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Vehicle Sales Tax Questions



  • qbrozenqbrozen Posts: 17,150
    edited March 2012
    I've never heard of that.

    And it is completely ridiculous because what if you wanted to pay a down payment? How would they work that out? It makes no sense.

    I've only purchase one car out of state that I financed and that dealer (in PA) took the money I paid out of pocket for NJ sales tax and gave it to NJ themselves.

    '13 Stang GT; '86 Benz 300E; '98 Volvo S70; '12 Leaf; '14 Town&Country

  • zyaaaaazyaaaaa Posts: 36
    Florida offers a sales tax credit on the trade-in value when purchasing another vehicle. My question is - if the current vehicle is in my wife's name only and we trade it in for a new car that is only in my name, will we still get credit for the trade-in when the tax is calculated?
  • zyaaaaazyaaaaa Posts: 36
    I spoke to the DoR today. They told me that as long as the trade was part of the same transaction the value of the trade in is credited towards price for the sales tax calculation.
  • wwj1wwj1 Posts: 1
    Illinois vehicle sales tax is very confusing. Check this site for a pretty good overall answer for anyone in the Chicago area.
  • doowledoowle Posts: 1
    Question from Auto Dealer point of view:
    Usually when we have an out of state resident purchase a car here in California, we deliver the vehicle outside of California on a one-trip permit. These out of state delivery sales are usually to residents of Arizona, Oregon, or Nevada. We collect no sales/use taxes, and the buyer has to pay sales/use tax in their resident state when they title the car there.

    However, we have a lot of (non-cash) buyers asking how they can include the sales tax in the amount financed.
    We were talking about what if we were to give the people who live in states w/reciprocity one-trip permits (to avoid DMV registration fees becoming due) but did NOT deliver the vehicle outside CA, so CA sales tax would be due and could be included in the contract.
    Assuming they live in a state with reciprocity, when they title the vehicle in their home state they would then only have to pay the difference btw what is normally due in their state less whatever was paid in CA, is that correct?

    And if so, what rate would we collect? Would we collect including the full county/city sales & use tax rate of where it was sold? Or....?
  • dwynnedwynne Posts: 4,018
    I have done many out of state deals - as a purchaser or lessee. Often the dealer will write me a check to pay the taxes, sometimes they write a check to my DMV (those can be tricky to use), and my credit union sent me two checks - one to me for the taxes and one to the dealer. In all cases I handled the taxes and title myself. I guess a certain amount of trust is needed as in some cases I could have not done the title correctly. Often the MSO will already be filled out by the dealer (to limit mistakes or intentional changes). In all cases the dealer relied on my knowledge of my state and local rates and fees. If a customer does not know this info the I am not sure how they expect the out of state dealer to know it :)

    Usually the bulk of the tax burden can be easily found so this large amount could be included in the deal, then let the customer worry about the smaller fees and such.
  • jwilliams2jwilliams2 Posts: 855
    Our lenders always required us to handle the registration for all financed or leased cars. We either did it ourselves or used one of several outside vendors who specialized in this.

    We had to provide copies of the registration paperwork to the lenders in order to get funded, and we did a lot of out of state sales. So we never had a problem with rolling in the taxes, as the dealership paid them to the State involved and then included them in the amount financed.
  • Hi,

    I live in Alabama. I purchased/financed a car in georgia. When I went to my local DMV to get the cars registration/tag they informed me that the dealership charged a 7% sales tax when my state only charged 3%. She then informed me that the state will send me a refund for the difference. Now I had wanted in line forever, and it was very busy to I just said "oh ok" and left. Now, I don't know if that money is mine to keep or go back to the dealership or what. Also, I'm trying to figure up the difference. Is it the percentage on only the sale price of the car or after the finance charges are factored in or what? Totally confused any help is appreciated!
  • igozoomzoomigozoomzoom Waleska, GeorgiaPosts: 790
    Total sales tax in Georgia is calculated based on the total selling price of the vehicle MINUS any trade-in allowance (if applicable). Finance charges don't factor into the tax calculation.

    You should start by contacting the dealership where you purchased the vehicle. Ask to speak to someone in the business office and you just might find someone willing to help....but probably not! =(

    The next step would be to contact the Georgia Dept of Revenue and explain your situation. Here is a link to their Sales & Use Website, including some forms that might help you- GA DOR

    I am a resident of Georgia and I have purchased my last two vehicles in Tennessee. In both cases, the dealer didn't charge any Sales Tax and had me sign forms stating that I was an out-of-state resident. I also had to sign sworn statement that I would be immediately transporting the vehicles to Georgia and registering them there.

    Before I could purchase a Georgia tag, I had to visit the nearest DOR office and pay the applicable Sales Tax rate for my county- (6%). The county tag office required proof that the tax was paid before they would register the vehicle.

    Good luck!
  • 99s7099s70 Posts: 1
    I believe the above reference is outdated. Section 6 Line 4 of ST-556 now refers to the buyers tax rate.
  • you pay tax on the price on the back of the title, whatever you and whoever is selling it agree on minus taxes, i'm sure you could ask them what price they'll be putting on the title
  • pefredpefred Posts: 1
    In 2012, the GA Legislature passed a bill, a part of which eliminated a really great part that stated that, and I paraphrase here, "people who buy used cars from individuals do not have to pay sales tax". The new law treats individual and dealer purchases the same. However, although the law was effective on 01/01/13, portions of the law don't go into effect until 03/01/13. However, I have not been able to figure out if the individual used car sales tax portion went into effect on January 1, or goes into effect on March 1.

    So, here's my question for anybody who knows the new law. I'm planning on selling one of my cars between now January 7 and March 1 on AutoTrader as an individual. If I sell the care prior to 03/01/13, does the buyer have to pay any sales tax. Any help would be appreciated.
  • I purchased a vehicle from my daughter, is there sales tax on family member to family member purchases in ohio ?
  • cp9974cp9974 Posts: 1
    I have searched the web extensively and these forums but I can't find a definitive answer regarding purchasing in AZ as an out-of-state resident driving it back to my MN where I reside. I have actually read conflicting things about AZ in particular.

    The dealership quoted me with a city tax.

    Can someone please advise?
  • igozoomzoomigozoomzoom Waleska, GeorgiaPosts: 790
    Here is the info on the topic on the Arizona Dept of Revenue site-

    If it becomes too much of a nightmare, is it absolutely essential that you buy the car in AZ? Or can you return to MN and buy it instead?
  • glayfan40glayfan40 Posts: 21

    I've purchased a new vehicle back in Jan of this year and paid the MA sales tax ($1500 and change). I've since sold the vehicle in June to a dealership. Am I entitled to a partial refund of the sales tax I paid originally?

  • I took over a lease from an individual in Orth Carolina , I live in Illinois , went to get plates today and the DMV said I had to pay sales tax on the original purchas price even though there is only 9months left on the original 36 month lease. So I would be paying $2600.00 so I can drive for 9months . Seem to be a very unjust law. My question is since this is least to my company can I register it in nearby Wisconsin where they appear to understand what a lease is and how they work. What is the legal penalties for doing so, if the fine is less than the tax, I'm thinking of doing it that way.
  • thegreythegrey Posts: 12

    I have a question: if I were to move to MD (6% tax on cap price of entire car) with a lease in progress, and I were previously leasing in PA (10% tax on payments) - would I have to pay the difference in the taxes backdating from when the car was initially leased?

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