Vehicle Sales Tax Questions

mz43026

hey Stell, did anyone reply back to your question. I also wanted to know the answer to your question. Can you let me know? thanks.

mz43026

Does anyone know if we have to pay sale tax for a new vehical purchased for export?

fltcrew21

I would like to buy a used car in Indiana and title it here in Georgia where I live. If I tell the dealership in Indiana I am licensing it out of state will they not charge sales tax? And when I register the vehicle here in Atlanta, will they charge me tax if it wasn't already collected at the dealership?

Thanks!

andy2812

Does anyone know the exact way to calculate the NY sales tax when I am including the tax in the lease payment. I know how to calculate a lease payment when the tax is not included, but I'm not sure when how it is done when you include the tax. I just leased a car and in the lease note, the tax seems to be higher than it should be based on what the payment is. Thanks for any help

camrypop

yes i have a similar question. Looking to buy out of state. Do I still have to pay title/license/registration fees at the time of purchase or do i wait until i get back in-state?

And concerning state tax, do I pay the diff when i get back home or do i pay all of it in my home state and nothing at time of purchase(in the pther state)?

Thanks.

alfox

Depends entirely on the two states involved, since laws vary wildly from one to another. Best bet is a phone call to your local DMV.

camrypop

thanks a lot alfox. will do.

spm2

My son is selling his car to his sister (New Jersey). If he gifts it to her will she need to pay sales tax? Can he sell it for a nominal fee to lessen sales tax? What are the sales tax requirements for a title transfer among family members?

andreizm

I own my current car and would like to upgrade to another one. I have two options: sell it privately and apply the money towards the new car, or trade-it in when purchasing the new one. What are the sales tax implications for both cases? In the private sale, it seems I will end up paying the sales tax on the full amount of the new car. In the trade-in case, am I going to be taxes only on the difference between the price of the new car and the trade-in? Are my assumptions correct? I am in California, by the way.

-Andrei

anonymousposts

Indiana should not charge you sales tax in their state. You pay the taxes in your state of residence not where you purchase the vehicle. Your local tag office will not collect the sales tax from you when you register the car in Georgia. However, the State of Georgia will bill you for uncollected sales tax.

Additionally, should the Indiana dealer require you to pay tax at the time of sale then Georgia will give you a credit for what you have already paid in Indiana.

bdkinnh

You pay the taxes in your state of residence not where you purchase the vehicle

That's not always true if you want to follow the letter of the law.

I live in New Hampshire. If I buy a car in Massachusetts, according to the Mass. Department of Revenue I would have to pay the 5% sales tax (I called them to find out). It would be the same as if I bought a TV or washing machine.

If you ask the dealer, they say that you don't have to pay it - you only pay tax where you title the car. In reality, you pay the tax where you purchase the vehicle, so the dealer is willing to list it as a delivered car. In other words, if they deliver it to you in NH then the transaction takes place in NH therefore no tax is owed.

If I bought a car in MA, I would go to the dealer to pick it up and they would (* wink *) write it up as a delivered car even though we were doing the transaction in Massachusetts.

nike4

Hey, I was wondering the same thing. Did you ever find out if there was a sales tax on new vehicles being exported. I know that you dont pay sales tax in california if you purchase a car there and want to take it to say arizona, if you have them drop it off at the border for you or whatever you can pay your tax there.

cadillacmike

You better hope that the Mass depr or revenue isn't reading this board. :P

You are right though, states with sales tax that border on states that don't have a sales tax (like MA-NH cited here) have dreamed up whole chapters of tax laws to get your money. :mad:

anonymousposts

want to pay taxes in the state you are buying the car in and the dealer wants to charge you the tax you can fill out an affidavit showing you took delivery in your state. We have a similar form here in Georgia for delivery in different counties. Until recently the dealership had to charge taxes based on the county the dealership is located in. This posed a problem to some dealerships in a county with 7% tax bordering a county with 5% tax. So the dealers had the customers sign an out of county affidavit that shows they took delivery in the other county allowing the dealership to lower the sales tax charged to the customer.

bdkinnh

You better hope that the Mass depr or revenue isn't reading this board.

They can read all they want - I'm moving back to NH in two weeks.

tigger10678

Does anyone know how the sales tax works if you buy a car in PA but are going to register it in NJ?

Kirstie_H

Generally, you pay tax where you register your vehicle. You will pay the tax when you register it in New Jersey. Just in case, you should be prepared to bring proof of NJ residence when you go to buy the car in PA, and make sure they don't inadvertently charge you PA sales tax.

jane0218

I'm being led to believe that if I purchase a new car in Arizona (where I live) and provide a trade in, I will be charged sales tax based upon the new car price less the trade in value. Is this true? If so, where can I go (internet-wise) to get something official to print out and bring to the dealership?
I am concerned they'll try to charge me sales tax for the full price of the new car, and I would like to have something to show them otherwise if this occurs.
Thanks.

fikir

My sister(las vegas) is giving her car to me(Georgia). If she gifts it to me will she need to pay sales tax? Can she sell it for a nominal fee to lessen sales tax? What are the sales tax requirements for a title transfer among family members?

john500

It is true in Louisiana and New Jersey, the two places that I have purchased cars. Identify through research what you want for your trade-in price and what you expect to pay for the new car and then you pay tax on the differential.
For example
New car = $20,000
trade in = $10,000
Louisiana tax = 9 %

Total price = 10,000 + 10,000(.09) = $10,900 + registration cost ($160 in LA).

I don't think you need that portion in writing. Worry about the dealer trying to stick you on the trade in value or the new car price. Keep your eye on the difference.

john500

See post 215
Option 1. Selling it privately and the buyer pays the sales tax and you get no tax credit.
Option 2. Apply the car as a tradein and you get sales tax credit

Example
New car $20,000
trade $,10,000
sales tax = 9 %

When trading it in,
price = ($20,000 - $10,000) * 1.09 + registration costs = $10,900 + reg costs

When selling privately,
the new car price = $20,000(1.09) = $21,800 + reg costs

Therefore, you must get AT LEAST $10,900 for your car or else you lose money buy selling privately. If you have a desirable vehicle and you don't live in a neighborhood of hooligans that want to test drive but can't afford it, you can usually get $1500 more than tradein value and benefit by selling privately.

nathar

I'm in the process of buying a car in Massachusetts, and I agreed on a price of $10,000 (just to pick a round number) after a $1,000 manufacturers rebate.

On my purchase and sale agreement, it says vehicle price $11,000 and a calculated sales tax of $500.

Then, towards the end, there is some line for "amount financed" and it says "-$50", so that my final balance is $10,550 not $10,500. That seems rather fishy to me. I'm pretty sure that the last time I bought a car in Mass that I did not pay tax on the rebate. Here, not only am I paying tax, but the paperwork makes it look I am not paying the tax.

kyfdx

Generally, the car is taxed, then the rebate is deducted...

Think of it as a mail-in rebate.. like on a computer.... You pay for the computer + tax on the whole amount... then you get the rebate in the mail later....

Not just MA.. everywhere..

ifyoubuildit

what is the "-$50" attributed to? I've never seen that before... :confuse:

cadillacmike

Um......

5% of 11,000.00 is 550.00

choka420

I am a New Hampshire resident who is purchasing a car from massachussetts and i want to know how much of a tax might i expect and when, who will i pay this tax to?will i pay before i leave the massachussetts border?

kyfdx

No sales tax in NH, right?

I don't think you'll have to pay any sales tax to MA...

greggwsmith

We are being relocated from Dallas to NY. Both my Jeep and my Wife's minivan are leases. What horrors and expenses will we face moving to New York?

bandemommy

You won't pay anything in MA, but watch out for the "Registration Fees" in NH, almost as bad as MA tax.

bdkinnh

Here's the text from my post #217:

I live in New Hampshire. If I buy a car in Massachusetts, according to the Mass. Department of Revenue I would have to pay the 5% sales tax (I called them to find out). It would be the same as if I bought a TV or washing machine.

If you ask the dealer, they say that you don't have to pay it - you only pay tax where you title the car. In reality, you pay the tax where you purchase the vehicle, so the dealer is willing to list it as a delivered car. In other words, if they deliver it to you in NH then the transaction takes place in NH therefore no tax is owed.

If I bought a car in MA, I would go to the dealer to pick it up and they would (* wink *) write it up as a delivered car even though we were doing the transaction in Massachusetts.

kyfdx

That makes sense... Otherwise, they'd never be able to sell a car to someone from NH...

amychowus

I am a NJ resident. I just sign a contract with Central city toyota in pa. They are charging me 6% tax. They siad they can register the car for me with NJ DMV, I am using my old NJ tag. It this legit? PLease let me know ASAP, I will have to close the deal with them in the next couple days. Thanks.

cellaries

If a car is purchased using a corporation or llc, is the sales tax charged based on the home state of the corporation?

sutekh

Does the Trade-tax-credit apply to leases done in the state of New York?

johnst

Does my son have to pay Ca sales tax on used car I gave him from out of state?

bdkinnh

Unless you've already given him $11,000 this year - no. The tax free gift limit is $11,000, so this would fall under it. If you give him other things, they would all count toward the $11K limit.

I don't know what paperwork he has to show CA when he registers the car, but you may want to type up a letter saying that you are giving him the car free & clear. Also include the VIN number, just to be sure.

Actually, now that I think about it a little more, I think the $11K limit is federal, not state. But, I still doubt that he would owe CA sales tax since there was no sale.

kyfdx

You are referring to the gift tax limit... That has no bearing on whether you pay state sales tax on a transfer.. Each state has it's own rules...

For instance, in my state, siblings can't transfer cars tax free... However, parents or offspring can... When my aunt wanted to give her sister (my mother) a car.. she had to transfer it to their mother, who then transferred it back to the sister.. This was the only way to avoid sales tax...

Probably, the easiest way to avoid it, would be for the father to register the car in California, as though he had moved there.. then, he could most likely transfer it to the son, tax-free...

But, I'm not intimately familiar with California car sales tax rules.. I would have the son go down to the DMV and talk to someone face-to-face...

regards,
kyfdx

93fzr

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 if I would be stuck paying NY sales tax if I purchased a used car from NY, currently titled and tagged in NY, and brought it back to NC, or would I just pay the NC 3% use tax when I go to register the car in NC? Would I be stuck paying NY and NC both? As you can imagine, this plays a major role in the decision to buy this car.

Thanks in Advance,

JC

ronsteve

I don't know how the tax would work in NY, but if you say it's currently titled and plated there I'm assuming it's a private sale. I wouldn't imagine you having to pay NY tax if YOU didn't title or plate the car up there. If it's a dealer, you might have to jump through some hoops to not pay NY tax.

In NC, if you're doing the title and plates on a car you just bought, it's 3% of the book value of the car (in a private sale) or the documented transaction price (if it's a dealer). If you're transferring a title (already in your name) from another state, you still pay the 3% but it's capped at $150.

taxesugh

I bought a car from a dealer in Indiana but it was repo'd before I ever got it registered. I also never payed sales tax at the dealership or anywhere else. He let me drive it off the lot on a promise. I had good intentions but it didn't work out. What am I liable for? Thanks.

dukehoops

Hi,

I'd like to sell my 2001 acura cl-s and get a new tl while the 2005 ML is still available. Trying to determine whether I should trade-in (more convenient, less money), or sell to private party (more money, easier to negotiate new car price). From an edmunds.com article about trade-ins:

"Work the tax advantage. In most states, you only pay sales tax on the difference between the new car and the trade-in. This means that, on top of what you receive for your trade-in, you are paying less sales tax. This is a net savings for you and could make you decide that trading in is worth it."

Does anyone know whether this is true in CA? If so, sounds like i could close trade-in/sell yourself gap by about $1k, based on 8.25% sales tax rate.

thanks
-nikita

cartax

In Washington State all purchase vehicle has sales tax that are based on fair market value. What does this mean? Why is the sales tax for vehicle not based on the sale price like it is when you buy other goods and services? Remember the old saying, what you pay is what your tax for. Is this approach from the state legal to charge extra for something we never received. I understand the new car tab is only $30 therefore I believe the state is going after sales tax to recover the lost revenue. But is it ethical, and legal? What is the purpose of captialism? To find and purchase that product below the asking price (blue book value).

kyfdx

It is not just WA state, KY is the same way....

The reason they do it? Because, people lie...

Don't see anything unethical about it.... it is applied fairly across the board.. If you are buying a car that is selling way below fair market value for some reason, you can likely sign an affidavit and get an appraisal and have the value lowered.

It is definitely legal..

regards,
kyfdx

tigger10678

The sales tax in New Jersey is 6% of the purchase price of the vehicle. I've gone and secured my own financing for my vehicle purchase and I want the dealer to take care of the title and registering. I have a blank check to shop with from the financing company and I am able to include all fees and taxes associated with the purchase of a new vehicle. I think sales tax has to be paid upfront in New Jersey. If I fill out the blank check payable to the dealer for the total amount including TT&L fees, does the dealer go ahead and pay the taxes to the DMV when they receive the payment in full from the financing company? In the loan documents from the finance company it states that they pay the dealer 1 business day after the dealer processes the check for payment. :confuse:

crjdriver

I'm pretty confused here.. I want to buy a car in TN at a carlot. The seller told me since I lived in Georgia, he would not charge me sales tax, just give me a bill of sale, and the title. Now when I bring it back to Georgia, will Geogia charge me the sales tax? If so, how do they know if it's a private party (not required to pay sales tax), or if it were a dealership or a local carlot? And how would they know the price? I bought a car in Dallas off of Ebay a few years back. It was not a pirvate party, but some high-end used car place. They gave me the title, and I registered it in GA when I got back. I was never billed for any Sales Tax, and that was 3 years ago! How does this work??

Thanks

nortsr1

If you live in NJ and are buying in NJ...YES, the dealer collects the sales tax...it will included in your sales form.

anonymousposts

The TN dealer is correct. They can not charge you sales tax on the vehicle. When you register it in Georgia they will more than likely ask you for a copy of the bill of sale. They will forward the information to the State of Georgia and they should then bill you for the unpaid sales tax. This is the way it *should* happen. We all know that this isn't always the case but it is the law.

jccampbell77

I currently live in California, but still have my Texas drivers licence (I moved to CA a few months ago). I'm about to move back to Texas in a few months, but need to buy a used car before the move. Should I buy it in CA or try to find something in Texas? I'm just trying to find the smartest, least expensive way to handle this process. Don't want to pay taxes twice or registration twice if I can avoid it. I would appreciate any help. Thanks - JCC

anonymousposts

if you can wait until you get back to Texas then you should wait.

jccampbell77

Can you be more specific why I should wait?