buying car out of state,do you pay taxes

I think in most states they require you pay taxes when you title it.

 

Form out of State to CA. is $300 transfer fee per vehicle

 

If you never title and/or register it in the state you buy it, you won't pay any taxes there.

 

I just bought a car (328) from California, and I live in Wisconsin. I paid no tax.........that will be paid when I regester the car with WI, pay the taxes, registration title and plates. I will get the car and the original CA title. When I register the car, WI will take the CA title and issue me a WI title........that will take a few weeks.

Some States have recipratory (sp?) agreements......these are usually with adjoining States. Last year I bought a boat from an Indiana dealership. They collected the WI tax, registration, title, etc. They sent it to the State of WI, and I recieved my new State boat title, and stickers, from WI. When I bought a Ferrari in Illinois, they did not collect the tax.

It appears to vary between States........so you will have to ask.

My examples relate to buying from a dealer. If one would buy from a private person, than I would think that one would pay the money, without the tax, collect the original title, and submit it to the buyer's State DMV department. Here, the buyer would then pay the tax, etc.

It seems that States have those recipratory agreements so that they can be assured of getting the taxes due. Ever wonder why you see some car ads that state "never titled"? I think it is due to the fact that one buys a car out State, doesn't title it, and then tries to re-sell it, without ever paying the taxes.

I hope this makes sense.

 

You pay no taxes to the selling state even if the dealer says he's collecting for CA. If he pulls that crap, have him fax you his CA sales tax certificate!

You pay here at the DMV when you register the car.

 

Best to pick up the Vaseline before you get there.

 

As Bullfighter and GCalo have mentioned, you'll pay a "Use Tax" (aka sales tax) at the DMV based on your county's sales tax rate on the full purchase amount. Where I live (Santa Clara Co.) it is 8.25%.

The only upside, if there is one, is that I've never been asked for a bill of sale stating what my purchase price was - it's always been verbal. Take that to mean what you want....

 

Ditto

 

Yeah, I sure did.

 

This is the way it works in most states (there are a few exceptions). You only pay tax to the state where YOU are registering the car for the first time. If you move and transfer the title to a different state (still in your name), you will pay the title fees, but not any tax. You never pay tax in the state you are buying the car from (unless you are registering it in the same state, in state purchase).

 

This is very true!

 

Do a google search on Montana lawyers who specialize in setting up LLC corps. This has become a cottage industry of sorts, especially people who purchase large $$$$ RV's...next time you are in CA, check out how many high line cars are registered in MT. I think you will get your answer on how to av..d the dreaded sales tax.

MB

 

Well, first of all, you probably should be asking this on the Northern California forum.

I think in California you can buy the car, and immediately pay the sales tax at the DMV when you registar the car. However if you own the car for six months and not bring into the state until after the six months are over, then you can skip paying the sales tax. There are some other charges though that add up to nearly what the sales tax amounts to. At least that was the the way it way when I lived there several years ago. Back when I was playing with airplanes use to claim that our airplane were in, "tax exile." I suggest that you take a look at the California DMV web site and you'll find the real info there. You could also get an appointment and go down and ask them. You might be able to ask on line.

If you're buying a car in California and live somewhere else, then just tell the dealer that you want to take delivery in whatever state you live in.


Bob Wassam

 

I read a few years ago that MT has one of the largest numbers of registered ferraris(older cars ie; collector) in the US. I'm not sure that is true, maybe per capita. Its interesting when you go to shows like Pebble Beach and see cars with Montana plates that have the county no. on them but you have never seen before on the streets were you live, hahaha. There is no sales tax here, can you imagine 7% or so on a $10 mil GTO. Regards, Vern

 

A few years ago, I flew to Southern Ca, looked at a car and bought it. I was told by the dealer that I had two options. 1) Have the car shipped to my home state 2) Pay Ca sales tax and drive the car home. I didn't like either and we worked out a deal where I drove the sales person's truck to the Nevada border and he drove the 996-tt. We then traded rides. The really strange thing was that when I received the paper work and went to register the car, I was told I didn't have to pay sales tax. I still don't quite get what happened but I think the Ca dealer registered the car in my name in Ca so the title looked as if I had moved and was just getting new tags in my home state. Saved about $5k.

 

In '04 I bought a car from a dealer in Colorado and in '06 a car from a private party in California and shipped them to Hawaii. Paid no tax in the two states where purchased and no tax in Hawaii on registration, as they were used cars. On the other hand, I had to pay to ship them to Hawaii. . . .

 

Private party sales in AZ have no tax

 

The local news here in Denver just did a story, seems some antsy-pansty reporter wanted to do a story on this, bascially saying the state is losing revenue. Backlash must have been people saying the taxes were too high (15K PER YEAR on a new RV for "property tax") because they did a follow up saying "Colorado taxes lower than most, no excuse not to pay tax on vehicles". Seems there is a toll-free number to "snitch on your neighbor" if you see it with "out of state" tags. Not sure, but I think you can get jail time.

....-fast forward 2 days-....

The main auditor for the STATE revenue service was just arrested for embezelling over $5 Million to her boyfriend via FAKE income tax returns.

...... SURE colorado really needs the sales tax revenue.... to put in thier own pockets!.....

Sorry, just hacks me off.... I think I'm registering my FCar (when I buy one) at my dads place in Tennessee. No emissions, sales tax at time of sale, but no recurring property tax, plates are like $30 per year.

James in Denver

 

In MA, you pay all sales tax when you register the vehicle at the RMV. That way it doesn't matter where you buy it, you pay 6% MA sales tax on it. Sucked for me, I bought my Z in NH where there's 0% sales tax... Still got raped.

 

Keep in mind if you buy from a dealer and finance the car through the dealer, they will most likely HAVE to collect the out of state taxes and register the car on your behalf in order to perfect the lien on the title.

For a cash sale, the dealer can likely issue some sort of temporary plate (NY calls it an "In Transit Permit") which usually carries a small fee that goes to the selling state. The buyer would then need to register the car and pay whatever taxes are then due in their home state.

Endaar

 

Downside of that if that if wrecked, and a dispute arises over the value, your declaration on the DMV form will come back to haunt you.

Art

 

You will only pay tax in the state where you register the car. However there are some states that may carry a local tax. Also some states will charge you sales tax on the difference , if there was a trade. Consult you r local DMV jurisdiction.

 

I bought my car in Indiana. I had to pay 6% sales tax on the purchase price. When the car gets here, I'll pay an additional 1.5% Cali. sales tax to register. Sounds fishy, but I called the Cali. DMV and it's all legit.
Bee Jay

 

Yes, I am in Florida and bought my 360 from a Ferrari Dealer in AZ. Took delivery in FL, got an AZ title in my name. Still had to pay tax in FL--now if I could have proved I had lived in AZ for 6 months after I bought it, I could register it in FL with no taxes.