Vehicle Sales Tax Questions

steveni345

Is the 2006 hybrid tax credit affected by the alternate minimum tax? That is if you end up having to pay the alternate minimum tax do you end up losing all or parrt of the hybrid tax credit?

matthewt24

Not sure if this has been discussed, but I didn't have time read all 300 posts, and nothing came up on the search.

If I were to move to another state with a different sales tax rate, would my monthly lease payment change?

lakewood1

I am thinking of purchasing a car in Florida. Am a New Jersey resident. Would there be extra fees or taxes that have to be paid to both States? Can I use my NJ plates from the car I will trade in? Thanks - Lakewood1

needporsche

Hi there,
Does NY have sales tax deduction for trade-in?

Thanks a lot

enojon2

What is the sales tax and registration and financing fees normally for Louisana. My brother says he has to pay an extra 2,000 even if he buys out of state. :mad:

bjohnson2

I have just returned from Europe where I was stationed while in the military. I am no longer in the military but purchase a 1985 Jaguar while in europe.

If I register this car in Pennsylvania ( where I intend to live and work) will I have to pay sales tax on this vehicle??

torpg20

Hi - I'm planning on purchasing a used vehicle from a MD dealership but in live in VA. Does anyone know what sales tax I should be paying, given MD has a 5% rate and VA has a 3% rate? Thanks!

exb0

You will pay VA 3% rate.

yippeee33

I am thinking about assuming an existing auto lease that originated in OH. The sales tax was already calculated and paid on the original lease. Now US Bank (the lien holder) wants to also get sales tax for Colorado as part of the monthly payment. This seems like double taxation, as Colorado should be asking OH for their portion of the tax already paid. Does anyone know how to work this issue out, or do I have to bite the bullet and pay sales tax again?

exm

Hi:

I'll be moving soon with to NY from NJ. My June 2005 Infiniti FX35 is financed through IFS and obviously I've paid NJ sales tax and have NJ plates/insurance.

Now I'm really confused about re-registering my car in NY and sales tax: apparantly they will hit me with NY taxes (based on it's current value and not new value I assume?) However, according to http://www.nydmv.state.ny.us/forms/dtf804.pdf, NYS doesn't allow any credit for taxes paid in NJ and I can't find any information on DMV NJ regarding refunding paid sales tax. I can't imagine that I've to pay double salex tax though!

Does anyone have any experience with this?

dougb4

If I fly into Calif. purchase a used car from a private party, use a 3 day registration permit from Arizona to drive back to Arizona, and then permanently register it; will the seller or me be required to pay Calif. sales/use taxes?

dlim899

If you drive your vehicle on California road, you have to pay the CA sales tax. The "One Way Trip" permit only allows you to drive back to your hometown before you need to register the vehicle. The only way to avoid sales tax is if you have the vehicle trucked to the stateline.

bobst

That's amazing, Dlim.

In the East, we treat people from other states nicer.

We live in Virginia. On more than one occasion, I have bought a car in maryland and paid no Maryland sales tax. When I registered the cars in Virginia, that's when I paid the tax.

mindi1

If anyone has any suggestions, I would really appreciate it. I bought my car in CA 3 years ago and recently moved to LA. When I attempted to get the car registered, they informed me that I would have to pay sales tax on the current value of the car. When I explained I've already paid the sales tax in CA, they did not care. So, I decided not to register it.

Of course, I got a ticket for expired plates and failure to register. Well, I'm in a tough situation now. I do not mind paying the registration fees, etc., but absolutely do not feel it's fair to have to pay this outrageous amount in taxes when a purchase has not even been made! For the first time in my life I actually intend to plead "not guilty" when I go to court next month.

While my friends and family empathize with me, they do not believe I should fight it. I, on the other hand, would rather pay a lawyer twice as much as the sales tax based on principle.

So, my question is... has there ever been a precedent to this? Does anyone know how to look up laws? What is the best way to fight this when I go to court without looking like some whinny woman that just doesn't want to pay her taxes? I am an educated, responsible woman that does not try to get out of general obligations of a citizen. This is just ridiculous and the law should be changed.

If someone doesn't stand up to the government when the laws are unjust, they will just continue screwing everyone.

Any advice?

richardcraft

I am moving from NC to CA for 1 year, and purchasing a vehicle in IL. In which of the 3 states should I have the car titled--least expensive? The company will pay to transport the car, but I'm wondering if it's less expensive to take it back to NC for tags, registration, insurance, etc., then have it shipped to CA. Does anyone know the vehicle tax rates in these states? Any advice? Thanks!

bobst

We bought a new car in Florida in 1972 and paid the sales tax. When we moved to Maryland later that year we had to pay the 3% Maryland sales tax to register the car.

When we moved to Virginia in 1980 it was very cheap to register our two cars.

Each state has its own laws and they have probably been on the books for years, so I doubt the Supreme Court would find them to be unjust.

I think you will have to pay up.

geo9

The 2nd "tax" you Ca, Va, Nevada and other states are paying upon registering the car in those states (after
you initally paid sales tax in the other state where
you bought and 1st. registered it is a use tax, city sticker tax,plate fee or whatever that state calls it and is based on the cars current value...............

I never paid a 2nd "sales tax" on ANY car I bought in
Fl or NY and registered it then reregistered in either
state.............

epaschall

This is my first time buying a new car and I'm very confused. I'm moving from Michigan to California in a couple months, and my question is -- should I buy a new car in Michigan before I leave or in California after I arrive? Assuming that the vehicle passes CA emissions standards, what are the differences in registration fees, sales tax, and everything else? And would I be required to pay the difference in sales tax (6% in MI) when I register my car in CA?

Thanks,
Erik

bobst

Based on what I learned from the last few posts, buy the car in CA.

The alternative? When you get to CA, become a hippie surfer and live on the beach. Then you won't need a car.

tomkozski

Hello all,

I currently live in Illinois, but moving soon to Virginia. I'm thinking of buying a car (new or used, not sure yet) while still in IL, roughly a week or two weeks before I move. If I purchase the car in IL (I'll still have a IL driver's license), will I have to pay IL sales tax, even though I'll be moving to VA soon after the purchase? I will want to register the car in VA. Will a IL dealer issue temp. plates, or will I have to register the car twice?

bobst

Why not buy the car here in Virginia? Our sales tax is only 3%, even though our newly elected Democratic governor wants to increase it to 5%.

I bought a car in Maryland a few years ago and they gave me a temporary tag, but I could prove that I was a VA resident at the time. Since you are not yeat a VA resident, maybe it would not work for you.

qbrozen

hey stickguy, did you ever get a real solid answer to your question? I'm also wondering if there is any sales tax benefit to trading in a vehicle on a new lease deal. I also asked in another thread a while back and never got an answer.

qbrozen

yes, if you go to a dealer, they will give you a temporary plate (just confirm before finalizing the deal, but I've never met a dealer who wouldn't give a temporary). You can then drive to Virginia and register the car and pay sales tax there.

Only problem might be getting proof of residence before the temporary expires.

stickguy

I ended up buying an Accord and trading in the tC, so I never did find out exactly how the tax would work, but the salesguy was pretty sure that you got bumpcus.

anonymousposts

There is no benefit to trading a vehicle in on a lease in most states. Reason why is you don't pay sales tax upfront on a lease but pay a use tax that is calculated in to the monthly payment. However, at least in GA, you do get a tax credit if you trade a leased vehicle in on a non-leased vehicle.

jennifert

Hi There, I live in NC, and we have a 3% highway use tax in place of "sales tax" like some other states. Can someone tell me which tax I pay. Both states are 3%, DMV said I would pay use tax on the difference between the "sales price" of the new vehicle and the trade-in vehicle which is roughly $3500 does that sound correct. Is that figured in the sales contract by the dealer? I couldn't seem to get a straight answer from them and she was "put out" by my questions. TIA...Jen

qbrozen

Just did the deal yesterday here in NJ and I did in fact get a tax credit. What they wound up doing was erasing the taxes for all my lease payments. Trade was valued at $14k, my lease payments total near $13k, so I pay zero taxes on all those lease payments.

Too bad I didn't know it when negotiating or I would have paid even less.
Oh well, live and learn.

alexr88

I am currently on the same situation. I bought a car in CA and drove it to TX. I paid the sales tax in CA because I was driving the car. When I got to TX I had to pay the sales Tax again or they would not register my car.

Does anybody know how to fight this? Who should refound my money back, TX or CA?

When I call DMV from either state They are Telling me that once the tax is collected they cannot refund. Is this True?

Alex

alexr88

I am currently on the same situation. I bought a car in CA and drove it to TX. I paid the sales tax in CA because I was driving the car. When I got to TX I had to pay the sales Tax again or they would not register my car.

Does anybody know how to fight this? Who should refound my money back, TX or CA?

When I call DMV from either state They are Telling me that once the tax is collected they cannot refund. Is this True?

Alex

bobst

The same thing happened to me, Alex. We bought a car in Florida and paid the sales tax. A few months later we moved to Maryland and had to pay the sales tax, or registration fee, again.

That's the way it goes, I guess.

sanway

We recently traded our Hummer for a truck. It was an even trade no money exchanged. The Hummer owner lives in Florida and we are in Ohio. Now Ohio says we owe tax on the truck. Is there a way to get out of this?
Thank you for any help.

audia8q

claifiy a little plz.....was this a sale thru a dealership or private party sale and did the transaction take place in two states or just ohio? Also, when you purchased the Hummer what state and did you pay sales tax?

stickguy

At least in NJ, you would owe tax, since they would look at it as you selling the Hummer (which they don't care about) and buying the truck (which they want their piece of the action from).

The only way you avoid sales tax on a trade in (which is effectively what you did) is if it is to a dealer.

sanway

This was a private party sale. The transaction took place in Georgia as the other partly lives in Florida. We purchased the Hummer in Georgia through a dealer, but paid sales tax for it in Ohio.

timuh60

I am in the military and was living in Germany. I purchased a car in Germany (US Specs) and drove it around for 3 months there before I moved back to the US (Georgia). After the car arrived, I registered the car in Georgia and was informed through mail that I owed the State of Georgia over $2000 in sales tax on the car.
I didn't buy it there, I didn't live there when I bought it, nor was it the first time registered. What gives that state the right to tax me on it?

bobst

"What gives that state the right to tax me on it?"

The U.S. Constitution.

bobst

A little more info -

I bet the $2000 fee is a 'registration fee' rather than a sales tax.

It seems fair to me, because you will be driving on Georgia roads and the state needs money to maintain the roads. It also seems fair to get the money from the people who will be driving cars instead of people who will not be driving. The best way is to assess a fee when a car is registered.

If you head down to Plains maybe Jimmy can explain it better.

timuh60

That is not the registration fee. I had to pay $600 for registration when I first got here for road usage. I recieved a letter from the tax office a month after registration specifically saying i owed this money for "sales tax". I just don't think Georgia or anyother state should be taking money from someone on the purchase of something that wasn't bought in that state or registered there when purchased.

british_rover

If you had bought it state side and paid sales tax to some other state you might have a leg to stand on.

When I registered my personal car up in CT they did not charge me any sales tax because I had paid sales tax on the car in VA the year before.

You might still be able to win if you have some documents showing that you paid sales tax in germany but I have a feeling you did not pay sales tax in germany if you were there with the military.

Am I correct?

bobst

I live in Virginia, just across the Potomac River from Maryland. When I bought a car in Maryland, I paid no Maryland sales tax. However, I did have to pay Virginia sales tax.

It sounds like the situation you are in.

tgv0555

My car was recently totaled and now I am attempting to purchase my first car on my own. Here is my question...I was told by someone that when I purchase my new vehicle I shouldn't be taxed for the whole purchasing price. They said it works like a trade-in so that the money I received from my insurance company isn't taxed...only the remaining balence. I have asked a few people about this and nobody has been able to answer me with any certainty. So if anybody can help me out I would appreciate it. I live in Louisiana if that makes a difference. Thanks!

Kirstie_H

Depends on the tax rate where you live, as they are determined by state & municipality. I don't know Louisiana's regulations.

However, when my car was totalled (in Missouri), I received an affadavit from my insurance company listing the amount they paid me for the totalled vehicle. I only had to pay the difference between the purchase price of my new vehicle and the amount the insurance company gave me for the totalled vehicle.

lilminwoo

Hi there,
I am residing in Nashville, TN. I am thinking about purchasing a new car in the state of Georgia. I called the department of revenue today and asked about where I would pay my sales tax. He said I would pay the sales tax at the dealership I buy the car at and then pay the difference of sales tax rates when I come back home to Nashville and register my car. He said I would need documentation showing how much sales tax was paid in Georgia. Does this sound like accurate information? More importantly, do the dealerships provide separate documentation showing how much sales tax was paid on the car?

anonymousposts

Most dealers in Georgia will not collect sales tax if you are registering and titling the car out of state. You will pay no taxes or DMV fees but will have to pay all applicable taxes when you register the vehicle in Tennessee. If the dealer does charge you taxes then Tennessee will give you a credit for what you paid. The sales tax will be listed on your purchase agreement.

holdon187

hey i'm in the military in Japan, did you get a bmw in germany? if so was it pentagon sales?i want one but i don't know if they're the guys to go through to get one also i'm moving to georgia in the next few years how did everything work out so far?

bobst

I'm not the military guy who bought the BMW.

jgarcia1

I'm in the process of buying a 96 Infinity in Dallas Tx. My cost will be around 3500. I'm buying from a private seller. Any idea of the cost to transfer title.
Thank you.

Kirstie_H

No way for us to know all of the tax & titling regulations in each state/municipality. Visit this link for more information:
http://www.dot.state.tx.us/VTR/vtrreginfo.htm?pg=faq

phil_in_socal

hello, looking for topic to properly post this question to and this is the closest one i can find. i apologize if off somewhat.

i'm basically looking into helping a relative obtain a lease based on deals available out there. i've never leased before but in the last couple of weeks had done research on the in & outs, so basically i'm almost clueless (-:

my question is, if i'm to negotiate a lease where i'm only to put out the 1st month lease and dmv fee on a program that's (for example) being advertised with an acquisition fee of lets say $700, if a dealer take my offer with $0 cap cost reduction (plus deal of lets say 10% off msrp on my base cap cost), 1st month lease and dmv fee only being due at drive off.

what happens to the acquisition fee (bank fee) and other costs (e.g. doc prep fee, etc...)? are these costs added to the adjusted cap cost, if so how are these factored in? what would be the proper way of approching this at negotiation?

thanks in adv for help.

qbrozen

yes, they are rolled into the lease.

These bank fees are usually non-negotiable.