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Out-of-state taxes

Discussion in 'Dealers & Pricing' started by Dondoh, Mar 11, 2009.

  1. Dondoh

    Dondoh Aleatory Specialist

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    First, thanks for all the thoughtful and informative posts here. I have learned a lot.

    My question.
    It seems that there are varying deals around the country, and I would have no problem buying in another state if the price is right. In fact I would love a nice long drive home in a new car!

    But I am concerned about the sales tax implications. I assume that I will have to pay my own state sales taxes when I register the car, but if I buy in another state, do I have to pay those sales taxes as well?
    So, I suppose this boils down to, if you buy in another state are you paying both sales taxes?

    Again, thanks for this site and its posters.
     
  2. JSH

    JSH Senior Member

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    I have purchases a new truck in Virginia when I lived in Michigan, a used motorcycle in Massachusetts when I lived in Michigan, and a new motorcycle in Georgia when I lived in Tennessee. In all cases I paid no sales tax in the state I purchased the vehicle but instead paid sales tax in the state I registered the vehicle.

    It might not be the same in all states so I would ask the dealer you a thinking of purchasing from how that state deals with out-of-state buyers.
     
  3. Proco

    Proco Senior Member

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    Checking with the dealer is a good idea. While living in NJ, I bought a car in PA. PA charged me the sales tax and then refunded it to me. I then had to pay it to NJ after the fact.
     
  4. stevemcelroy

    stevemcelroy Active Member

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    I bought my new 09 in Rhode Island and registered it in PA. I was working up there while living in Philly so it was the easiest way to do it. The dealer registered it for me in PA - they used a service that charged about $50 to do it. I paid PA sales tax, not RI - typically you will pay sales tax in the state where you register the car initially, not where you buy it.


     
  5. donee

    donee New Member

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    Hi Dondoh, from donee,

    I bought my car in Wisconsin. Wisconsin does not require automotive state sales tax from out of state buyers. When I registered my car in Illinois, I payed the Illinois state automotive sales tax. If I remember right, Illinois required you to pay the difference between the Illinois rate (about 10 %) and the state you bought the car in, if the state you bought the car in was less. The Illinois registration and tax payment were due within 30 days of driving the car into Illinois.

    So, I guess it depends on the specific state you buy in, and your own state's requirements.
     
  6. stellaf

    stellaf New Member

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    It is such a useful article and I found a lot of information with the help of this article. Thank you so much for sharing.


    Stella