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Question about out of state car purchase

burnswellburnswell Posts: 3
edited May 2016 in General
Hello all, new here to this forum and hoping to get some answers from folks who know about car buying and titling. Earlier this month I purchased a used 2013 Scion FRS from a dealership in Oklahoma. I currently reside in Texas and I'm having a difficult time registering and titling this car. After multiple visits to the tax office I discovered sales tax is not normally included at the time of purchase vehicles in Oklahoma as they are in Texas. I was told before I could title and register the vehicle I would have to pay Texas sales tax. This amounts to around $1,300 about double the sales tax listed for Oklahoma vehicle purchases. Am I required to pay Texas state sales tax or is it possible to title the vehicle in Oklahoma and pay the 3.25% Oklahoma rate, then just transfer the title here in Texas? With that method will I be required to show Oklahoma state residency? Any suggestions are much appreciated!
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Best Answer

  • Mr_ShiftrightMr_Shiftright Sonoma, CaliforniaPosts: 64,490
    Accepted Answer
    Yes, you are required to pay Texas sales tax. Most states have "reciprocity agreements" regarding sales tax on cars and you pay the tax of your state of residence, or the difference between tax in the two states (had OK collected their share, which they should have BTW).

    I suppose you could register the car in OK but you'll have to come up with a valid address of residence (not a P.O. Box) that will be able to receive your OK title and registration and license plates. Naturally OK is already on to people doing this sort of thing so I'm sure they won't make it easy for you. Then you'll need proof of insurance, and what address will you use for that?

    I'm not sure the $650 or so difference is going to be worth all this hassle.

Answers

  • burnswellburnswell Posts: 3
    Thank you for the response! Guess I'll bite the bullet and pay TX taxes. Bummer the dealership didn't charge any tax or bother to tell me I would be responsible for paying it later...lesson learned. Thanks again. 
  • Mr_ShiftrightMr_Shiftright Sonoma, CaliforniaPosts: 64,490
    I'm surprised they even let you drive it out of the state--often, if you don't pay the tax, you have to trailer it out of state.
  • burnswellburnswell Posts: 3
    They actually did trailer it down to Dallas and met me half way.
  • steverstever Posts: 52,462
    That's probably why they didn't collect Oklahoma taxes. I've heard of California dealers doing that for Nevada or Arizona buyers.
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