Purchasing a PiP Out of State

Discussion in 'Gen 1 Prius Plug-in 2012-2015' started by HillCountryEVer, May 31, 2012.

  1. HillCountryEVer

    HillCountryEVer New Member

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    Hi Everyone, a question for all of you PiP owners who purchased your PiP from state different than the one which you registered your PiP in:

    • Did you pay the Sales tax based on the state you purchased the PiP or did you pay the Sales tax based on the state you registered the PiP?

    I reside in Texas but am planning on purchasing the PiP outside my state. It was my understanding that I would be paying the Sales tax based on the state where I purchased the PiP however I was told today that it is based on where you plan to register the vehicle.

    Please let me know what your experience was if you purchased your PiP in state different than the state where you registered the PiP.

    Thanks!
    :)
     
  2. pineprius

    pineprius 15th Hole #4

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    Live in NC, bought in VA, paid NC taxes.
     
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  3. ksstathead

    ksstathead Active Member

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    I've found that if I buy in California, in person, I pay CA sales tax at 8.75% which is then credited against my home state (Kansas) tax, making Kansas tax zero. The rules vary by state. If one bought a car in Kansas, he'd have 10 days to take it out of Kansas and only pay resident state tax. Suggest google state sales tax rules of both resident state and state of purchase to ensure no double tax is triggered.
     
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  4. bielinsk

    bielinsk Gremlin

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    You pay the tax of where you live. I live in Orange 7.7%, I bought in Manhattan 8.75%, they charged me the tax at where i lived.

    If they didn't do this, someone would open a dealership where there is the lowest tax rate and everyone would go there.

    Out of state "may" be different. This is mainly to accommodate military personal who purchase vehicles when away from home.
     
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  5. rchaput

    rchaput Junior Member

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    I live in Colorado. I purchased my PIP in AZ. I was told that if I took delivery in AZ I would have to pay the AZ taxes. I had the car transported to CO ($400) and will pay the CO taxes. I don't know if I paid the AZ taxes if I could get a credit/refund against my CO taxes
     
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  6. ggood

    ggood Senior Member

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    The rules vary state by state. Some states don't charge their sales tax against cars bought for registration in another state. Some states, like California, will charge their sales tax if you take delivery in California, regardless of where it will be registered. Local (city/county) taxes can be yet another factor. Don't quote me, but when I researched Arizona law, I concluded it was possible to take delivery there and still avoid the state sales tax, but you still have to pay the local city/county sales tax no matter what.

    Almost all, if not all, states, including Texas, (i) charge a sales tax or motor vehicle tax when you go to register a new car in your home state, but (ii) will give you credit for any sales tax paid to another state. Texas is unique in that it doesn't charge regular sales tax on motor vehicles, but instead has a separate, relatively low, 6.25% "motor vehicle tax". Since there is no state sales tax, there is no local sales tax on cars in Texas.

    So, you need to research the local law where you intend to buy. If I had bought a PIP, it would have cost me less overall to pay for delivery to Texas, because of the high overall state and local sales taxes in California, relative to the Texas motor vehicle tax. In other words, the shipping charge was less that the amount by which the California taxes exceeded the Texas tax.
     
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  7. PRPrius

    PRPrius Active Member

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    I purchased from Dianne and had the car shipped to Texas. I paid no sales tax to the state of California. I paid the taxes when I registered the car in Texas. I was planning a trip to California to pick up the car. That changed when I found out that in order to drive the car off the lot, you have to pay California sales tax.
     
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  8. 9G-man

    9G-man Senior Member

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    Bought in VA and paid the tax for where I live, GA. You will do the same.
    Some states are "reciprical tax states" with other states. Meaning the selling state can collect the tax for the state you live in, at time of sale. But, It can turn out to be more of a PITA for you and the dealership to do it that way.
    I suggest paying the tax yourself, when you get back home and register the car .

    It is remotely possible you can pay tax in both states. That is bad.
    For instance, buy in person in CA, and pay tax there. Get it home and pay tax again because you home state doesn't recipricate or credit the CA tax you already paid.
     
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  9. mike33

    mike33 Junior Member

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    I purchased my car in Nevada and shipped it to California. I did not have to pay any taxes at the time of purchase but had to pay $1800 when I registered the car in CA.
     
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  10. Southern Dad

    Southern Dad Active Member

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    Many years ago, I thought I was being slick. I bought a new car in Delaware to avoid paying NJ sales tax. DE has no state sales tax. When I went to register it in NJ they quoted me the amount to plate it with NJ sales tax included. Luckily I was military at the time so I rode a temp tag until shipping it to The Netherlands. It was a brand new Corvette, the taxes were brutal.

    Another thing to consider on a hybrid is battery warranty. Certain states have longer battery warranties.

    iPad ? HD
     
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  11. john1701a

    john1701a Prius Guru

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    Dianne made my out-of-state purchase a simple matter. It worked out fantastic! She definitely gets my recommendation. I paid for the car itself and did all the paperwork through the mail, then had the car trucked from CA to MN. It was an exciting experience to have the process fall into place like that.

    When the car arrived here, I had to wait for the MSO (Manufacturer Statement of Origin) from Toyota itself via her dealership. When I got that, it was just a trip to the local DMV to pay MN registration tax.

    I'm somewhat beside myself owning the only known advanced model in MN still. It sure made the trip to my local dealer interesting today too. After answering salesperson questions about my PHV and one customer test-driving a v model, I was tossed a FOB for a c model to take it out for a test-drive. That dealership had no issue with me buying the PHV elsewhere. They knew I wouldn't be able to wait until 2013 for them to get their first delivery...
     
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  12. blmoore

    blmoore Threadfinder

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    I bought my PiP in MD and live in PA - the tax is the same in both states. I paid 6% tax, and the dealer handled the title transfer. I drove home with a temporary title and tags, and the PA ones arrived about a month later. Although there are no PiP sales in PA yet, my local dealer is in the process of getting certifications needed to do service on them. :)
     
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  13. stacey

    stacey ☆☆☆☆☆

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    My purchase was the same as yours, although no one warned me that I'd need to have my car inspected in PA. It kind of sucked to have to pay for something I was used to already having on a new car. I was halfway home from Bethesda MD before I even realized I didn't have an inspection or emissions sticker on my windshield. Thought about keeping the temp tags on as long as possible just to enjoy the sticker-less windshield for a little longer, but that damn paper plate kept trying to escape from the license plate holder so I gave up and put my plate on. ;)

    Whereabouts in PA are you? Guess I don't have the only plug-in Prius in the state anymore!
     
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  14. alfon

    alfon Senior Member

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    Thats one of the nice things about living in Oregon, no sales tax. We do have
    a state income tax of 9% but you can deduct that from your income tax, where
    a sales tax you couldn't.
     
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  15. blmoore

    blmoore Threadfinder

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    And I thought I was the only PiP in PA! Well -- I'll keep an eye out for you. I'm in the Pottstown area. My local dealer gave me the inspections sticker gratis as a "new car" perk, even though I didn't buy it from them (though all my other cars were bought there.) Still had to pay for emissions... o_O
     
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  16. Southern Dad

    Southern Dad Active Member

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    Stickers? We don't need no sticking stickers! - Okay loosely stolen from one of my favorite movies. Living in Georgia, outside of the metro we do not have emissions or inspection. Even in the Atlanta metro they have emission but no stickers are needed. That's what computers are for, they just add it to your license plate files online.

    Psst, no front plates either!
     
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  17. longterm

    longterm Member

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    [quote="HillCountryEVer, post: 1568448, member:] It was my understanding that I would be paying the Sales tax based on the state where I purchased the PiP however I was told today that it is based on where you plan to register the vehicle.

    Please let me know what your experience was if you purchased your PiP in state different than the state where you registered the PiP.

    Thanks!
    :)[/quote]

    I bought my PHEV in VA, live in TN. The dealer collected TN tax, and I got both the license plate and the title from Tennessee. The dealership couldn't have done it faster and easier; a huge thumbs-up for Alexandria Toyota in Alexandria, VA.
     
  18. retired4999

    retired4999 Prius driver since 2005

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    Bought in Spokane, Wa. Paid taxes in Wisconsin when I got my plates no problem.
     
  19. ksstathead

    ksstathead Active Member

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    Last few years, you can choose to deduct either your state income tax payments or your state and local sales tax.
     
  20. rchaput

    rchaput Junior Member

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    I live in Colorado and purchased my PIP in Arizona. To avoid paying the AZ taxes I had the vehicle transported to CO (PHX to Durango, $ 400) La Plata County where I live does not have a "use" tax. It does have a sales tax. I thought I was home free wrt the county tax (2%.) The first DMV agent told me that since I took possession locally I would have to pay the tax. I disputed the issue and then was told that if the delivery was a condition of sale then I owed the tax (it wasn't.) By demonstrating that the vehicle was transported using a 3rd party and that the dealer made the arrangements as a courtesy I was able to avoid the tax.

    The moral: check your local DMV rules and use a 3rd party shipper (not the dealer.) Don't assume that the DMV agents know the rules.
     
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