Sales tax on vehicle while registering from AZ to TX (Arlington: insurance, home)

[JenJen82]

Hi everybody! Just need some help unferstanding couple things before i register my car in Arlington Tx. So the tax accessor website doesnt give much detail as far as the sales tax you pay. I currently have AZ plates, i did already get my Tx insurance and yesterday my vehicle inspection. Now the DMV site says youll either pay 6.25% of vehicles putchase price, or$90 i believe. I thought sales tax was higher in texas, but i read AZ is higher so I eoukd prob just pay tje $90. Im still financing my vehicle. And have had it for almost 2 years. Bought it in Az where I was living from an actual dealership, not 3rd party. The website really doesnt tell me which to expect to pay, or if i need any dicuments for the sales tax portion like a bill of sale. Can someone with knowledge of this please give me some insight on what to expect or how it works. I would appreciate it.

[Seguinite]

There's a four page thread about this very thing a few posts down. I didn't think you paid any sales tax at all if you bought in another state... so I learned something.

[impulsivetravelerguy]

If you're a new resident you pay a $90 new resident fee and this exempts you from paying the sales tax on your vehicle(s) upon converting everything over.

[FalconheadWest]

My understanding is that you only pay sales tax if you are coming from a state that does not have sales tax on cars. That prevents people from buying cars in tax free states and bringing the cars here for free.

[10scoachrick]

Originally Posted by impulsivetravelerguy

If you're a new resident you pay a $90 new resident fee and this exempts you from paying the sales tax on your vehicle(s) upon converting everything over.

Originally Posted by FalconheadWest

My understanding is that you only pay sales tax if you are coming from a state that does not have sales tax on cars. That prevents people from buying cars in tax free states and bringing the cars here for free.

Pretty sure if it's a recent purchase(not clear on 'recent') that included NO or significantly LOWER sales tax in the other state, you would have to pay the difference between what was paid back home and the 6.25 that Texas levies on vehicles. The $90 is a registration fee rather than a sales tax fee.

[impulsivetravelerguy]

Originally Posted by 10scoachrick

Pretty sure if it's a recent purchase(not clear on 'recent') that included NO or significantly LOWER sales tax in the other state, you would have to pay the difference between what was paid back home and the 6.25 that Texas levies on vehicles. The $90 is a registration fee rather than a sales tax fee.

It sounded like they were a new resident so the $90 pretty much exempts all tax. If they aren't, then what you said sounds right.

[10scoachrick]

Originally Posted by impulsivetravelerguy

It sounded like they were a new resident so the $90 pretty much exempts all tax. If they aren't, then what you said sounds right.

Here we go:
From TXDMV.gov...

"The base registration fee in Texas is $50.75 plus $1 for TexasSure, the electronic insurance verification program and other Department of Public Safety initiatives, and $1 for improvements to the registration and titling computer system. So, total state registration is $52.75 but counties may add other fees to this cost. The state portion of your vehicle's inspection fee will be due at this time. As a new resident, you also will pay sales tax-related fees required by the state's Comptroller of Public Accounts. Sales tax fees on a vehicle can be $90 or the difference between your previous state's sales tax and the Texas sales tax "


So, someone coming from a state with a lower sales tax rate will pay the difference between that rate and 6.25 Tx sales tax.

I do believe there is a time limit on the application of the sales tax difference. We didn't deal with that since we came from 7% taxing rate in GA; but I can't imagine they would collect a tax difference on a vehicle purchased many years ago in the former state of residence.(BUT nothing would surprise me!!!)

South Carolina used to have a very low cap on vehicle sales tax and anyone bringing in a relatively new vehicle from there to register here would get clobbered! Again, I'm not sure of the time limit on the purchase.