Welcome to City-Data.com Forum!
U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Automotive
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 08-29-2010, 11:40 PM
 
211 posts, read 282,121 times
Reputation: 32

Advertisements

Hi,

Is the sales tax on a car purchase dependent on where the dealer is OR where the buyer resides?

Thanks.
Reply With Quote Quick reply to this message

 
Old 08-29-2010, 11:49 PM
 
792 posts, read 1,301,467 times
Reputation: 1107
Usually based on the buyers State/county of residence, if bought from a dealer.
Reply With Quote Quick reply to this message
 
Old 08-30-2010, 04:21 AM
 
Location: WA
5,641 posts, read 24,944,880 times
Reputation: 6574
Where it will be registered and licensed.
Reply With Quote Quick reply to this message
 
Old 08-30-2010, 10:05 AM
 
692 posts, read 3,141,304 times
Reputation: 357
In Washington State, New cars sales are charged sales tax based on the location of the Selling Dealer.

If I live in Seattle Washington and buy a new car from a dealer in Vancouver Washington I will pay Vancouver sales tax rates. The same applies to what ever I buy in Vancouver that is taxable.
Dealer furnishes me with an Invoice showing sales tax amt. paid and a temporary paper licence for my rear window.
Plates will be delivered to my mailing address for installation.

To veriify just call your local licensing agency.
Reply With Quote Quick reply to this message
 
Old 08-30-2010, 10:23 AM
 
19,023 posts, read 25,955,711 times
Reputation: 7365
Yeah it depends on a few things. You never get out of the taxes though. You can buy a car in New Hampshire sales tax free. No sales tax here, but then you would still have to pay that tax in the place you live. We pay it here in town tax and state tax. A sort of excise tax.
Reply With Quote Quick reply to this message
 
Old 08-30-2010, 11:02 AM
 
10,135 posts, read 27,462,852 times
Reputation: 8400
Quote:
Originally Posted by Mac_Muz View Post
Yeah it depends on a few things. You never get out of the taxes though. You can buy a car in New Hampshire sales tax free. No sales tax here, but then you would still have to pay that tax in the place you live. We pay it here in town tax and state tax. A sort of excise tax.
I hate to disagree with my friend Mac, but:

It varies from state to state. In Kentucky, sales tax is paid if the car is registered and get Kentucky plates. Oppositely, in Ohio, the sales tax is payable when the car is first titled by the owner in Ohio.

Accordingly, a car could be purchased, titled and delivered to Kentucky. If it is not registered such as where it is being restored or whatnot, no sales tax is paid. Then if it is re-titled and registered in Ohio there is no sales tax. It took me forty years to figure out this wormhole.
\
Many states have no sales tax on cars and so a car could be purchased and titled in that state and then tax avoided when the vehicle is registered in another state.

But one cannot generalize on the subject as every state has their own rules.
Reply With Quote Quick reply to this message
 
Old 08-30-2010, 11:26 AM
 
692 posts, read 3,141,304 times
Reputation: 357
Quote:
Originally Posted by silverfox View Post
In Washington State, New cars sales are charged sales tax based on the location of the Selling Dealer.

If I live in Seattle Washington and buy a new car from a dealer in Vancouver Washington I will pay Vancouver sales tax rates. The same applies to what ever I buy in Vancouver that is taxable.
Dealer furnishes me with an Invoice showing sales tax amt. paid and a temporary paper licence for my rear window.
Plates will be delivered to my mailing address for installation.

To veriify just call your local licensing agency.



If I purchase a new car in Portland Oregon, there is no sales tax.

In this case I would pay sales tax based on my permanent residence address if not in Oregon.
That would be Seattle, but there are even different rates within that general area.
Reply With Quote Quick reply to this message
 
Old 08-30-2010, 11:30 AM
 
3,189 posts, read 4,980,454 times
Reputation: 1032
To make things even more murky....

I've bought cars in Ohio before at dealerships who have Pennsylvania notaries and all the paperwork needed to register the car in PA (this was in towns close to the border). In that case, the Ohio dealership collected PA sales tax and sent the money in to PENNDOT.
Reply With Quote Quick reply to this message
 
Old 08-30-2010, 12:01 PM
 
Location: The beautiful Rogue Valley, Oregon
7,785 posts, read 18,817,826 times
Reputation: 10783
Quote:
Originally Posted by silverfox View Post
If I purchase a new car in Portland Oregon, there is no sales tax.

In this case I would pay sales tax based on my permanent residence address if not in Oregon.
That would be Seattle, but there are even different rates within that general area.
If you live in Washington, where you will register the car, you'll pay your local sales tax at the time of registration. If you try to establish an Oregon residence to register the car there, Oregon will want you to pay income tax....

When we lived in Washington we'd trade in our old car, even though the dealer's price wasn't particularly good, in part because you only pay sales tax on the difference between your trade-in value and the new car price and in part because it was just easier.
Reply With Quote Quick reply to this message
 
Old 08-30-2010, 12:17 PM
 
19,023 posts, read 25,955,711 times
Reputation: 7365
Quote:
Originally Posted by wilson1010 View Post
I hate to disagree with my friend Mac, but:

It varies from state to state. In Kentucky, sales tax is paid if the car is registered and get Kentucky plates. Oppositely, in Ohio, the sales tax is payable when the car is first titled by the owner in Ohio.

Accordingly, a car could be purchased, titled and delivered to Kentucky. If it is not registered such as where it is being restored or whatnot, no sales tax is paid. Then if it is re-titled and registered in Ohio there is no sales tax. It took me forty years to figure out this wormhole.
\
Many states have no sales tax on cars and so a car could be purchased and titled in that state and then tax avoided when the vehicle is registered in another state.

But one cannot generalize on the subject as every state has their own rules.

Wilson, I don't see how that is a disagreement a bit.

Anyone here could buy a brand new car from any NH dealer and ship it anywhere never to pay a sales tax in NH. Happens all the time.

If the car is never registered, not likely, but 'IF' then no taxes would ever be paid.

One time I drove a Mass dealer car to NH, where the sale took place so a NH resident could buy the car in NH and not in Mass. therby avoid Mass sales taxes. he still paid the NH tax which is a fee involved with his town and the state, just not called tax.

Now i see town, county and state fees no matter what they are called a tax. My ccw is a tax, my drivers lic is a tax, but these are called fee's.

To get rid of a dead car tire there is a fee, which is a tax. And so on, but I see no disagreement.

Maybe I am missing a main point. I have no idea hpw Ohio does what.

I bought a used van from a used car lot in Arkanasas for need of a rolling bed room. They have strange taxes. You pay after 1 years time. But the really strange thing is right after you pay, you simple get a note from the dealer and drive away with no plates and drive that way 30 days with no plates before you can get any!

The whole time i felt guilty and criminal like!
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:


Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Automotive
Similar Threads

All times are GMT -6. The time now is 01:33 PM.

© 2005-2024, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Contact Us - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37 - Top