Icy350

iTrader: (18)

Just a question to those of you who bought their is x50 in another state other then their own. When purchasing the vehicle, did you pay the vehicles state tax rate or did you pay your residential states tax rate? Thanks a bunch

MxChase

I bought mine in California and didn't pay any sales tax there. Where I registered it in Utah I paid the sales tax to the DMV in Utah.

IS350rock

I bought my car in Utah and didn't pay sales tax on the car or warranty. I payed my taxes in WA to the DmV in my town?

is250cpo

iTrader: (1)

you have to pay taxes on the state you are registered at regardless of which state you buy it from. Also check your state rules to see if you can reduce the taxable amount by your trade in if you are trading a car in (has to be done through a dealer though, cannot deduct a private sale as a trade in)
i.e. price is 25k, trade in 10k, in some states you are then only required to pay sales tax for 15k not the full 25k. In states like ny, you save close to 9% for that trade in.
Make sure you remind the dealers from another state since they will not know about sales tax rules for your state.

Micaiah

^^^ That's really good to know. Thanks for that tip!

calvin2376

iTrader: (2)

^ This is correct. You don't pay taxes on a car when you purchase it, you pay when you register it. I live in Maryland but bought my last car in Virginia; I didn't pay any taxes when I bought it in Virginia, but I did pay taxes on the car when I registered the car in Maryland. And Maryland is a state in which sales tax is calculated on the net price of the car (the difference between the agreed-upon purchase price of the car and the agreed-upon value of the trade-in.

For an example with numbers, the car I bought was about $25k and my trade-in was $8k, and Maryland vehicle tax is 6%. So in vehicle taxes when I registered my car, I paid ($25k - $8k) * 6% = $1,020. If Maryland had not been a state wherein I could deduct the value of the trade-in, I would have paid $25k * 6% = $1,500.

Icy350

iTrader: (18)

Thanks a bunch guys, im in NY so im pretty sure i only get taxed on the net amount.

NickTomsyc

+1 for at home

I bought mine in IL and when I titled/registered it in WI thats when I got hit

Gville350

iTrader: (10)

Live in SC. Flew into NJ, paid for car and SC state taxes, drove the 350 home.

oblivionis

iTrader: (2)

I purchased my IS in California and the dealership insisted that I had to pay the tax there which I did. When I registered the car in Illinois I showed them my receipt which showed the tax payed and I didn't have to pay it in Illinois. This was in 2007.

Acingteam

iTrader: (2)

Not all this is entirely true. When I purchased my IS from another state (MA), they forced me to pay MA sales tax. Then when I registered my car in CT, I was tax exempt since I already paid taxes in another state. So you may run into that as well.

dproto09

Hey just my 2 cent. I live in nyc, I bought my car in Connecticut from a dealer. I paid sales tax basis on where I m registering the vehicle. Which in nyc is 8.875%. They also did all the paper work for me. Which I got my registration from the dmv it show the amount of sale tax pay. If you buy the car.privately you only pay sales tax when you go to register the car.

StpdSavant

Like many here, the selling dealer did not charge sales tax (and had a document confirming as such) knowing I was from another state. Upon registration in my home state of GA, that's when sales tax was paid.

Like others have experienced, however, I was prepared to pay sales tax to the seller and then bring proof to my DMV to prove that sales tax had been paid. Also, however, to be safe, check that NY has a "reciprocal agreement" with the state you are purchasing from so that NY recognizes the sales tax you've already paid (I had read that there is a possibility that some states do not recognize sales tax paid in another state - not sure of the veracity of that claim but better to check now and be sure than be stuck with paying sales tax twice).

BLexodus

iTrader: (1)

Like most here, I only paid taxes in my state (Ohio) even though I bought the car in KY. I have bought other cars from Indiana and South Carolina and its always the same deal... I only pay taxes in my resident state.

ThermonMer

GOOGLE STATE TAX MOTOR VEHICLE RECIPROCITY. EVERY STATE TO STATE IS DIFFERENT.

sales tax has specific exceptions specifically for motor vehicle tax. there are reciprocities between all 50 states. google it, and youll find the PDF to see what states are interchangeable.

for example, if you lease/finance a car in state 'A', and pay sales tax in full up front, then re-register the car in state 'B' the following day, your monthly payments would go from being tax-free to now including state 'B's sales tax...which means you would have given state 'a' the full amount of sales tax just to of had the car registered there for a single day. non-refundable.

i almost got into big trouble when i moved to florida one week after leasing the car in NY. turns out the states just so happened to have reciprocity. but lexus financial made the mistake thinking they werent. they raised my lease payment $50/mo, and basically said i paid NYS $1500 in taxes for nothing. i had to do all of the leg work to prove them that NY and FL did have motor vehicle tax reciprocity. i lucked out - many states do not (which is why lexus financial made the mistake based on a blanket assumption).