Notices
C4 General Discussion General C4 Corvette Discussion not covered in Tech

Purchasing a car out of State - Taxes Involved

Thread Tools
 
Search this Thread
 
Old 12-14-2002, 05:23 PM
  #1  
Trizney
Burning Brakes
Thread Starter
 
Trizney's Avatar
 
Member Since: May 2001
Location: Austin TX
Posts: 895
Likes: 0
Received 1 Like on 1 Post

Default Purchasing a car out of State - Taxes Involved

I am in Texas, and if I purchase a Vette out of state, am I required to pay taxes on it? Shouldn't cars be similar to other purchases when buying out of state in that there are no taxes? Thanks in advance.
Old 12-14-2002, 05:26 PM
  #2  
n1kki6
Le Mans Master
 
n1kki6's Avatar
 
Member Since: Dec 2000
Location: Minneapolis MN
Posts: 8,740
Likes: 0
Received 2 Likes on 2 Posts

Default Re: Purchasing a car out of State - Taxes Involved (Trizney)

you should end up paying texas tax on it when you register but i'm not 100% on that. I just know in minnesota when i was gonna buy one out of state i would have had to pay MN tax.
Old 12-14-2002, 05:32 PM
  #3  
c4cruiser
Team Owner

 
c4cruiser's Avatar
 
Member Since: Dec 1999
Location: Lacey WA RVN 68-69
Posts: 34,873
Received 475 Likes on 422 Posts
NCM Sinkhole Donor

Default Re: Purchasing a car out of State - Taxes Involved (Trizney)

Would probably depend on the state. Here in WA, you don't pay "sales tax" per se on the purchase, but you pay a "use tax" when you apply for plates which is equal to the amount you paid for the car. The old trick of presenting a bill of sale for $100 for a classic-type car (63 Vette for example) doesn't work anymore, either. A new law went into effect earlier this year that allows the state DOL to determine what a fair market value is for the car and you have to pay what they decide.

You'll have to check with your DMV office to get the rules.
Old 12-14-2002, 05:33 PM
  #4  
GS Diva
Safety Car
 
GS Diva's Avatar
 
Member Since: Jan 2001
Location: Conway, SC
Posts: 4,467
Received 142 Likes on 79 Posts

Default Re: Purchasing a car out of State - Taxes Involved (n1kki6)

I bought a Corvette out of state a few years ago and didn't pay any sales tax until I registered it in my home state, MA. I would be inclined to think that works everywhere.

I drove it home using my Cadillac's plates, plus I carried the Caddy's registration and the Corvette bill of sale. My insurance agent said I'd be covered...in MA we have so many days to use the previous car's plates if we're transferring the registration to another car. There's no way to prove that I wasn't going to do that! ;)

Elaine
Old 12-14-2002, 05:35 PM
  #5  
Parrothead
Melting Slicks
 
Parrothead's Avatar
 
Member Since: Jun 2002
Location: Non illegitimi carborundum
Posts: 2,998
Likes: 0
Received 0 Likes on 0 Posts

Default Re: Purchasing a car out of State - Taxes Involved (n1kki6)

Ditto in Ohio. Call your Bureau of Motor Vehicles. I am an Ohio resident and bought my Vette in PA. I knew that Ohio was going to charge me taxes and I was right. If I had paid the sales tax in PA, Ohio would have made me pay it again. It is called a "use tax" here and that tax applies to anything you buy in another state (like Internet purchases) but use in Ohio. You only pay it once (just like a sales tax) and the tax rate is the same as the sales tax.

Good luck.
Old 12-14-2002, 05:55 PM
  #6  
Trizney
Burning Brakes
Thread Starter
 
Trizney's Avatar
 
Member Since: May 2001
Location: Austin TX
Posts: 895
Likes: 0
Received 1 Like on 1 Post

Default Re: Purchasing a car out of State - Taxes Involved (Trizney)

Thanks for everyone's response. I will talk with them on Monday.
Old 12-14-2002, 06:09 PM
  #7  
Newbie85
Racer
 
Member Since: May 2000
Location: Deatsville, Al
Posts: 372
Likes: 0
Received 0 Likes on 0 Posts
Default Re: Purchasing a car out of State - Taxes Involved (Trizney)

I just bought a car in Florida and had a nice little surprise here in Alabama when I went to register it. Not only did I have to pay sales tax but they also tacked on an additional 2% tax (I forget what they called it) :mad

Needless to say, I wasnt too happy..
Old 12-16-2002, 02:58 AM
  #8  
flannel_man
Drifting
 
flannel_man's Avatar
 
Member Since: May 2002
Location: Muskogee OK
Posts: 1,835
Received 166 Likes on 100 Posts
Cruise-In VI Veteran

Default Re: Purchasing a car out of State - Taxes Involved

the taxes I'm not too sure about, however u do have to pay a $250 fee for the little form that you fill out :mad
Old 12-16-2002, 04:26 AM
  #9  
65Z01
Team Owner
 
65Z01's Avatar
 
Member Since: Dec 2000
Location: SE NY
Posts: 90,675
Likes: 0
Received 300 Likes on 274 Posts
Cruise-In II Veteran

Default Re: Purchasing a car out of State - Taxes Involved (Trizney)

I bought my Vette in CA in mid 2000 and had it shipped to Pheonix, where I was working for three months, so paid no sales tax in CA.

After my 30-day plates expired I took a box at Post Boxes R Us and registered the Vette in AZ. The only payment was $200 for first time registry.

At the end of the three months I drove the car to NY where I was mainly working.

Two years later, when the AZ tags expired, I drove it to Akron, OH (my permanent residence) and registered the Vette in OH. Here I only paid registration fees of maybe $30 or so.

I avoided CA sales tax by not taking possession of the Vette in that state; avoided AZ tax (I think) because I was a temp resident; and avoided OH tax (again I think) because I had owned it for two years.

I believe that if I had it shipped directly to OH and initially registered there then I likely would have been taxed on the purchase.
Old 12-17-2002, 05:53 PM
  #10  
Mikez40
Melting Slicks
 
Mikez40's Avatar
 
Member Since: Feb 2001
Location: ZR1 Gathering '04, '05 Northlake Texas
Posts: 2,512
Received 5 Likes on 5 Posts

Default Re: Purchasing a car out of State - Taxes Involved (Trizney)

I bought my ZR-1 in California, and when I registered it here in Texas I had to pay taxes on it. I think it is 6.75% on what you paid for the car. Just go down to the County Tax office and ask for the form you need to fill out for buying a car. All the information you need is on their. You will need to take it with you and have the seller sign it to verify the selling price and mileage.
Old 12-17-2002, 10:14 PM
  #11  
LT4CEZ51
Advanced
 
LT4CEZ51's Avatar
 
Member Since: Aug 2000
Location: St Paul MN
Posts: 97
Likes: 0
Received 0 Likes on 0 Posts
Default Re: Purchasing a car out of State - Taxes Involved (Trizney)

When I bought my Vette, I lived in Austin and bought it from a Florida dealer(Roger's). In Florida I paid the state tax (6%?) and due to a reciprocity agreement with the taxes, I simply paid the difference between FL tax and TX taxes when I got back to TX to register it. I think the difference was 1/4 or 1/2%. The DMV person who did the paperwork indicated that Texas doesn't have reciprocity agreements with all states, and consequently, you could get taxed twice by buying from certain states. I did purchase the car in person and did not have it delivered. I do not think that you have to pay the local (dealer's local) if it is delivered, if memory serves me correctly.
Hope this helps...
Ted
96 CE LT4 Z51
Old 12-18-2002, 11:00 AM
  #12  
fullboogie
Burning Brakes
 
Member Since: Aug 2002
Location: Houston TX
Posts: 848
Likes: 0
Received 0 Likes on 0 Posts
Default Re: Purchasing a car out of State - Taxes Involved (LT4CEZ51)

I just bought mine in N. Carolina, and you only pay taxes when you register it in Texas.
Old 12-18-2002, 02:47 PM
  #13  
1Patriot
Team Owner

 
1Patriot's Avatar
 
Member Since: Sep 1999
Location: Evans, GA
Posts: 34,062
Received 4 Likes on 4 Posts

Default Re: Purchasing a car out of State - Taxes Involved (Trizney)

I have bought 2 used vettes out of state, one in SC and one in FL. Ga does not charge sales tax upon registration if the purchase was from a private owner; but when you buy from a dealership, you pony up the 7 percent or the difference from the sate of purchase.
Old 12-19-2002, 02:20 PM
  #14  
HiRiser
Burning Brakes
 
HiRiser's Avatar
 
Member Since: Aug 2000
Location: traveling nowhere fast, FL
Posts: 1,044
Likes: 0
Received 1 Like on 1 Post

Default Re: Purchasing a car out of State - Taxes Involved (Trizney)

If you buy from a dealer you are forced into paying taxes, some of which (like county)may not transfer to your home state. If you buy from a private party you're golden, because you can wait to transfer title until you are home (of course there are risks there, also)
As posted previously, there are a million games to play on this one.

Get notified of new replies

To Purchasing a car out of State - Taxes Involved




Quick Reply: Purchasing a car out of State - Taxes Involved



All times are GMT -4. The time now is 12:57 PM.