales tax, New Hampshire also has no personal income tax and collects most state revenues from property taxes.

While there is no statewide sales tax, there are sales taxes of 9% of prepared meals, hotel rooms, and vehicle rentals. The state also collects excise taxes on gasoline, cigarettes, alcohol, and electricity.

Alaska

Along with New Hampshire, Alaska is one of the only states that has no sales tax as well as no personal income tax. Most of the state's revenues come from petroleum resources, which have also allowed Alaska to pay its citizens a five-figure dividend every year since the 1980s.

Unlike other states on this list, however, Alaska allows local governments (like boroughs and municipalities) to collect local sales taxes of up to 7%. The two largest cities in Alaska, Fairbanks and Anchorage, do not charge a local sales tax while the capital Juneau collects 5%.

Oregon

While Oregon has no sales tax, this is partially because it has one of the highest state income taxes in the country and is generally considered a high-tax state. State legislature has considered implementing a sales tax multiple times, but the measure has never passed.

While no localities in Oregon collect a general sales tax, many local governments impose taxes on specific purchases including hotel rentals and prepared foods. There are also state taxes on lodging, alcohol, and telecommunications that are usually passed on the the customer.

Delaware

Delaware, known for having a business-friendly climate, has no state sales tax largely as a method of attracting shoppers from neighboring states like Pennsylvania, New Jersey, and Maryland, all of which have sales taxes. Over 40% of the state's revenues instead come from corporate taxes from the many out of state companies that choose to register in Delaware.

Delaware does impose a gross receipts tax of up to 1.92% on the income of many businesses within the state, as well as a 3.75% registration fee on vehicle purchases which must be paid by the consumer.

Montana

Montana has no state sales tax, and makes up for the lost revenue via state income taxes and the taxation of natural resources.

Some tourist-heavy cities in Montana do collect local sales taxes of 3%-7% on certain types of transactions, often including lodging and vehicle rentals.

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Old 08-19-2018, 12:45 AM
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In most cases that I know of, you should only have to pay the tax in the state you register the car in. As far as reducing the amount, at least in Missouri, if you trade a car in or sell another car within 180 days of buying a new one, you can reduce the taxable amount by the trade in value or the amount you sell the other car for.
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Old 08-19-2018, 01:14 AM
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John Ulrich
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Out here in AZ a lot of the higher value cars have Montana plates. They set up an LLC and get an address....

https://www.autotrader.com/car-news/...license-256721
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Old 08-19-2018, 01:41 AM
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Another way to reduce tax is trade a vehicle and you only pay on the difference.

BTW, sales tax is a rip off. How is that you pay the tax now and if you sell the car in on month the new buyer pays the tax again?

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Old 08-19-2018, 01:50 AM
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Yes, and no. Plain and simple.
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Old 08-19-2018, 06:40 AM
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Originally Posted by John Ulrich View Post
Out here in AZ a lot of the higher value cars have Montana plates. They set up an LLC and get an address....

https://www.autotrader.com/car-news/...license-256721
LOL...Montana LLCs for registration can lead to some serious legal issues with state useage laws and insurance...so recommend you are careful with these scams.
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Old 08-19-2018, 07:08 AM
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Originally Posted by John Ulrich View Post
Out here in AZ a lot of the higher value cars have Montana plates. They set up an LLC and get an address....

https://www.autotrader.com/car-news/...license-256721
And they are commiting a crime... Just saying...
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Old 08-19-2018, 07:11 AM
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Originally Posted by djnice View Post
Another way to reduce tax is trade a vehicle and you only pay on the difference.

BTW, sales tax is a rip off. How is that you pay the tax now and if you sell the car in on month the new buyer pays the tax again?
Rip off? You elected them... This wasn't foisted on you by someone else...
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Old 08-19-2018, 08:14 AM
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Originally Posted by djnice View Post
Another way to reduce tax is trade a vehicle and you only pay on the difference.

BTW, sales tax is a rip off. How is that you pay the tax now and if you sell the car in on month the new buyer pays the tax again?
Yes it is.
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Old 08-19-2018, 09:04 AM
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Originally Posted by djnice View Post
Another way to reduce tax is trade a vehicle and you only pay on the difference.

BTW, sales tax is a rip off. How is that you pay the tax now and if you sell the car in on month the new buyer pays the tax again?
They need to collect taxes from somewhere, and by all accounts they’re not collecting enough.
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Old 08-19-2018, 09:12 AM
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Originally Posted by capeli View Post


They need to collect taxes from somewhere, and by all accounts they’re not collecting enough.
Whatever, Bernie Sanders.

We’re being taxed when we earn it, when we buy it, when we register to use it and when we fuel it. I’d say we’re paying plenty.
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Old 08-19-2018, 09:26 AM
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Kevin A Jones
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I wouldn't recommend moving to another state, or doing something illegal just to avoid paying sales taxes on a car, just suck it up and pay to play.
And yes, you typically pay sales taxes in the state where you live and register the car. You will most likely have to sign a tax exempt form
stating why you are not paying sales tax n the purchase state and many restrict you from driving new vehicle away from dealership and require
you have a commercial hauler pick it up.
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Old 08-19-2018, 09:30 AM
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You pay the sales tax of the state you declare on the bill of sale and thus register it in.
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Old 08-19-2018, 10:37 AM
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Register the car in Montana or Oregon or a state where there is no sales tax. Keep it out of Tennessee for 3 to 6 months. It varies by state but I believe if you keep your car out of the state you live for at least 3 to 6 months you might be able to avoid the sales tax when you finally bring it in and register it.
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Old 08-19-2018, 10:51 AM
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Originally Posted by C5_ View Post
I'm purchasing a new C7 from a dealer in Maryland, picking the car up in Kentucky at the National Corvette Museum and registering the car in Tennessee where I live. Am I correct in understanding that the sales tax I need to pay is just in Tennessee? That Tax comes to $6,690.00 Is there any legal way to reduce this tax?

Thanks
As you stated you are purchasing from a dealer in Maryland and picking up at BG, so if you did not do a trade-in on the purchase you are going to pay the full amount, even at that it depends on your states laws, in Texas you can trade in anywhere and you are only charged on the difference, your state might not be the same, but it appears you did not do a trade-in. To play any games on the registration is not recommended and more than likely against the law.
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Old 08-19-2018, 12:25 PM
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Good, bad, or otherwise, tax code is generally full of so many loopholes there are a number of ways to “get around” paying a number of vehicle related taxes and fees, all which methods are perfectly legal.
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Old 08-19-2018, 12:34 PM
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State laws vary, but you will not be charged any MD sales tax since you are registering elsewhere.
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Old 08-19-2018, 06:40 PM
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Originally Posted by John Ulrich View Post
Out here in AZ a lot of the higher value cars have Montana plates. They set up an LLC and get an address....

https://www.autotrader.com/car-news/...license-256721
Or some simply have residences in both states.

Last edited by SingleTrackMinded; 08-19-2018 at 06:40 PM.
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Old 08-19-2018, 07:08 PM
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Default Oregon sales tax on new car MSRP’s is now .05%

It is a pitence...... but Oregon does now charge a .05% sales tax on the MSRP of all new cars sold in the state.

This was enacted on 1/1/2018.
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