Sounds wrong to me. I live in Indiana, but generally buy my cars in Kentucky. When I buy a car in KY, I pay Indiana taxes.
There may have to be a reciprocal tax agreement between states. I'm not really sure about that. Your best bet would be to call your local license branch and maybe one in the other state.
(we only charge Brits double tax. Still making up for the Tea Tax. I keed!)
