Vehicle Sales Tax Questions

volvomax

Because AZ doesn't allow them, at least not for sales tax. They have them for the license tax. And because of reciprocity agreements between the different states.

The only way not to pay the tax in AZ is if the car is shipped to the end user in another state.
In other words, the buyer never touches the car in AZ.

joel0622

Hell I bet you don'tdo many out of state deals then do you. That would kill us. We sell to allot of people from KY, AL, and Ga. If they had to pay TN tax and there home state tax they would never come here.

volvomax

You don't get taxed twice silly.
You only pay the difference, if there is any.
AZ state tax is 5.6%.
According to our info, TN state tax is higher.
So, you would pay the difference.

You also pay city and county tax in AZ.

kyfdx

That would depend on the state, wouldn't it? Not every state will give you credit for tax paid in another state, I don't think..

joel0622

Well then what is the purpose other then to confuse the process? Does AZ forward the money you paid to the state you will be titleing the car in?

I am not being a smart [non-permissible content removed], this is really news to me and something I probably should have known before now.

But then again I did not know what a Slush Box or Gleaves was either before I came here.

stickguy

It's Galves, not Gleaves.

Geez, what a chowderhead!

joel0622

Very good!!!

volvomax

You do geta credit in your home state for the tax paid in AZ.
This only works in states that have a reciprocal agreement w/ AZ

volvomax

That is correct.

isshak1

I wonder if any one might help me with answering two questions
Do i need to pay sales tax on a car when i LEASE a car
also do i pay sales tax on my purchsed car again when i move to a different state ??
Thanks you
isshak :confuse:

tidester

The short answer to your first question is "yes" you pay sales tax on a lease. In some cases you pay the entire sales tax up front and in other cases you pay sales tax on each lease payment.

For the second question, that's a "maybe." If you buy a car in a state where you currently reside and then, after the purchase, you move to another state you may get stuck with a "personal property tax" which is not strictly a sales tax. Virginia is one example but there are probably more. Strictly speaking, however, you won't pay sales tax twice but you may have to shell out the difference in one form or another.

Others here will fill you in on details.

tidester, host
SUVs and Smart Shopper

jeff124

Im looking to buy a car that has 1800 miles on it and never been titled. It still carries the MSO and its up for auction on EBAY. Ther person selling it lives in FL and I want to know how does a transaction like this work if Im having it shipped? Do I pay taxes when I buy it? I think I will buying the car from an individual, but it has never been titled and believe he bought it at auction and never titled it. I just want to know how the taxes are going to work on this? DO I pay him taxes or pay taxes when I get the car back to AZ.

volvomax

Well, is it a new car(2007-2008 model?)
Is the person selling the car a licensed dealer?

Chances are, if you bring a car into AZ w/ 1800 miles AND an MSO, you are paying AZ sales tax.
It also depends on what the FLorida laws are as well.
Ask the seller whether or not he has to collect any taxes for FL.

reyna99

I am about to purchase a vehicle and pay tax in VA. Does any one know what the sales tax rate is?

Kirstie_H

Looks like 3% - http://www.dmv.virginia.gov/webdoc/citizen/vehicles/sut.asp

However, I don't know if there's any county or city tax where you live.

pat

I think 3% is correct and I'm not aware of any local tax, just state.

british_rover

I used to live and work in VA and yes 3% is the sales tax on cars. I don't think any particular counties/cities have seperate additional sales tax.

pat

I currently live and work in Virginia and I agree with you.

seascape007

In MA.Do you pay sales tax on the original new car sticker price or the price you actually pay for the car?

bus7

I WOULD GUESS ON THE ACTUAL PRICE ON CAR. THEY CAN'T TAX ON WHAT MONEY U DON'T SPEND. OR CAN THEY?

seascape007

In RI, they make you pay sales tax on the original price of the car. Even if you trade in your car. Also use the cash baxck scheme to rip you off. I can't seem to get a straight answer in MA.

volvomax

Sales tax rates are based on the price you pay for a car.
Some states do give you a credit for a trade in,some don't.

kyfdx

Tax basis is 90% of MSRP, unless you can prove you paid less than that...

No credit for trade-ins..

greanpea68

Seascape... I sell cars in Taxachussetts...

When you buy a car in Mass. You would pay as followed:

MSRP: $20,000
Reabte: $1000
Discount: $1000
Sale price: $18000
Trade value: $8000
Differance: $10,000
You would pay on the difference of $10,000
Ma. Tax rate 5% Total tax $500

Plus registration: $86 New plate or $65 To transfer plates

Plus any doc fees which I have seen range from $195 - $495

Buy to answer your question agian you only pay 5% on the difference.

Hope that helps

GP

aaronwill

Does anyone know if the sales tax is based on total car price or based on net cost of sale (after trade-in value)?

Susan

aaronwill

Oops - saw greanpeace's post from earlier this month after my post appeared. Thanks greanpeace - car sales person in taxachusetts. I live there, what dealership do you work for?

S

joel0622

Here is a good resource for getting info on sales tax and registration for each state.

DMV
Just click on the state you have questions about. All the insurance companies trying to get you to buy a policy are kind of aggrevating but the info is good.

gred1994

Please help. In 2000, I bought a used 1998 VW cabrio from a girl off of her lease. She leased the car in GA, however her car loan was through AM South, which is in Alabama. I bought the car for $15000 and financed $10000. Anyway, two years later I traded in the car for a suburban because I had gotten married and had a baby. I then got a letter stating that I owed a sales tax on the car because it was bought out of state (which it wasn't). I was baffled and mad. I tried to call and find out the original purchase price, but I couldn't remember the girl's name I had bought it from. I spent quite some time trying to solve it, but since I got no where I gave up. Now, my parents just received a notice for me from GA dept. of Revenue that the fee is $2500 because of interest! They don't have my SS# or address. What is the legality of this??

cccompson

What did you pay in the way of sales tax when you acquired it in 2000? Are you sure they are seeking tax on your purchase of the VW and not the Suburban? Exactly when did you get the first notice?

It seems as though some facts are missing here.

gred1994

I bought the car from a private seller and never asked about tax. I just paid her the $15000. I registered the car and paid my ad valorum, etc. I don't know exactly when I got the first notice, but I know it was after I had sold the car. The notice is not for the Suburban. I sold the cabrio in October of 2002 and bought it in July 2000.

cccompson

How could you get a new title without paying the tax? Wherever you title the car is supposed to collect it at the time the new title is issued. Did you title it in Georgia or Alabama?

gred1994

I titled it in GA. I took her title into the registration office and applied for a new title. I paid the fees and left. I thought she had paid the sales tax on the vehilce. Alabama was never a factor in this except for the loan.

joel0622

titled it in GA. I took her title into the registration office and applied for a new title. I paid the fees and left. I thought she had paid the sales tax on the vehilce. Alabama was never a factor in this except for the loan.

Does that mean that you paid taxes in the state of GA based on the $15K you paid for the car? You did everything above board, you didn't have her say she was a relative or get a gift affidavit right?

Also, don't you have a copy of the BOS from when you bought it from her. She would have had to do her part in order to get the title to be able to sell to you in the first place.

Something is missing here.

cccompson

It sounds like either the sale price was declared low or zilch (and GA checked with the seller and found out that wasn't the case) or GA just blew it. If the latter, the OP needs to talk to the appropriate GA office to get this straightened out.

nj2pa2nc

would increase the 3% tax to 6.75% on a new or used car or truck
eliminate the credit for a trade-in vehicle
STOPTHECARTAX.COM

b75

Hi folks,

I'm trying to sort out some questions about taxes.

I've lived in florida for a few years but I'm Canadian and will return to live in NS in July. I bought and registered a vehicle here in florida and paid state tax on it when i registered it. I understand I'll have to pay GST at the border on the price minus $10,000.

My question is: Do I have to pay PST in NS when I register my vehicle that was previously registered in the state of Florida? I would not have to pay PST if the car had been registered in another province.

I'm having a hard time finding the answer to this question.

Thanks for any help

forschende

Your Forum is great and very informative. I am ready to purchase a new car and was wondering about the verhicle sales tax. If the car sales price is $15,780 plus $620 Destination/Delivery charge = $16,400, would the sales tax be calculated on the $15,780 or the total of $16,400?

I hear that sales tax is only on an item and not on something, e.g. delivery charge.

Any help in solving this question I appreciate greatly.

Friendly regards, Chris

joel0622

Delivery charges are part of the price so yes you will pay taxes on the total price.

bulgurc

I have a question. If I am an MA resident, I go over the border to NH and buy a car and then saell the car without bringing back to MA? Is this possible? Will I have to pay sales tax?

A different variety of the same question is, if I buy a car in NH and export it. Do I have to pay states (MA) sales tax?

joel0622

You will have to pay taxes before you can resell it unless you have a wholesalers license.

What you are trying to do is called a "Skipped Title", skipping one of the owners in order to avoid paying sales tax.

In order to sell the car you will have to have the title in your name, in order to get the title you have to pay tax.

duval67

I'm an European and want to buy new car in USA and export it to Europe. Can I cut off the sales tax like AT in Europe?

volvomax

No. Not unless you have a dealer license.
Plus, most car makers prohibit their US dealers from selling cars for export.

ice6

our son is in the army, stationed in Germany. He is coming to the states to a new duty station, he bought a new car through the overseas dealership. Its being made here and delivered ti Illinois where we live he will drive it to Colorado. Does he have to pay Illinois sales tax when he picks up the car, he will have to have license plates before he leaves for Colorado. He has been told no, he doesn't have to and yes he does have to pay. Please let us know quickly , thank you so much

qbrozen

he pays tax wherever he will live. So I guess Colorado tax, in this case. The plates will simply be a temporary tag. When he registers the car in Colorado, he will get the real plates and pay tax at that time to the DMV.

joel0622

Did he buy it through the Exchange New Car Sales program? if so they should be able to tell him.

Here is there web site, maybe you can contact them and they can tell you for sure.

ENCS

alaurent

I just bought an Audi 2004 A4 3.0 in Florida from a resaler in Clearwater. I already received the TITLE but I never paid any sales tax.
The used car dealer told us at the signing, that we were not suppose to pay any taxes because we were registering the car in Quebec and we were not using it in Florida at all. Is that true or false? Should I pay the sales tax here in Florida or at the border ? This resaller is suppose to give me a tag good for 30 day when I'm ready to go home in Quebec.

Kirstie_H

Hi,
This is a better question for our Importing a Car to Canada from the US discussion - you can just click on my link and ask there.

cardude88

I live in Washington state and I'm going to be getting a new (for me) car pretty soon and am trying to decide between buying a car that's 4-6 years old or leasing a new one since I've seen alot of attractive lease deals recently, but my question is if I lease a new car when I go to license it am I going to be paying sales tax or on it? Any insight you could give me on this would be really helpful. Thank you

kyfdx

You should check with your local DMV, but I think if you lease, Washington charges tax on the monthly payment. (9.2%?)

But, you wont have to pay that when you register it. The bank you are leasing it from will collect it with your monthly payment and remit it to the taxing authority.

regards,
kyfdx
visiting host

warhub

Help! The car I want to lease is in North Carolina, but I live in New York State. I usually buy cars in the state where I live and simply roll the sales tax into the payment but the dealer in NC isn't sure he can do that because I live in NY. If he leaves the sales tax out of the payment, how would I go about paying the tax to New York? Also, should I be paying sales tax on the entire price of the car or just the part I leased (the non-residual part)?