I just bought a new truck in OK and then realized that they don't charge sales tax on new cars when you buy them. We currently live in TX but are moving to TN the end of May. My question is where do I have to register my car and is the sales tax computed on the difference between the sales price and the trade-in? I don't want to have to register twice in a month if I can avoid it.
Hi, I've been skimming this forum after after a frustrating trip to the DMV.
I paid sales tax up front (8.25%) on my leased vehicle in NY state. I just moved to Vermont, and was told at the DMV when I went to register the vehicle that because the NY sales tax is not a monthly payment I will have to pay taxes (6%) in Vermont upon registering the vehicle.
This seems so wrong. Does anyone have any suggestions as to whom I should call to lodge a complaint?
We are seeing more and more of this... People move from a state that charges the tax upfront to a state that taxes the monthly payment...
The short answer: You can't do anything about it.. Who to complain to? Your local state representative? I doubt it will do you much good, though...
Sorry for the bad news.. At least, NY only charged you tax on the depreciation, instead of the whole car.. If you had been in Illinois, you would have paid tax on the entire selling price of the car, then still would have owed tax on the payment in Vermont..
I am buying 2 cars in 2 weeks. 1 is in NM. The other is in AZ. I currently live in AZ, but we are in the process of moving to OR in 48 days. I don't have an address there yet. The dealer owns both dealerships a( AZ-NM). Can they do some kind of tempory tags till I have residency in OR? AZ license plates fee is outrageous! Would I have to pay taxes regardless of an OR address if I get one soon enough. What about a post office box in OR? Need help, could be lots of money to save here.
Has any New York resident recently purchased a new car in New Jersey or Pennsylvania? If so, can you explain to me how it works in terms of sales tax and registration? For example, if I buy from a dealership in New York, I never need to set foot in the DMV -- I pay the taxes and registration fees at the dealership and they give me plates and everything. If I buy in New Jersey or Pennsylvania, are they equipped to provide New York tags, or am I going to have to go through a whole process of going down to the DMV to register the car, trade in the temporary plates, pay sales taxes, etc.?
Can't speak for New Jersey, but I can tell you that if you buy in PA you will be issued a temporary in transit plate which is valid for 30 days. The dealership will give you the MSO and a MV-120 as temporary registration. You will have to go to the DMV to pay taxes in New York and have your permanent plate issued. It can be a lot of aggravation, so make sure you are saving enough money on the deal to make it worth your while.
Interesting. Sounds like I would lose about two days of my life to the process: call it two half-days to go to the dealership out of town, and a day to deal with DMV crap. It's hard to put a cash value on that, but I'd say maybe a $500 savings would be my break-even point.
Is the drill the same for buying a used car from a dealer out of state? And what about from a private seller out of state? A private seller, I take it, can't give you an MSO or an MV-120, so what do you do about that? Is there a FAQ somewhere that lays out the steps?
It would be the same for a used car except you would get a title instead of an MSO. The paperwork would have to be done at a messenger service or notary, so they would give you the paperwork.
A po box might work for you, but you will have to title the vehicles in Oregon. You will have to have proof of insurance in Oregon. Temporary in transit plates are usually only good for thirty days, so watch how soon you buy.
Hi all. An update for you (I posted #155 above) in the hopes that it might help someone else in a similar situation.
Yesterday, I drove 40 minutes to the state capitol in order to try to register the car. I'd been spending a lot of time on the phone with DMV customer service reps, all of whom were based out of Montpelier. They had been telling me that the proof of tax paid I had already presented should have been adequate. They suggested making a trip out there.
I did, and it worked. The employees at that branch were much more lenient, and accepted the sales tax payment based on the same documents that had previously been rejected by the employees of my local branch.
I'm extremely pleased, but remain frustrated with the overall experience. Discrepencies between state sales tax policies should not be passed off as a financial responsibility onto individuals.
Do you really believe that? The states will get their money from taxes. When you buy a used car from a private seller title work still needs to be done. Part of that title work will be collecting sales tax. You should think a little longer before giving out bad advice.
It all depends.... In some states, private sales aren't taxed (GA, I think), but they are in the distinct minority... I'd venture a guess that private sales of used cars are probably taxed in at least 40-45 of the 50 states...
So, that probably is bad advice for the great majority of readers..
The motor home cost $750,000 at the point of sale in a state that doesn't charge a sales tax. The buyer lives in a sales tax state. If he were to license it, he would pay $66,000. He parks it in a non sales tax state and when he wants to drive it, he buys a Temporary Permit for $15 & goes his merry way. He bought a stack of permits and fills them out as needed.
I have looked all over this forum and could not find a clear answer. Here is the question: If I buy a car in Cook County IL that has a sales tax of 8.75% and I live in Lake County IL that has a sales tax of 6.5%, what rate applies?
....... **The motor home cost $750,000 at the point of sale in a state that doesn't charge a sales tax. The buyer lives in a sales tax state. If he were to license it, he would pay $66,000. He parks it in a non sales tax state and when he wants to drive it, he buys a Temporary Permit for $15 & goes his merry way. He bought a stack of permits and fills them out as needed.** ...
One minor little drawback .. if there is an accident or a theft, the insurance company basis is on the home address ... then the state finds out from the plates, then you get the 10% tax penalty and a 15% "how ya doing" charge .... we get people down here all the time from NY, Utah, GA, etc etc and keep their Big Dogs at the "Outdoor Resorts" and usually 2/3 years later there sitting someplace "For Sale" because they didn't pay the tax and they now have come up with big $$$ ----------------- Smart.! ....l.o.l......
I need some advice. I dont know how this works. I need to know how to save the most money. I currently live in AZ and im moving to CA in 2 months. I want to buy a car but I dont know if I should buy it in AZ or in CA. CA has higher taxes but I dont want to get screwed over and pay taxes or registration in both states. What is my best bet to save the most money?
Understand your post, however, there are never any plates. Just Temporary Permits, one after another.
Crash? The Financial Responsibility Division of the state in which the crash occurs only wants to know if there is insurance or not. The FRD does not talk to the Revenue Dept because the FRD doesn't know which of the 50 states to talk to.
He has title, insurance, and a stack of Temp Permits. Yes it is a loophole, but he asks, "Why should I be financially penalized for being financially successful?" "The Power to tax is the power to destroy." (With his toad, nobody notices the lack of a plate.) The guy didn't amass wealth by being usual and normal.
First of all, it is perfectly legal to have a plethora of Temporary Permits @ $15 each to use at his discretion when and where he choses. They are not purchased at a dealership, but at the county auditor in the state in which he is licensed to drive. His system is legal and there are no laws being violated as long as he has the TP during the time he is driving the MH.
There is no justification for paying any government $66,000 because you can buy a $750,000 Country Coach. The egregious idea that those who make it should pay it is socialistic if not communistic and thwarts entrepreneurism.
If you think that is legal, you are dreaming.. Temporary permits are granted to drive on temporarily, until you obtain permanent registration.. Every state has laws that dictate how much time you have to do that...
And paying sales tax is not optional.. Collecting it at registration is an enforcement tool.. Whether you register your vehicle or not, the sales tax is still due, and you are breaking the law by not paying it.
If you don't think so, maybe you could check up on Dennis Koslowski.. He seems to be in a spot of trouble for trying to evade sales taxes on artwork..
Your friend is breaking the law, pure and simple..
"Temporary permits are granted to drive on temporarily, until you obtain permanent registration."
That is the common understanding, however, it is legal to have a series of T.P. and the law doesn't say when you have to register the vehicle if ever when parked out of state.
The S.T. is not due until he decides to register the MH in his home state.
"Artwork" example is Oranges and we are discussing Apples. Irrelevant.
Care to cite the law that is being broken? Remember the $750,000 coach is parked in a non sales tax state so it doesn't reside where the owner rests his head.
The state's Temporary Permit rules and regs allow him to avoid the tax, so it's legal.
I just came into this thread and must say it's very interesting legal question. I am not a lawyer, but have a legal background.
Ultimately, there are several question that must be answered: 1) Q. "Is the owner of the MH REQUIRED to title where he rests his head ( state of residence )". A. I would say the answer to this would be no. What if the owner is an offshore corporation? I'm sure your wealthy friend could do that, and simply get a title issued from say " The Caymen Islands". But how does that help him get plates in the state(s) he wants to drive the MH?
2) Q. If a vehicle is legally titled outside of a state, but the owner operates it > 50% within the state, are PERMANENT state plates required? Don't know. I would say yes. But what if it is operated between equally 2 states? 3 states? etc.
3). To obtain permanent state plates, is a state title required? I know in Illinois this is not required, but you STILL have to pay a Use tax to get permanent registration & plates, even if you have a valid title from another state.
I'd bet my bottom dollar that there IS something in the very fine print of the Temporary Plate rules saying that you cannot have more than 1 TP per vehicle per given time period. Could you imagine the mess if everyone did this? Instead of paying thousands of dollars in sales tax, just put on a new $15 plate every month? Everyone would have temporary plates.
You pay tax rate where you live, not where you buy. I live in Lake County too and purchased a car in Wisconsin. I hated having to cough up $400 in Use Tax to get title and plates but it had to be done. Illinois DMV also required the bill of sale from the dealer to calculate use tax. I guess some of us taxpayers have lied in the past on telling the real purchase price..:)
The unit has yet to be issued any state title. He has a Certificate of Origin and Bill of Sale. He buys the Temporary Permits from the state in which he is licensed to drive which satisfies the Financial Responsibility Law, with insurance of course.
He drives the MH where he wants with just the Temporary Permit and has no permanent registration or plates. He keeps a stack of pre purchased permits in the motor home and fills them in as needed.
Most folk don't do this because a lien holder wants to hold the title and you don't get a title until you pay the sales or use tax.
..... ** He keeps a stack of pre purchased permits in the motor home and fills them in as needed** ..
The bottom line to this is .. he's evading taxes, period.
All states have a time limit on their "temporary" plates .. 20 days, maybe 30 days, it all depends on the state .. and sometimes because of a title problem or a lender situation they can get another 20/30 day "temp" tag extension ..
Somehow, someway he's receiving these temp tags (illegally) and if you read the small print he has "X" amount of days to complete the transaction .. in the meantime, these are signed and/or stamped by a dealer or a state rep .. so he's lying to somebody, plus he has the MSO and that shows the original date and their going to ask for the original sales order and that will show the corresponding tax address ...
That said, he now has a paper trail on everyone of these tags and the temporary *registration* that goes with, because they are all computer generated and listed by "reason", area, dealer, customer, purpose and time sequence ...... hmm, sounds like a tax and forgery case ....
I wouldn't want to be in his shoes, depending on the state, he will receive a 10% tax penalty and whatever else goes with ... enjoy the ride ~ because it's going to be a short and a very expensive one ..l.o.l....
There is no avoidance of paying taxes until he registers it in the state. Registering and applying for a title triggers the payment of sales tax. Not the out of state purchase of the MH.
Each TP has a time limit, however, that doesn't preclude a sequence of TP's in chronological order as he chooses to execute them when he wants to.
There is no lying involved. When he purchases a TP, it is blank and no numbers are recorded at the county Auditor's office. In his state, you can purchase as many as you want at one time, no questions asked because many fleet operators don't know which tractor or trailer will be used in the future.
Forgery isn't involved, but he is intelligent enough to know how to use the system to his advantage without any type of risk.
As to your last threat paragraph Terry, he's been doing this for over three years and it is legal in that state. He just doesn't finance the rig & there's no state title.
I'm a international student in Indiana (i.e. not a citizen, but my current residence is in IN), and graduated recently. I got a job in CA and would be moving in 1 month. I plan to buy a car, but am confused over where to buy it? CA sales tax is higher than IN. As previous posts mentioned, would the residence rule will apply to me as well (i.e. you pay tax where you live). Kindly advice.
I'm currently living in California but will be moving to Alaska this summer. I'm going to buy a new vehicle for use in Alaska, and the fact that Alaska has no sales tax makes buying there appealing. I'd save over $2,000 by buying there. But I've heard that AK dealerships rarely go much below sticker due to the lack of competition (there's only one dealership per make in my future town and nothing else nearby for hours), so I'm thinking I could save by buying in CA (I currently live in a major metro area with many dealers). Is there a way I could buy the car in CA but register it in Alaska right away so as not to pay CA tax? Thanks!
Some personal comments have been removed. This one will have to be decided by the state authorities, methinks!
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Hello! I am looking to lease a 2005 honda Pilot and I have my best offer from a dealership in Wisconsin. If I lease it in Wisconsin, where they tax on the monthly payment, will I just continue to make payments to the wisconsin dealer with the wisconsin tax on the mothly payment, or will I have to pay tax on the total value of the vehicle like if I leased it in Illinois? Or (gasp)BOTH??? Thanks in advance for any help:)
If you register the car in Illinois, you won't pay any tax in Wisconsin..
Once the dealer sells the car, they are out of it.. You don't make payments to a dealer... You'll make payments to the bank.. (AHFC, in this case).
Unfortunately for you, Illinois taxes the full price of the car on a lease.. Generally, that is added to the cap cost and is raises your payment by the corresponding amount..
If I add the Bank fee and the remaining lease payments into a new lease, do I have to pay tax on the total lease payment amount or just on the amount of the lease payment before adding in some or all of the additional items. The state is New York
For example, if a new lease payment was $400, but after adding in the Bank fee it brings the payment to $415 and after adding a remaining payment of $300 from a prior lease into a new lease it bring the total lease payent to $425, do I pay tax on the $400 monthly payment, the $415 monthly payment or the $425 monthly payment.
If New York taxes the lease payment, you'll pay tax on whatever amount that is...
In every state that I'm familiar with, the acquisition fee gets taxed, whether you pay it upfront or roll it in.. So, that really will have no effect either way..
If you only have one payment left from your old lease, it would be much easier to just pay it yourself, than roll it into the new deal... But, it looks like you'll pay tax either way on it...
Are you sure that NY taxes the entire cap cost? Did they recently change this? If this is true, is the bank fee and any previous lease payments that I add into the new lease payment considered part of the "entire" cap cost or are they excluded for tax purposes? The reason I question this is that I currently have 2 leases in my family and in both of them the tax was paid only the monthly payments, NOT the entire cap cost. For a $25,000 car, the tax was $1211 which is far less than the NY tax rate of approximately 8.5%.
I live in chicago and i am purchasing a used 02 vw gti in wisconsin for 14k from a private seller that is leasing it through VW credit. When i register this car what kind of taxes will i have to pay and what forms?
Quick question - I bought my car overseas three years ago while in the military from a military sales lot, thus not paying any sales tax. I´m about to move to Oregon and my car is being shipped there as I type. I assumed I´d have to pay sales tax once I got the car back into the states and claimed residency somewhere, but it appears from your previous couple of messages (early 90´s in the string of postings) that Oregon doesn´t have a car sales tax? If that´s not true, what can I expect to pay on a 2001 Audi TT in Oregon when I go to register it for the first time? Thanks for the help.
I HAVE A HONDA ACCORD THAT I LEASED ABOUT 3 YEARS AGO. AT THAT TIME I PAID THE TAXES UP FRONT FOR THE TERM OF THE LEASE. THESE TAXES WERE ONLY ON THE AMOUNT OF THE PAYMENTS THAT I MAKE TO HONDA CORPORATION. ARE YOU TELLING ME THAT THE TAX LAW IN NEW YORK HAS CHANGED AND WE HAVE TO NOW PAY TAXES ON THE FULL VALUE OF THE CAR AND NOT ON THE PORTION THAT IS DEPRECIATED IN THE TERM OF THE LEASE?
I think most jurisdictions only charge sales tax(es) on the differential when you buy a new car with a trade-in. I'm just wondering if you can reap the same benefit when you're leasing, not buying, the new vehicle?
The situation is I currently own my car, but I want to lease my next vehicle. I want to put zero down on the lease, so I won't use the value of my trade, or part of it, as a cap cost reduction. Sales tax here is only charged on the lease payments. So if I do a trade, would I simply not have to pay sales tax on my lease payments? Has that been done? The other potential wrinkle is that I'm estimating that the value of my trade will be more than the depreciation amount on the leased vehicle.
Just went through this, and here is my understanding. If you own the car, you get a tax advantage by only paying tax on the difference. However, if you lease the new car, you don't own it, the leasing company does, so there is no tax advantage. You will pay full taxes on the lease. Or, if you lease a car, and want to buy a new one, the only way it would help is if you bought the lease car from the leasing company, paid the taxes, then traded it in and only pay the tax on the difference. But that doesn't make much sense. The main factor is that you have to own both the old and new cars to get a tax break. If either the new or old car is owned by a leasing company, you pay full tax. Hope this helps...
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I paid sales tax up front (8.25%) on my leased vehicle in NY state. I just moved to Vermont, and was told at the DMV when I went to register the vehicle that because the NY sales tax is not a monthly payment I will have to pay taxes (6%) in Vermont upon registering the vehicle.
This seems so wrong. Does anyone have any suggestions as to whom I should call to lodge a complaint?
The short answer: You can't do anything about it.. Who to complain to? Your local state representative? I doubt it will do you much good, though...
Sorry for the bad news.. At least, NY only charged you tax on the depreciation, instead of the whole car.. If you had been in Illinois, you would have paid tax on the entire selling price of the car, then still would have owed tax on the payment in Vermont..
regards,
kyfdx
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Is the drill the same for buying a used car from a dealer out of state? And what about from a private seller out of state? A private seller, I take it, can't give you an MSO or an MV-120, so what do you do about that? Is there a FAQ somewhere that lays out the steps?
Yesterday, I drove 40 minutes to the state capitol in order to try to register the car. I'd been spending a lot of time on the phone with DMV customer service reps, all of whom were based out of Montpelier. They had been telling me that the proof of tax paid I had already presented should have been adequate. They suggested making a trip out there.
I did, and it worked. The employees at that branch were much more lenient, and accepted the sales tax payment based on the same documents that had previously been rejected by the employees of my local branch.
I'm extremely pleased, but remain frustrated with the overall experience. Discrepencies between state sales tax policies should not be passed off as a financial responsibility onto individuals.
So, that probably is bad advice for the great majority of readers..
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Thanks
One minor little drawback .. if there is an accident or a theft, the insurance company basis is on the home address ... then the state finds out from the plates, then you get the 10% tax penalty and a 15% "how ya doing" charge .... we get people down here all the time from NY, Utah, GA, etc etc and keep their Big Dogs at the "Outdoor Resorts" and usually 2/3 years later there sitting someplace "For Sale" because they didn't pay the tax and they now have come up with big $$$ ----------------- Smart.! ....l.o.l......
Terry.
Thanks!!
Crash? The Financial Responsibility Division of the state in which the crash occurs only wants to know if there is insurance or not. The FRD does not talk to the Revenue Dept because the FRD doesn't know which of the 50 states to talk to.
He has title, insurance, and a stack of Temp Permits. Yes it is a loophole, but he asks, "Why should I be financially penalized for being financially successful?"
"The Power to tax is the power to destroy." (With his toad, nobody notices the lack of a plate.) The guy didn't amass wealth by being usual and normal.
Loophole..?!? ..l.o.l.... it's illegal, and I'm sure when the "do-do" hits the fan, the dealer will say he stole them all ......
.... **"Why should I be financially penalized for being financially successful?"** ....
Financially successful people pay their taxes .. one way or another ...l.o.l......
Terry :P
There is no justification for paying any government $66,000 because you can buy a $750,000 Country Coach. The egregious idea that those who make it should pay it is socialistic if not communistic and thwarts entrepreneurism.
And paying sales tax is not optional.. Collecting it at registration is an enforcement tool.. Whether you register your vehicle or not, the sales tax is still due, and you are breaking the law by not paying it.
If you don't think so, maybe you could check up on Dennis Koslowski.. He seems to be in a spot of trouble for trying to evade sales taxes on artwork..
Your friend is breaking the law, pure and simple..
regards,
kyfdx
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That is the common understanding, however, it is legal to have a series of T.P. and the law doesn't say when you have to register the vehicle if ever when parked out of state.
The S.T. is not due until he decides to register the MH in his home state.
"Artwork" example is Oranges and we are discussing Apples. Irrelevant.
Care to cite the law that is being broken? Remember the $750,000 coach is parked in a non sales tax state so it doesn't reside where the owner rests his head.
The state's Temporary Permit rules and regs allow him to avoid the tax, so it's legal.
Ultimately, there are several question that must be answered:
1) Q. "Is the owner of the MH REQUIRED to title where he rests his head ( state of residence )". A. I would say the answer to this would be no. What if the owner is an offshore corporation? I'm sure your wealthy friend could do that, and simply get a title issued from say " The Caymen Islands". But how does that help him get plates in the state(s) he wants to drive the MH?
2) Q. If a vehicle is legally titled outside of a state, but the owner operates it > 50% within the state, are PERMANENT state plates required? Don't know. I would say yes. But what if it is operated between equally 2 states? 3 states? etc.
3). To obtain permanent state plates, is a state title required? I know in Illinois this is not required, but you STILL have to pay a Use tax to get permanent registration & plates, even if you have a valid title from another state.
I'd bet my bottom dollar that there IS something in the very fine print of the Temporary Plate rules saying that you cannot have more than 1 TP per vehicle per given time period. Could you imagine the mess if everyone did this? Instead of paying thousands of dollars in sales tax, just put on a new $15 plate every month? Everyone would have temporary plates.
He drives the MH where he wants with just the Temporary Permit and has no permanent registration or plates. He keeps a stack of pre purchased permits in the motor home and fills them in as needed.
Most folk don't do this because a lien holder wants to hold the title and you don't get a title until you pay the sales or use tax.
The bottom line to this is .. he's evading taxes, period.
All states have a time limit on their "temporary" plates .. 20 days, maybe 30 days, it all depends on the state .. and sometimes because of a title problem or a lender situation they can get another 20/30 day "temp" tag extension ..
Somehow, someway he's receiving these temp tags (illegally) and if you read the small print he has "X" amount of days to complete the transaction .. in the meantime, these are signed and/or stamped by a dealer or a state rep .. so he's lying to somebody, plus he has the MSO and that shows the original date and their going to ask for the original sales order and that will show the corresponding tax address ...
That said, he now has a paper trail on everyone of these tags and the temporary *registration* that goes with, because they are all computer generated and listed by "reason", area, dealer, customer, purpose and time sequence ...... hmm, sounds like a tax and forgery case ....
I wouldn't want to be in his shoes, depending on the state, he will receive a 10% tax penalty and whatever else goes with ... enjoy the ride ~ because it's going to be a short and a very expensive one ..l.o.l....
Terry.
Each TP has a time limit, however, that doesn't preclude a sequence of TP's in chronological order as he chooses to execute them when he wants to.
There is no lying involved. When he purchases a TP, it is blank and no numbers are recorded at the county Auditor's office. In his state, you can purchase as many as you want at one time, no questions asked because many fleet operators don't know which tractor or trailer will be used in the future.
Forgery isn't involved, but he is intelligent enough to know how to use the system to his advantage without any type of risk.
As to your last threat paragraph Terry, he's been doing this for over three years and it is legal in that state. He just doesn't finance the rig & there's no state title.
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Once the dealer sells the car, they are out of it.. You don't make payments to a dealer... You'll make payments to the bank.. (AHFC, in this case).
Unfortunately for you, Illinois taxes the full price of the car on a lease.. Generally, that is added to the cap cost and is raises your payment by the corresponding amount..
regards,
kyfdx
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For example, if a new lease payment was $400, but after adding in the Bank fee it brings the payment to $415 and after adding a remaining payment of $300 from a prior lease into a new lease it bring the total lease payent to $425, do I pay tax on the $400 monthly payment, the $415 monthly payment or the $425 monthly payment.
Thanks for any help
In every state that I'm familiar with, the acquisition fee gets taxed, whether you pay it upfront or roll it in.. So, that really will have no effect either way..
If you only have one payment left from your old lease, it would be much easier to just pay it yourself, than roll it into the new deal... But, it looks like you'll pay tax either way on it...
regards,
kyfdx
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The reason I question this is that I currently have 2 leases in my family and in both of them the tax was paid only the monthly payments, NOT the entire cap cost. For a $25,000 car, the tax was $1211 which is far less than the NY tax rate of approximately 8.5%.
I currently have GEICO, but am wondering if there are cheaper ones?
Thanks in advance.
When i register this car what kind of taxes will i have to pay and what forms?
Any advice would be helpful.
Quick question - I bought my car overseas three years ago while in the military from a military sales lot, thus not paying any sales tax. I´m about to move to Oregon and my car is being shipped there as I type. I assumed I´d have to pay sales tax once I got the car back into the states and claimed residency somewhere, but it appears from your previous couple of messages (early 90´s in the string of postings) that Oregon doesn´t have a car sales tax? If that´s not true, what can I expect to pay on a 2001 Audi TT in Oregon when I go to register it for the first time? Thanks for the help.
Clueless4
Thanks for serving in the military.
The situation is I currently own my car, but I want to lease my next vehicle. I want to put zero down on the lease, so I won't use the value of my trade, or part of it, as a cap cost reduction. Sales tax here is only charged on the lease payments. So if I do a trade, would I simply not have to pay sales tax on my lease payments? Has that been done? The other potential wrinkle is that I'm estimating that the value of my trade will be more than the depreciation amount on the leased vehicle.
Does anybody know if I have to pay a sales tax for a car purchased in USA (Ohio) to be exported overseas. Thank you. Stell.
Or, if you lease a car, and want to buy a new one, the only way it would help is if you bought the lease car from the leasing company, paid the taxes, then traded it in and only pay the tax on the difference. But that doesn't make much sense. The main factor is that you have to own both the old and new cars to get a tax break. If either the new or old car is owned by a leasing company, you pay full tax.
Hope this helps...