Question about sales tax

Registration location.

Taxes are a part of living in this great country. What you suggest is illegal. It also puts more of a burden on the rest of us honest people.

 

Like grasshopper said, if you don't pay sales tax then other people have to pay more to support USA.

As for the tax rule, you have to check how NV does business when it comes to automobile tax.
I live in CA. If my memory serves me correctly, you have to pay sales tax when you bring a new car into CA within 90 days of its initial sales (provided you didn't pay tax in another state for it). Some "sneaky" people would purchase the cars, and register in OR for 90 days before bringing it back to CA to avoid sales tax. But, you still need to pay the extra registeration/license fee, etc. in CA (in addition to what you pay to OR). Again, your state may have different rules on this.

Pay tax, please. So others could pay less.

 

Buying a car in another state with no sales tax is neither illegal nor immoral. People do it all the time.

The problem is this will not eliminate your tax. When you register your car in NV, you will be assessed the NV rate.

What would be illegal is if you pretended to live in OR and registered it there to avoid the tax. That would be fraud.

 

ceric and nmrickie are correct. Only by following your purchase in OR by actually registering the car there (using the address of a friend, or SOME OR address), could you get away with what you're asking about. I've known people who have done it. Problem is, you have to KEEP re-registering it---that is, keep committing fraud---to avoid your NV tax. If you were found out, such as because of a serious accident, I don't know what the penalty in NV would be, but you can check into that

Then there's "dual residency" in two states...do you like Crater Lake?... :lol:

 

Cars are one of the few things where states have developed a way of collecting sales tax on the purchase when it is brought into the state. On the other hand, consumer goods and just about anything else that is not registered or licensed is impossible for the State to post-collect tax on. It is probably best to purchase in-state and avoid the hassels of dealing with the cost of re-registration in your home state.

 

No harm in trying to save money. Folks have created LLC's in Montana and purchased high-end RV's in that state to avoid paying sales tax in their own state. That may offend some, but I can understand that paying several thousand in sales tax on high end purchases is a big pill to swallow.

People purchase goods all the time on vacation or drive out of state to purchase furniture to avoid sales/use tax. If I buy a bank CD in my children's name and avoid paying income tax up to the unearned income limit, am I a bad person?

 

Unfortunately in California you must declare all out of state purchases on your taxes (and yes, they will audit you) and are charged sales tax on them, sales tax being the difference in waht you paid in sales tax and what California would require in sales tx (not sure how this works if you paid a higher sales tax, I believe it shoudl be credited back to you though).

 

As another Nevadan, this won't work. Nevada will look at the sales tax paid to Oregon (which will be zero), and then charge you the differential when you register the car in Nevada. So, regardless of where you buy the car, you'll wind up paying the tax amount you would have paid in Nevada (Clark County, as you state, is 7.75%). Incidentally, if you purchase a car in a state with a higher rate, such as California, you'll wind up paying the California tax, but no Nevada tax. Nevada will only charge you the differential.

There are ways around this, of course, but probably aren't terribly practical. Some of the people that own RV's purchased in Montana, for instance, actually set up a corporation to 'own' the vehicle. This can work for a $250,000 RV that you are paying cash for, but isn't as practical with a $25,000 Prius... especially if you plan to finance it.

A good resource may be found on the Nevada DMV website - Buying A Vehicle - Out-of-State Dealer Sales. Buying a car out of state to save taxes is a big and popular scam here, so Nevada doesn't take kindly to it. They'll get you either way.

Dan

 

Oh, one more thing... the out-of-state dealer will not charge Nevada taxes... they aren't responsible for that. DMV will charge you when you register your car.

Don't want you to get a nasty surprise!

 

Someone has probably already answered you, but there is no way to elude Sales tax if your state of residence charges it. When you purchase or renew your license plates the computer will cross-reference your name, address and make/model adn make sure you have paid tax. You can delay it, but some states charge a penalty.

 

Hey, there is no runaway taxes thing. I'm ordering a hybrid in NM and they do not charge taxes on hybrid, but I live in Texas so they are charging me 6.25% Texas taxes. It is based on residence also registration and title are based on residency. I am with you saving what we could since we work hard to earn each cent of it, but it doesn't work that way. You can call the dealer in Oregon and ask them the out of the door price. It should be specified every detail of it including your residence taxes. Wish you best of luck, i'm waiting for my Hybrid, it should be arrive next month. Best of luck,

 

The term that you probably didn't know to search for is "use tax".

CA DMV will charge you a use tax equal to sales tax when you try to register your vehicle. If you purchased the car less than 12 months before the time you try to register it, the assumption is that you purchased the car for use in CA and you will be charged use tax equal to sales tax. If it has been more than 12 months, you will have to provide evidence that you really did use the vehicle for 12 months before bringing it into California in order to be exempt from the use tax.

http://www.boe.ca.gov/sutax/faqtrans.htm#ff

 

I nearly got my car in NV and had it registered in CA, but they couldn't get the model I wanted. I'm glad it worked out the way it did.

For a bit of trivia, when Boeing sells a plane, they fly the plane themselves to a certain point over the ocean. When that's done they send a radio message and then let the new owner's crew take over. The actual sale is made when the message is received and there is no sales tax.