Originally Posted by sunsprit
Absent a sales tax license for a given state, a dealership cannot collect sales taxes for that state. Sales tax collection is a function performed on the part of the dealership for the state only in the state they are licensed to do business in and where they hold a sales tax license.
The dealership that's selling a car in NC, knowing that the purchaser isn't a resident, but filing paperwork in their name to an address there ... is doing something not legal. They may be motivated to do so because they have quotas or territorial dealership agency/manufacturer issues which require them to sell a vehicle into a given geographic area or face adverse consequences with their manufacturer. But this isn't a sales tax issue.
I haven't seen that "big book" at most dealerships I've dealt with around the USA.
Sure they can collect taxes. They then forward it on to the other state in whatever manner they need to. Some states require it to be mailed to the county tax office, some states the DMV...any dealership can do it. If they say they can't, it's just being lazy.
There isn't any required sales tax license, at lest not in Texas, nor anywhere that I know of. I've done at least a hundred out of state deals, everywhere from Maine to Louisiana to Colorado to New Mexico. It's very simple to do.
As for the book, it's a big black 3-ring binder that details every state's taxes and fees and how to do it. I forget the name of the company that distributes it.