Out-of-State car purchasers pay tax twice?!

SoCal 370Z · 12-01-2010, 12:56 PM

Quote:

Originally Posted by BeachZTT

But just buy it from Lou and have it shipped to you. You will get a better deal anyway.

EValentin1 · 12-01-2010, 10:59 PM

Quote:

Originally Posted by Mike

Just saw this post from a california dealer on the corvette forum, having a sale on ZR1s. This was at the bottom:

Out Of State Buyers pay no fees. If you would like to fly in and drive the car home, you will have to pay 9.25% California sales tax. You can have the car shipped from our dealership to your state and you won't have to pay the 9.25% California sales tax. You will be responsible for shipping, registering, and paying the sales tax in your own state

I seem to recall that when I was in the military and lived in CA but was a florida resident, anytime I bought a car, I paid CA sales tax, and then FL would waive the difference between the two when registering, but it was always zero because CA taxes are higher then FL.

I just went through something similar. Big pain in the *** but it all worked out. So I bought my Z in New Jersey. While at the dealer I was getting ready to sign and noticed they were charging 9% sales tax....this set off alarms in my head. When i asked it was "to cover oursleves in case you register the car in a state that has a higher tax and we dont want to get stuck paying the difference." I still questioned them because i opted for the dealer to register the car themselves in Virginia (where i lived at the time. Im military so i move quite a bit). Probably would have been easier to just register the car myself and save me the hassle. Anyway, they ended up sending all the info to the Virginia DMV (tax in VA is 3%). After Virginia reviewed all the paperwork and sent the plates to the dealer, they also included information about the VA tax only being 3%. Long story short, the dealer reimbursed me 6% tax on the purchase. Confusing I know...but like i said it all worked out in the end! If you have any more questions feel free to shoot me a PM.

Super Tanooki · 12-02-2010, 08:31 PM

Thanks for all you guys' help.

This...

Quote:

Originally Posted by Mike

Just saw this post from a california dealer on the corvette forum, having a sale on ZR1s. This was at the bottom:

Out Of State Buyers pay no fees. If you would like to fly in and drive the car home, you will have to pay 9.25% California sales tax. You can have the car shipped from our dealership to your state and you won't have to pay the 9.25% California sales tax. You will be responsible for shipping, registering, and paying the sales tax in your own state

I seem to recall that when I was in the military and lived in CA but was a florida resident, anytime I bought a car, I paid CA sales tax, and then FL would waive the difference between the two when registering, but it was always zero because CA taxes are higher then FL.

...and this...

Quote:

Originally Posted by ClemsonWill

Mike beat me too it. California sales tax is high. You might be better off shipping it so you only have to pay your state sales tax. (South Carolina max is $300 for automobiles

) Property taxes will always be paid in your home state.

...make perfect sense - basically, I buy the car in Cali, I'll pay Cali tax, which is higher than the tax in my state, Nevada. And in that case I might be better off paying shipping (or just waiting to buy one in Nevada) so that i only pay NV tax. Right?

But then this...

Quote:

Originally Posted by FuszNissan

Mike is correct, you pay tax where you register the car.

...seems like a conflicting statement. I'll be registering the car in Vegas, because that's where I live. Sooo... I pay Nevada tax?

And this...

Quote:

Originally Posted by EValentin1

After Virginia reviewed all the paperwork and sent the plates to the dealer, they also included information about the VA tax only being 3%. Long story short, the dealer reimbursed me 6% tax on the purchase. Confusing I know...but like i said it all worked out in the end! If you have any more questions feel free to shoot me a PM.

...says to me the dealer will want to charge me Cali tax, but so long as I point out that the car will be registered in Nevada, they'll charge me NV tax (or reimburse the difference after the sale goes through).

Sorry, am I being a dumbass? It doesn't seem clear.

Oh, and don't worry Josh - I won't be taking any chances with insurance for my precious Z.

EValentin1 · 12-02-2010, 08:43 PM

Quote:

Originally Posted by Super Tanooki

Thanks for all you guys' help.

...says to me the dealer will want to charge me Cali tax, but so long as I point out that the car will be registered in Nevada, they'll charge me NV tax (or reimburse the difference after the sale goes through).

Sorry, am I being a dumbass? It doesn't seem clear.

Correct. You should get reimbursed if the tax in NV is less than the tax they charge you after the registration process is complete.

Mike · 12-02-2010, 09:08 PM

no, with california and nevada, its basically if you buy it in california and take delivery in california, you pay california sales tax. If nevada sales tax is lower, you will pay no additional tax when you register it, but you won't get a refund either. If nevada tax is higher, you will pay the additional tax that is the difference between what you already paid and what you would have paid in nevada.

EValentin1 · 12-02-2010, 09:29 PM

Quote:

Originally Posted by Mike

no, with california and nevada, its basically if you buy it in california and take delivery in california, you pay california sales tax. If nevada sales tax is lower, you will pay no additional tax when you register it, but you won't get a refund either. If nevada tax is higher, you will pay the additional tax that is the difference between what you already paid and what you would have paid in nevada.

hmmm that doesnt seem right. ive talked to many friends who have bought cars in different states (not necessairly NJ and registered in VA) and they have been reimbursed if the tax where they register the car is lower... did a quick search and found some info from NV.

"Buying A Vehicle - Out-of-State Dealer Sales
Out-of-state vehicle dealers must comply with their own state's laws regarding sales to non-residents. Ask about a movement permit and for details on how the vehicle will be titled before you buy. Be certain to read and understand the sales or lease contract before signing. An out-of-state dealer may or may not collect sales tax. The Nevada DMV will verify whatever tax was paid and charge the buyer any difference between that amount and what would have been due in Nevada. See the Nevada Department of Taxation Sales and Use Tax Publications for current tax rates. Rates vary by county.

You must register the vehicle at a DMV Full Service Office before the expiration date of any movement permit issued or 30 days maximum. Please bring all documents provided by the dealer. You must have:

Invoice or Bill of Sale, and one of the following:
Title
Manufacturer's Certificate of Origin
Security Agreement
Lease Agreement
Purchase Order
Nevada Evidence of Insurance Card
Nevada Emissions Vehicle Inspection Report if needed
VIN Inspection
Application for Vehicle Registration (VP-222)"

Straight from NV DMV site.

I guess im interpreting this as they can possibly reimburse you if the tax is lower than what they charge you in CA...?

m4a1mustang · 12-02-2010, 09:36 PM

I'm late to the party, but I bought my Mustang from FuszNissan in St. Louis. I paid sales tax on the car when I registered it in my home state (Virginia) and that was it.

Just make sure you check your state laws to see how long you're legally allowed to drive the car in state before you register it. In VA I had 30 days, which I think is the norm.

Super Tanooki · 12-02-2010, 11:59 PM

Quote:

Originally Posted by EValentin1

hmmm that doesnt seem right. ive talked to many friends who have bought cars in different states (not necessairly NJ and registered in VA) and they have been reimbursed if the tax where they register the car is lower... did a quick search and found some info from NV.

"Buying A Vehicle - Out-of-State Dealer Sales
Out-of-state vehicle dealers must comply with their own state's laws regarding sales to non-residents. Ask about a movement permit and for details on how the vehicle will be titled before you buy. Be certain to read and understand the sales or lease contract before signing. An out-of-state dealer may or may not collect sales tax. The Nevada DMV will verify whatever tax was paid and charge the buyer any difference between that amount and what would have been due in Nevada. See the Nevada Department of Taxation Sales and Use Tax Publications for current tax rates. Rates vary by county.

You must register the vehicle at a DMV Full Service Office before the expiration date of any movement permit issued or 30 days maximum. Please bring all documents provided by the dealer. You must have:

Invoice or Bill of Sale, and one of the following:
Title
Manufacturer's Certificate of Origin
Security Agreement
Lease Agreement
Purchase Order
Nevada Evidence of Insurance Card
Nevada Emissions Vehicle Inspection Report if needed
VIN Inspection
Application for Vehicle Registration (VP-222)"

Straight from NV DMV site.

I guess im interpreting this as they can possibly reimburse you if the tax is lower than what they charge you in CA...?

Yeah I called and spoke to another LA-based dealership and this is pretty much what they told me. This sounds about right - cool. Thanks guys.

At least the good news still stands - I DON'T have to pay tax twice.

Me: 1 - Father-in-law: 0.

(Actually he turned out to be right with his claim that vitamin C evaporates from orange juice if left uncovered, which sounded utterly ridiculous to me, so I guess it's 1-1).

definitionxmk · 12-03-2010, 03:41 PM

hmmm this is all quite interesting as I will be going to cali and buying my car... then having it shipped to hawaii!

m4a1mustang · 12-03-2010, 03:53 PM

Quote:

Originally Posted by SoCal 370Z

But if you go to Lou to pick up the car he will buy you breakfast.

NitroZ · 06-03-2016, 12:06 AM

I just did this. The law now works likes this. You pay the state tax for where you buy the vehicle. If the tax is the same or higher than Nevada, there is no issue. But, if where I buy the car is less than Nevada, I have to pay the difference. In my case, Cali taxes are higher than Nevada, so I owed nothing. The deal I got on the car made of for the extra 1.75% extra I paid in taxes. Plus, I got them to reimburse me for the plane ticket to fly from Reno to Orange County. All in all I am super happy with everything.

barncobob · 06-13-2016, 12:43 PM

I live in CA. bought a car in IL., paid 6.2% IL tax, registered it in calif. and had to pay difference in state taxes.belive CA ends up with the entire amount, IL. forwards it.

ssmoked · 07-16-2016, 03:08 AM

The term to look for is "reciprocal tax", where two different states could have completely different rules. Best is to call DMV and not rely on dealer, since all they want to do is complete the deal as fast and possible.

Spooler · 07-17-2016, 06:01 PM

I just bought a car in Illinois and had it shipped to me in Ga. When I took my paperwork to the tag office, I paid the tax on the car then. After the tax was paid, I was able to register the car in Ga. Since the car was used, I was taxed on the Ga value, not what I paid.

ssmoked · 07-18-2016, 12:43 AM

Quote:

Originally Posted by Spooler

I just bought a car in Illinois and had it shipped to me in Ga. When I took my paperwork to the tag office, I paid the tax on the car then. After the tax was paid, I was able to register the car in Ga. Since the car was used, I was taxed on the Ga value, not what I paid.

So... Did you come out ahead

12-02-2010, 09:08 PM	#20 (permalink)
Mike The370Z.com Sponsor Join Date: Jun 2009 Location: Loganville, GA Posts: 5,944 Drives: 370z Rep Power: 2186	no, with california and nevada, its basically if you buy it in california and take delivery in california, you pay california sales tax. If nevada sales tax is lower, you will pay no additional tax when you register it, but you won't get a refund either. If nevada tax is higher, you will pay the additional tax that is the difference between what you already paid and what you would have paid in nevada. __________________ NISSAN: 75 280Z / 86 300ZX GLL /87 Sentra SE / 03 350Z / 23 Z Porsche: 93 968 / 23 Macan GTS / 93 968

12-02-2010, 09:36 PM	#22 (permalink)
m4a1mustang A True Z Fanatic Join Date: Feb 2009 Location: Northern VA Posts: 55,385 Drives: on two wheels Rep Power: 6962	I'm late to the party, but I bought my Mustang from FuszNissan in St. Louis. I paid sales tax on the car when I registered it in my home state (Virginia) and that was it. Just make sure you check your state laws to see how long you're legally allowed to drive the car in state before you register it. In VA I had 30 days, which I think is the norm. __________________ - Steve Zs & Coffee - Saturdays at 10AM in Fairfax, VA and Columbia, MD (Click the banner!) LIKE us on Facebook!

12-03-2010, 03:41 PM	#24 (permalink)
definitionxmk Track Member Join Date: Jul 2009 Location: Los Angeles CA Posts: 973 Drives: Stage 2 SC 370Z Rep Power: 17	hmmm this is all quite interesting as I will be going to cali and buying my car... then having it shipped to hawaii! __________________ *FALKEN . AMUSE . STANCE . INVIDIA . MINES . TOMMY KAIRA . BRIDE . VOLK RACING . GTM* Featured in DSPORT issue #137 - Follow me on Instagram: @definitionxmk

06-03-2016, 12:06 AM	#26 (permalink)
NitroZ Base Member Join Date: May 2016 Location: Reno, Nv Posts: 18 Drives: 2009 370Z Touring Rep Power: 9	Out of State Purchase , California/Nevada I just did this. The law now works likes this. You pay the state tax for where you buy the vehicle. If the tax is the same or higher than Nevada, there is no issue. But, if where I buy the car is less than Nevada, I have to pay the difference. In my case, Cali taxes are higher than Nevada, so I owed nothing. The deal I got on the car made of for the extra 1.75% extra I paid in taxes. Plus, I got them to reimburse me for the plane ticket to fly from Reno to Orange County. All in all I am super happy with everything.

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06-13-2016, 12:43 PM	#27 (permalink)
barncobob A True Z Fanatic Join Date: Sep 2015 Location: hangtown, CA Posts: 1,164 Drives: 16 370Z auto Rep Power: 590	I live in CA. bought a car in IL., paid 6.2% IL tax, registered it in calif. and had to pay difference in state taxes.belive CA ends up with the entire amount, IL. forwards it.

07-16-2016, 03:08 AM	#28 (permalink)
ssmoked Enthusiast Member Join Date: Jun 2011 Location: California Posts: 487 Drives: Charger Hellcat Rep Power: 14	The term to look for is "reciprocal tax", where two different states could have completely different rules. Best is to call DMV and not rely on dealer, since all they want to do is complete the deal as fast and possible.

07-17-2016, 06:01 PM	#29 (permalink)
Spooler A True Z Fanatic Join Date: Jun 2014 Location: Ga Posts: 13,830 Drives: 2013 Nismo 370z Rep Power: 2684392	I just bought a car in Illinois and had it shipped to me in Ga. When I took my paperwork to the tag office, I paid the tax on the car then. After the tax was paid, I was able to register the car in Ga. Since the car was used, I was taxed on the Ga value, not what I paid.