ErseOne

I have a Georgia license and want to purchase a car in NJ. Which state tax % will the dealer use? The car will be insured and registered in Georgia. Thanks.

(Sorry if this is in the wrong section!)

Tramix

Tax is charged based on where you live. So even though you are buying a car in NJ you will be charged Georgia tax. Also depending on dealer...they will usually charge $250 for out of state DMV/title work. If actual cost is less you get reimbursed the difference. If paying cash you can opt to register/title the car yourself and will need a ST-10 form(which dealer can provide)

ErseOne

Thanks!

mmarshall

That law applies anywhere in the U.S.....in all 50 states. If you buy an American-spec vehicle from a dealer licensed to do buisness in any state, you will pay whatever tax your home state would charge if you bought it within its borders. And, yes, that GA tax money you pay in NJ for your car DOES go right back down to the state treasury in Atlanta....the NJ dealership forwards it to the state of GA, where it continues to fund those nice GA State Troopers.

However, that does NOT always mean that you will necessarily save money getting a new car out of state. You may or may not. Other factors are also involved besides just taxes, such as the dealer processing fee. A good example of this is my local area, which includes, DC, MD, and VA. VA has a 3% tax on new cars (though it may be going up shortly), MD has 5%. But that is sometimes cancelled out by the fact that VA has no limit on dealer-processing fees, which can sometimes run several hundred dollars..........MD limits them to $99. Tramax, above, also explained how DMV fees can vary.

AZ-GS300

When I bought my Scion new at a dealership in Missouri, I paid no tax on it there. I did however, have to pay state tax when I got it home and registered it in Phoenix. The good news is that I only had to pay state tax. No city taxes were employed.

This may only apply for a new car. Check your area. When I've bought used cars from out of state, there have never been taxes applied.

mmarshall

Maybe the state of MO has an arrangement with out-of-state dealerships to forego collecting the tax, or that may be a state law (Or it may mean that MO's Treasury officials don't trust out-state dealerships to send them the MO taxes they collect). But the principle is still the same.....YOU paid the same MO tax either way............just a little later, when you registered it, instead of sooner, when you bought it. Financially, there's no difference.

MD350

This is why my family who lives in Northern VA buys their cars in Maryland. Save $$ on that processing fee.

But, as you know, then you have certain states who have personal property tax imposed and those that don't....that is a whole 'nother ball of wax.

The bottom line is that you are going to get taxed based on the rate that you register the car in. Gee, that would be a great loop hole if you paid the tax rate in the state you bought your car in.

4ntvings

iTrader: (6)

in cali, you pay the tax rate of the city which you reside in.
i bought a car in different county and wasnt able to get the lower tax rate in that county.

mmarshall

Well, again, like I said earlier, you may or may not save money with the lower processing fee. Other factors are involved.

In MD, BTW, I have found the Fitzgerald chain in the Rockville-Gaithersburg area generally good dealerships to do buisness with. They are straightforward, have no-haggle Internet-discount pricing which includes the processing fee, don't insert any hidden charges, offer you a simple choice of Regular or Value Pricing (which includes some free maintenence with it), add tax...in your case the 3% VA tax (and tags if applicable), and you're on your way.

ErseOne

The thing is that I work in NY and have a GA license. Hopefully I will purchase a GS430 in NJ. I don't want to pay NY/NJ taxes b/c I know they're more than GA's 7%. It will be registered and insured in GA.

Trying to get the loan with different addresses is the bigger headache...GA license, employed in NY, cosigner in NY, car in NJ, etc...

gsrthomas

iTrader: (1)

Its simple.

Buy a car out of state (like Oregon, no sales tax there). Its even better if you know a person living in that state. Purchase the car there. Register it in OR under the person you know address. Drive it down to your state (my state is Cali). Drive around with Oregon plates for 20 months (last time I checked it was around 1.5-2 years). After this time period register it in Cali and pay NO TAX.

This is what my friend did and it worked. Saved him $4k.

gengar

Not legal to keep out-of-state plates and registration if you are residing and working in California. I believe the limit is 20 days. Obviously people can get away with it, but be aware that most of those working in CA who keep their cars registered out of state do so to evade CA's state income tax, so doing so may invite scrutiny from the FTB.

mmarshall

To keep from paying the NY or NJ tax, the car, in your case must be registered in another state....in your case, GA. But that will only work for so long, especially in states like mine (VA) that collect an annual personal property tax on the car's value, in addition to the usual registration fees and sales tax. I don't know all the taxes that NJ or NY collect on vehicles registered there, but I know that if you live there, you will have to register your car there sooner or later to avoid tax evasion......there are stiff fines for that if you get caught. You may eventually have to get a NY driver's license too......I'm not sure about the law on that.

gsrthomas

iTrader: (1)

Its easy. In my college half the cars were out of state ones. You can easily say you are going to school here in Cali. My coworker has Washington plates and she been living here for 3 years.

And its way more than 20 days. It was 18 months when my friend did it. If you register it before 18 months the DMV charged you sales tax. After the time limit its tax free.

Corey140

GA has a car tax like VA too. Ad valorem or whatever they called it....