taxes when buying a car
Why have to pay sales tax when buying a car out of state, and then pay a tax to title it in your own state?
Anyone ever bought a car from another state.. and have to pay sales tax in that state.. especially when buying from a dealership or auction…
Then bring the title and vehicle to their residential state, and have to pay tax on the vehicle all over again?
What’s up with that bs? Tell me your war stories…
Some car dealers who get a lot of other state buyers will have a notice that says, “out of state buyers no sales tax owed”.
Other dealers also said, “only if loading the vehicle for hauling away to another state no sales tax owed or paid”, but if driving it off the lot they still collect their state taxes.
When you buy a car in one state but live in another, you do NOT pay the sales tax in the state where you purchased it. You pay it in the state where you reside. Dealers now how to do this, they do it all the time in border areas.
The tax is paid to the DMV office when you get your tags although some dealers do collect if from you and pay it to the DMV on your behalf when they get your tags for you. Since you do not reside in the state of purchase, it cannot be registered there so the tax cannot be collected from you.
If you do pay the tax in the state of purchase, virtually all states will credit what you paid to the other state against your liability to your home state. This only happens if you are moving from one state to another, however.
New Car Tax Credit Video – newcars.com Quick-Tips