Those who purchased a 2is in another state
#1
Those who purchased a 2is in another state
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
#4
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.
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.
#6
Racer
iTrader: (2)
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.
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.
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.
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#12
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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.
Last edited by dproto09; 05-06-11 at 05:27 AM. Reason: spellcheck
#13
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).
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).
#15
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).
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).
Last edited by ThermonMer; 05-10-11 at 04:17 PM.