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Vehicle Sales Tax Questions

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  • aqrt60aqrt60 Posts: 2
    Yes, i financed it through my bank, and Kansas is where it will be registered in and where i claimed residence.
  • paisanpaisan Posts: 21,181
    When we moved to Maryland in 1972, we had to pay 3% of our cars value to register the car.

    I think this is reasonable. Since you are going to be driving on Maryland roads, it is reasonable to ask you to pay for it.


    But you paid for the "road" tax when you originally paid tax to the state where it was originally registered. You've now been double-taxed on the car. Unless Maryland doesn't charge registration fees or fuel taxes you are paying and paying for that use of Maryland roads over and over :)

    -mike
  • nj2pa2ncnj2pa2nc Posts: 813
    when we moved from Pa to north carolina in 2005 we had to pay 3% highway use tax +the other fees to register our cars.When we moved from NJ to Pa in 1994 we did not have to pay any additional taxes. I guess it depends on the states.
  • bobstbobst Posts: 1,783
    Yes, it does seem to depend on the state. When we chose to move to Virginia to avoid the court ordered busing of our school children, we did not have to pay any additional tax to Virginia.
  • whitallwhitall Posts: 187
    I bought a used car. I paid kbb price for a good condition, but I should have paid less, per edmunds. Only agreed to the amount because of the aggravation of finding a suitable car for my teenager in the price range, and he really liked this one and I was tired of looking. The older man selling it got me to go an extra $200 by saying he's give me a receipt for 1000 instead of the approx 6000 I paid for it (cash). I agreed. Now I am worried that the DMV will question me on the price. People say I should say that it needs work done on it, or I thought maybe just say it was a family friend and he gave my kid a break because he doesn't need it anymore (partly true as his wife died and it was for her use). I hate the idea of paying the tax because I am the third owner, so it's been taxes twice already. Plus, my husband will flip out if he finds out we owe hundreds more (7% state).

    Its a 2001 with 85000 miles. It's a midsize family type car. (no more info, in case you are DMV spies!)

    ANy suggestions, maybe pick a more "off" number like 1100?

    I know it's less than honest, but my pocketbook is tired of taxes!! and my marriage will suffer!
  • joel0622joel0622 Posts: 3,302
    Depends on your state. Some states will just let it pass and you pay taxes on the stated amount on the Bill Of Sale. Some states take it more serious and will look at the NADA Value of the car compared to what you are stating the price to be.
  • whitallwhitall Posts: 187
    I'm in NJ. My friend bought a 98 explorer with all options and paid between 3500-4000, she put down 2400 on the title. Book is about 7000. They didn't blink....
  • joel0622joel0622 Posts: 3,302
    Well there is your answer then. I guess at this point you just let your conscious be your guide.

    Myself, I would take the BOS the man offered at a lower price and go title the car.
  • steve326asteve326a Posts: 58
    Unfortunately, here in MA, you wouldn't get away with that. If MA can get their 5% sales or use tax they will. Unless it is immediate family or a MA certified dealer, you will pay full book value tax on it. I bought my car in VA and when I came back up here to MA, they said I had to pay book value tax. I started to question why and immediately the clerk waived over a state trooper who promptly told me that if I question a registry clerk again I will be cuffed and stuffed. He said if I want my car registred I'm to pay what I'm told and no questions about it period, end of discussion.

    Steve :mad:
  • paisanpaisan Posts: 21,181
    NYS has a form you have to fill out and have signed by the seller, basically stating that it's undervalued. It's something like an "undervalued vehicle form" and that allows you to pay whatever is on your reciept.

    -mike
  • I leased a car in Maryland in July 06 and had to pay sales tax on the entire value of the car. I am moving to PA and I have been told I will be charged sales tax on my monthly payment. Can this be right?
  • kyfdxkyfdx Posts: 27,896
    Probably.. and, to rub salt in the wound?

    PA tax on leases is 3% higher than their normal sales tax.. Expect 9%-10% tax on top of your lease payment.

    MODERATOR
    Prices Paid, Lease Questions, SUVs

  • tidestertidester Posts: 10,110
    I'm not so sure about that. If he has paid the full sales tax in Maryland he should be eligible for an exemption in Pennsylvania.

    tidester, host
    SUVs and Smart Shopper
  • kyfdxkyfdx Posts: 27,896
    That's okay.. I'm sure.. ;)

    regards,
    kyfdx
    (not the host here..)

    MODERATOR
    Prices Paid, Lease Questions, SUVs

  • tidestertidester Posts: 10,110
    Wonderful! We do strive for fair and balanced. :shades:

    tidester, host
    SUVs and Smart Shopper
  • suvhuntsuvhunt Posts: 27
    Silly question: If I live in MD and buy a car in VA, what determines the sales tax?
  • grandiosegrandiose Posts: 2
    Maybe this was asked before, but I could not locate the thread. So, if I buy a car from a different zip code (different city as well) within CA will the sales tax be calculated for the city/zip code I live in or for the city/zip code that I purchase the vehicle from?

    Thanx
  • Kirstie_HKirstie_H Posts: 10,837
    The general rule is that you will be charged the applicable rate for where you live rather than for where you purchase.

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  • grandiosegrandiose Posts: 2
    Thanx Kristie_h. Yes, I should've figured it out from the previous posts (how silly of me!)

    Thanx
    --g
  • timmbojtimmboj Posts: 123
    So if I live in Tennessee, and I plan to lease in Pennsylvania is there anything special I need to tell the dealership in Pennsylvania regarding taxes? Or will they just know from my address, and be able to figure all the details? Any special preparations I need to make with the Tennessee government before negotiating?
  • timmbojtimmboj Posts: 123
    Also, I'm looking at a specific vehicle in Chicago, Illinois. If I plan to lease there, but live in Knoxville, Tennessee, what tax issues will arise, if any? Is Illinois better or worse than Pennsylvania?
  • joel0622joel0622 Posts: 3,302
    Email me at my email in my profile. When you get to chicago you can have the F&I guy there call me and I will tell him everything he needs to know about TN taxes.

    One thing you can do though is take the address for the Knox County Clerk with you, that is where they will have to mail all the title work
  • kyfdxkyfdx Posts: 27,896
    Are you still looking for a BMW?

    If so, BMWFS leases in every state.. They will automatically figure your taxes correctly. You pay your tax monthly on the payment in Tennessee, right?

    There should be no tax issues in either PA or IL, because Tennessee is going to tax you on the car..

    regards,
    kyfdx

    MODERATOR
    Prices Paid, Lease Questions, SUVs

  • timmbojtimmboj Posts: 123
    Thanks. Yes. Tax on payment is what I was figuring.

    The car deal had gone back and forth a couple times, and in my head I was pretty much ready to seal the deal (in Eastern Pennsylvania), when the salesperson suddenly mentions their general manager had a past problem regarding tax issues leasing to someone in Tennessee, and that he wouldn't do it again.

    I'm perplexed.

    :(
  • timmbojtimmboj Posts: 123
    Thanks. Just e-mailed you.

    I'm just trying to figure out what to expect, tax rate I think is 7% in Tennessee on vehicles, title fees, registration, plates, etc. so I can be prepared.

    This tax issue has really thrown me for a loop. I wonder if its not just a sales ploy, but I dont' think so because it wasn't like "we can figure out the tax issue if you just pay us this extra fee...". It was just over and done.
  • timmbojtimmboj Posts: 123
    I re-read his e-mail, its not Tennessee he has a problem with.

    His exact words... "We had a problem before with a lease from a distant state on the taxes, and he does not want a repeat, so he said no to this. I can do a finance deal, or cash, but not a lease. I'm sorry, but there is nothing I can do."
  • joel0622joel0622 Posts: 3,302
    It is not a sales ploy. We refuse to do out of state leases also. They always end up being a bigger hassel then the sales is worth. I will be back in the office tomorrow and check out your email.
  • kyfdxkyfdx Posts: 27,896
    Well.. if that is the case with that dealer, then find another one..

    There are plenty of BMW dealers that don't have a problem doing out-of-state leases. BMWFS is in Dublin, Ohio.. and they have plenty of experience with it.

    regards,
    kyfdx

    MODERATOR
    Prices Paid, Lease Questions, SUVs

  • joel0622joel0622 Posts: 3,302
    I am pretty sure you can find a BMW dealer in TN. is it just a matter of the the one in IL has the car you want?
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