Interstate purchase - Buy in a different state than you live

speedball: if you got away with, then all power to you. but dont try to tell me what the law is in the state that i live in. For if you bought a car anywhere and brought it to WA, YOU WILL PAY WA state sales tax as soon as you register the car in the state. you have 15 days from the date you bring the car into the state to do so. it does not matter where your state of residency is when you bought the car. the only thing that matters is if you want to drive the car in this state.

 

DaveinOlyWA ....

This has become a hot issue for some ...

I didn't buy the car in Washington ... nor did I register it in Washington .... nor was the car in Washington for more than just a few days. The dealer in Alaska had it shipped to Seattle for my convenience, and at no cost to me. They actually believe in customer service .... how many other dealers selling Prius will give you this level of service. Similar to say .... driving your car into Washington state... cars crossing the border don't have to register and pay sales tax when they come to Washington unless you plan to register it there. My car already was paid for and had Alaska registration when it hit Washington state. The dealer in Seattle provided a simple service, a parking space until I came to collect it .... nothing more. No paperwork was done in Seattle .... didn't even have to sign for the car.... just told them who I was and was handed the keys..... just like valet service.


I'd like to make one last comment ..... some of the main issues discussed throughout the PriusChat.com fourm is how some dealers are charging over MSRP, giving bad service, or how long people are waiting to get a new Prius. I felt I was doing everyone a service by offering creative options that were never discussed on this fourm before .... for new buyers considering a purchase out of state .... I didn't need to tell anyone how I bought my Prius ... just thought this would be helpful information, in the spirt of this fourm .... advise them them there are other considerations to take into account ..... to get a car fast, and save a few dollars in the process if they found it necessary to go out of state to find one. I've been attacked by some on this fourm ..... on petty issues. Everyone can choose for themselves how they wish to handle their transaction ..... i.e., read the long post above about the AZ lady who paid a higher sales tax than she should've because she paid California Tax instead of Arizona tax (which would've been the correct tax) .... is this fair? Look at the hassle she went though. I was only responding to the original post asking about what it takes to buy an out of state car .... my deal went as smooth as can be with little effort .... and I saved a little money in the process ..... that's all ..... if this offends some .... that's your problem .... I'm sure most people on this fourm welcome this information.

Cheers,

 

it is like i said in my post,

if you can legally do it or get away with it all power to you.

but you cannot do what you describe in many states.

yes that does include internet purchases or any other purchase for that matter. cars are something you cant prove you bought in the state and therefore must pay sales tax on it. IN WA, if you go to OR for a day and buy a shirt, you must pay sales tax for that shirt when you get back to WA. obviously, the threat of discovery in such cases is nil, the possibility of prosecution even less.

but when we are talking $2,000 in taxes for a car, you betch yer nice person, the state will have something to say about it.

whast is the cost of shipping to the contigious US from AK?

 

Re: Interstate purchase - Buy in a different state than you

<div class='quotetop'>QUOTE(priusham\";p=\"44280)</div>

I'm curous what the "one way" pass says. When I moved from CA 25 years ago, my registration expired 1 week before I left. Rather than pay to register it, knowing I would be registering it in VT in a week, I paid the DMV for a "one way" or "transit" pass of some sort. It wasn't until I got to VT that I read the thing more carefully, it was only valid in CA! Could have saved the $$ since I wasn't legal for 90% of the trip. Hopefully you weren't in the same position.

CA does have bizarre tax laws. Many people buy boats in Mexico. The boats actually come from CA, are paid for in Mexico and 90 days later, brought back to CA. No sales tax. One hell of a loophole. In Priusham's case, he isn't a CA resident legally avoiding sales tax. But the boat thing, and I imagine it happens for other things like high end motor homes, seems like something that should be squashed.

 

the temp registrations are a scam set up by the states so they all get the money for your car.

that only boosts business for truckers who normally would transport the vehicles.

 

Re: Interstate purchase - Buy in a different state than you

<div class='quotetop'>QUOTE(Speedball\";p=\"45457)</div>

I find it interesting that AK will register a car without a local address. Wouldn't happen in VT.

Maybe not in CA but in VT they do. There is a line in on the income tax form for purchases on which no tax was paid. If you paid less tax than the VT rate, you owe the difference. As Dave said, they don't show up at your door, but they could.

I would be surprised if you don't owe a use tax of some sort. Especially when they see the purchase date.

Its all about getting money from some where VT reg is $50 for 1 year but sales tax is 6%. Since I transfered the plates from my old car, it was $15 for the title, $15 to transfer the plates + 6% tax as I had paid none in NH where I bought it.

 

My broker is getting the Prius I ordered through a dealer in Oregon. However, when we bring it up here, I'll be registering it in WA, and paying sales tax on it.

(Hell, I'll even pay the monorail tax since I live in the Seattle city limits, though I voted against it and think it's a poor idea.)

 

Dave your really off base! Of course you can PROVE you paid tax in another state, you just show your bill of sale when you move. That's why you should always save your papers when you buy a car. How can a minimal fee for temp. plates be considered a "scam". You can of couse do what is being discussed here, it seems in most state except Wa. and Calif. Don't know what's up with them? You seem to know the rules in your state but not the majoprity of other states. I'm not usually one to be critical of others but you should "cool your jets" a little.

 

in WA it doesnt matter if you paid sales tax in another state. when you register the car in WA you WILL PAY SALES TAX.

WA state has one of the highest sales tax rates in the nation and if you think you can skirt around the law by pulling some stunt as has been described above, im here to tell you that you WILL NOT get away with it here.

and Bookrats;

you are right the monorail is a ripoff.

when i think of how far you can drive in your Prius on the cost of ONE FOOT of that track, it just really destroys my faith in government.

its obvious to me that palms were greased and the monorail will mostly benefit the company building the thing.

heck, its already expected to not meet the transportation needs of the area by the time its done. IF its done on time which i doubt.

 

<div class='quotetop'>QUOTE(DaveinOlyWA\";p=\"45486)</div>

There was no cost to ship or p/u this car in Seattle ..... the dealer I bought this car from arranged this for me at my request.

Regarding sales tax ..... for all pratical purposes I in effect paid this in Alaska (even thought they have none). When transfering title to another state they aren't concerned about whether sales tax was actually paid in the other state, just that the car was registered elsewhere and in your name before you brought it to the new state ... I would think this would apply to all 50 states. I can't believe that Washington would in effect double tax you ..... what if you've owned a 1970 Chevrolet for the past 34 years ... then moved from say Iowa to Washington ... are you saying that you'd have to pay sales tax all over again on this car because you now live in Washington? I can't believe that. The age of the car makes no difference .... it's proof of prior ownership and registration in another state before it arrives in the new state that counts. Now ... if you bought a car in Iowa, but never registered it in your name before moving to Washington ... then sales tax would be charged when you registered it there. In my case, the car was bought, paid for and registered in Alaska with AK plates before I took delivery and then drove it to California ...... It's a completely legal transaction ...... people shop at Costco because they save money .... I bought my car in Alaska because I saved money...... it's that simple.

Here's another way to look at this .... how many people walk into a dealership and offer to pay asking price ... everyone attempts to bargain down the price ..... that's all that I did .... and I do feel any other new buyer could do the same ..... just need to ask the dealer what they can do for you ..... set up the purchase to your best advantage. Where and how you buy your new car can save you a lot of money.

 

Re: Interstate purchase - Buy in a different state than you

FYI - if buying in the Portland area and registering in WA, the dealers can do the WA registration for you (at least, Ron Tonkin can); you don't have to get temp plates and then go see the WA licensing people.

We'd've liked to find a way to dodge the WA sales tax, and thought we had a pretty good shot at doing so -- currently we have residences in both Portland and Seattle. But the amount of sales tax is way less than the amount of tuition we'd be paying for my wife's last quarter at UW if they decided she wasn't a resident anymore. We did find that we're still eligible for the OR income tax credit if we register the car in Oregon once my wife gets her PhD and we move down there permanently.

 

actually if you buy the car and state that the car will be immediately registered in another state then you do not have to pay sales tax.

hdrygas bought his car in Montana (could be Idaho too, dont remember now) and registered it in WA. im sure he did not pay Montana state sales tax.

 

<div class='quotetop'>QUOTE(Speedball\";p=\"45457)</div>

That is where you are wrong.

California Sales and Use Taxes do apply to such purchases. It is collected on all purchases from companies that have presence in California, even if one buys items from out of state locations (i.e. Dell computers, I was charged CA Sales Tax by Dell, even though I bought it on line from Texas). Due to logistical difficulties of tracking out of state purchases from companies that do not have offices or facilities in CA (i.e. LL Bean), Sales and Use Taxes are not collected on such purchases, despite CA tax code sections which provide for the assessment of the applicable tax.

I would not be surprised if state officials take the position that you registered a car that has never been in Alaska in that state for the specific purpose of subverting the CA Sales and Use Tax provisions.

Please keep us updated AFTER you visit the DMV to register your car.

 

Re: Interstate purchase - Buy in a different state than you

I got Belle in Montana no sales tax. Since I had the VIN number in advance I got the paper work and registered it in Washington. I even had the plates when I flew in to Helena. Washington is tough on collecting it sales tax. A few years ago there was a task force to catch cheaters who bought cars in Oregon (no sales tax) they would get a mail drop in Oregon. At that time we also had a yearly excise tax based on the current value of the car. People with expensive cars and those with big RV particularly the Class As. Did this. They could save a ton of bucks and since the excise tax was paid yearly it was like paying sales tax every year. The state takes a aggressive stance on this because we have no income tax. Years ago my wife and I drove to Washington with a new car. Ohio let us wave the sales tax there and pay it here, but some states will not let you do that. I don't know Washington law is if you get a car pay sales tax elsewhere and come here to register.

 

oh ya!! glad you reminded me of that henry, speedball if you think paying sales tax in WA is wrong, you should have been here a few years ago when they made you pay tax on the accessed value of your vehicle EVERY SINGLE YEAR!!!

ya thats right... sales tax every year.

 

<div class='quotetop'>QUOTE(DaveinOlyWA\";p=\"45585)</div>

No, that would be a personal property tax, not a sales tax.

 

call it what you want, it all gets taken from the same place!!

 

This thread has gone way off base ....... turned into "tit for tat" ... not exactly what I expected from people in this community. I assumed most Prius owners were more enlightened. I simply posted my "real life" experience when describing my out of state purchase. My purchase is a done deal. People can second guess all they wish ... but I handled this transaction exactly as described ..... None of the issues addressed by others applied to my transaction ... nor will they ever. Before buying my Prius, I called the California DMV and was told that if I brought a car into California that was already titled and registered in my name from another state .... the vehicle would only be subject to standard transfer and annual registration fees ... There would be No Sales Tax. This is why I arranged my purchase as I did. I could've bought this vehicle in any state ... but I intentionally choose a state that has no sales tax and a motivated dealer that was interested in my business. End of story.

I'm a member of forums for other vehicles I own as well. Postings on these other forums are typically handled in a professional, non-judgemental manner .... with respect for others points of view and experiences .... typically addressing only the technical issues discussed. I must say that I'm disappointed with the tone of some on this forum. I recommend to these indiviuals that they handle their purchases (and tax matters) any way they wish ..... They can continue to live in fear and vote their candidate, Bush, who best exemplifies this mentality. I didn't post my experience to start an endless debate. This thread started as a request for information about the pro's and con's of out of state purchases .... I simply posted my personal experience ... which is accurate and based in fact ....

This will be my last visit to PriusChat.com.

 

speedball:

you related your experience and made statements that do not apply to all areas including mine. i stated it as such, you said you found it hard to believe. well so be it.

if you want a bunch of people that do nothing but agree with what you say even if you are wrong then maybe you should go elsewhere.

if you want honest feedback on your posts, then this is the place to be.

 

Re: Interstate purchase - Buy in a different state than you

Hay state laws are weird very weird. It is not for mere mortals to understand them. We must accept what is. If we try to understand the machinations of the political mind we risk becoming politicians. I can not imagine a more gruesome state.