Why Buy a Car in TN. MS of AK? +s/-s??? (Memphis: sales, insurance)

[team_red_captain]

I am relocating to memphis.
I know of some tax benefits for living in MS compared to TN, but if I purchase a car in MS and live in TN is there still a tax benefit/ cost savings?

What about insurance?

Looking for advice? perspective

thanks

[JMT]

Originally Posted by team_red_captain

I am relocating to memphis.
I know of some tax benefits for living in MS compared to TN, but if I purchase a car in MS and live in TN is there still a tax benefit/ cost savings?

What about insurance?

Looking for advice? perspective

thanks

There's no advantage to buying your car in Mississippi and living in Tennessee. When you register your new car in Tennessee, you will pay the difference in sales tax.

But keep in mind that Mississippi has ridiculously high car tag fees based on the value of the car, so if you think you can borrow a friend's address in Mississippi to register your car and save the Tennessee sales tax, think again. And it's not just a one-time thing. You pay those high Mississippi fees every year, a bit less each year as the value of your car decreases. When I was a student at Ole Miss I had an old Subaru and still paid a few hundred bucks each year to register the car in Mississippi. In the long run it would've been much cheaper to have the car registered in Tennessee even with the additional one-time Tennessee sales tax.

[jsherman9901]

Originally Posted by JMT

When I was a student at Ole Miss I had an old Subaru and still paid a few hundred bucks each year to register the car in Mississippi.

You're kidding, right? Both of my cars are less than five years old and it costs me less than $100/each per year for Mississippi tags.

[JMT]

Originally Posted by jsherman9901

You're kidding, right? Both of my cars are less than five years old and it costs me less than $100/each per year for Mississippi tags.

I'm glad it's changed, then. It was ridiculously high when I was a student in Mississippi, but I do remember one of the fellows running for governor used lowering Mississippi's outrageously high car tag fees as one of his platforms, so I guess it worked.

I did find this at the Mississippi State Tax Commission web site:

"Mississippi owners of vehicles with a Gross Vehicle Weight (GVW) of 10,000 lbs or less must pay motor vehicle ad valorem taxes on their vehicles at the time of registration. Motor vehicle ad valorem tax is based on the assessed value of the vehicle multiplied by the millage rate set by the local county government. (Contact your local county tax collector for the millage rates.) Assessed value has been established as 30% of the Manufacturer's Suggested Retail Price plus a reduction of a certain percentage for depreciation over 10 years. A minimum assessed value is set at $100.00 for passenger vehicles. This ad valorem tax is revenue used by the local governments. Any exemptions of the motor vehicle ad valorem tax are found in Section 27-51-41 of the Mississippi Code of 1972, Annotated."

[tigergal]

Originally Posted by JMT

There's no advantage to buying your car in Mississippi and living in Tennessee. When you register your new car in Tennessee, you will pay the difference in sales tax.

But keep in mind that Mississippi has ridiculously high car tag fees based on the value of the car, so if you think you can borrow a friend's address in Mississippi to register your car and save the Tennessee sales tax, think again. And it's not just a one-time thing. You pay those high Mississippi fees every year, a bit less each year as the value of your car decreases. When I was a student at Ole Miss I had an old Subaru and still paid a few hundred bucks each year to register the car in Mississippi. In the long run it would've been much cheaper to have the car registered in Tennessee even with the additional one-time Tennessee sales tax.

When we bought our car in Mississippi, we, of course, licensed it and paid sales tax in Tennessee. What's interesting, though, is by buying it in Mississippi, we were only charged the Tennessee sales/use tax, not the Memphis add-on, so we saved the 2% local tax on the car.

[JMT]

Originally Posted by tigergal

When we bought our car in Mississippi, we, of course, licensed it and paid sales tax in Tennessee. What's interesting, though, is by buying it in Mississippi, we were only charged the Tennessee sales/use tax, not the Memphis add-on, so we saved the 2% local tax on the car.

I hadn't thought about that! So I guess it is worth it, then, to buy your new car in Mississippi. Or Arkansas, I suppose.

[team_red_captain]

Thanks for the perspective.. much appreciated?

[team_red_captain]

not quite sure why there is a ? after appreciated....:-)

[Pearlbob]

I know A LOT of people who use fake addresses in TN, (and live in MS) because they don't want to register their cars in MS because the registration and renewals are so high. Well, not FAKE addresses, but they will use the address of a brother or aunt. The last person who mentioned it said her registration was going to be over $500 that year.

I have no clue how it works, never looked into it, but I know of at least those several people who go out of their way and basically lie to the govt to save hundreds of dollars in MS registration fees.

[MISSHALE]

If you buy a car in tennessee but live in mississippi do you have to pay taxes in tennessee and mississippi when you go to buy your tag??