Sales and Use Tax on cars when moving to Tenn from another state (Chattanooga: 2013, lease)

[xz2y]

I'm trying to calculate the amount of sales and use tax for a car coming into Tennessee for the first time. Let's say the car was purchased 10 years ago in another state and sales tax was paid at the time of purchase.

On the TN DMV website, I'm not seeing anything referencing how long a car is owned prior to coming into the state before the difference in sales tax is due.

For example, a new resident brings in a 10 y/o car that was purchased new at $20,000. Sales tax of 6% was paid on that purchase in another state 10 years ago.

With the TN DMV website info in mind, it looks like in my example above, the new resident would pay the difference between 6% sales tax paid in another state 10 years ago ($1200) and the TN sales tax using the calculations above ($1480), for a difference of $280.

Is that correct? For a 10 year old car new to the state?

Most states only charge sales tax on cars coming into a state if they were purchased within the last 90 days.
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From the TN DMV website:
Sales taxes will be calculated as follows:
Local Tax - 2.25% of the first $1,600 of the purchase price (maximum of $36)
Single Article Tax - 2.75% of the amount of the purchase price between $1,600.01 and $3,200 (maximum of $44)
State Tax - 7% of the entire purchase price

"Note: If a vehicle is purchased in another state, the owner must pay the difference in the tax rate and the current rate in the State of Tennessee in additional to the local tax."
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Another question is whether TN has an annual property tax on cars (sometimes called an excise tax)? I can't find any references to that. I'm not sure what the difference is between a sales tax and a use tax on cars. Is the use tax a separate tax?

[Serious Conversation]

I can't definitively answer most of your questions. I'd call a county clerk's office in the county of your prospective residency to have them help.

TN has no personal property tax on cars. Some counties have wheel taxes. I believe some metro Nashville counties have emissions checks. A small fee is likely attached there.

I live in a county where there is no wheel tax nor emissions check. Registration renewal is about $30.

I bought a car in TN in 2013, moved out of state, then moved back in 2016. I paid the original sales tax back in 2013, and didn't pay anything upon moving back. I don't think the clerk's office checked that.

[CountryGirl2b=]

Pretty sure you just need to register your out of state car and get a TN title. Sales tax is only charged on a car you buy, not a car you are moving with. Suspect they can tell from the out of state registration, that you bought it 10 years ago. I don’t remember having to pay very much for my car when I moved here.

Just found this:

Sales Tax Exemptions (continued)

Relocation – Motor Vehicles

A person relocating to Tennessee on a bona fide change of residence from another state can import the person’s personal motor vehicle or personal manufactured home into Tennessee without payment of Tennessee use tax. This use tax exemption for personal motor vehicles of persons relocating to Tennessee does not apply to property, including motor vehicles, of businesses relocating to Tennessee.

[JJAF]

When I moved here with 2 vehicles, there was no additional tax or odd fee added to registering my vehicles in Tennessee with the exception of having to go through Emissions testing yearly (even a brand new vehicle) and a "wheel tax" because I am in Rutherford County. My registration fees were around 82$ per vehicle. The Emission test, which has to be completed before registering vehicle, is 9$ per vehicle. You can do that up to 90 days before registering and the PASS result be valid.

[xz2y]

Originally Posted by CountryGirl2b=

Pretty sure you just need to register your out of state car and get a TN title. Sales tax is only charged on a car you buy, not a car you are moving with. Suspect they can tell from the out of state registration, that you bought it 10 years ago. I don’t remember having to pay very much for my car when I moved here.

Just found this:

Sales Tax Exemptions (continued)

Relocation – Motor Vehicles

A person relocating to Tennessee on a bona fide change of residence from another state can import the person’s personal motor vehicle or personal manufactured home into Tennessee without payment of Tennessee use tax. This use tax exemption for personal motor vehicles of persons relocating to Tennessee does not apply to property, including motor vehicles, of businesses relocating to Tennessee.

Thank you for the great info. Very helpful.

Is the use tax different from a sales tax?

Some states levy a "use" tax when cars are registered for the first time in a new state (North Carolina), which is different than a sales tax.

From your quote above, maybe the "use" tax in TN applies only to businesses, not individuals, when relocating.

[xz2y]

Originally Posted by JJAF

When I moved here with 2 vehicles, there was no additional tax or odd fee added to registering my vehicles in Tennessee with the exception of having to go through Emissions testing yearly (even a brand new vehicle) and a "wheel tax" because I am in Rutherford County. My registration fees were around 82$ per vehicle. The Emission test, which has to be completed before registering vehicle, is 9$ per vehicle. You can do that up to 90 days before registering and the PASS result be valid.

Thank you for posting. Good to know that there wasn't any additional tax or fee for your cars, other than normal reg fees and Emissions testing.

What is a "wheel tax"?

[CountryGirl2b=]

Wheel Tax is part of your registration . . and it's different in each county in TN. Some counties don't have a Wheel Tax so it depends on where you are registering your car. But generally it's less than $100. The bottom line is that you really don't have to worry about how much it will cost you to register your car in TN, unless it doesn't pass the emissions test.



Tennessee wants to make sure that if you go to another state to buy a car, that it gets some money. Maybe it's for things you USE in the state but didn't buy here?



Again, won't count if you are moving here with cars you have had for a while.



I remember moving to California in . . . the 90's? And having to pay $750 because it did not have a catalytic converter. THAT was a shock!

[septimus]

if your car is leased, the leased amount may be adjusted because of the sales tax. TN's sales tax is much higher than most other states.

[Serious Conversation]

Originally Posted by xz2y

Thank you for posting. Good to know that there wasn't any additional tax or fee for your cars, other than normal reg fees and Emissions testing.

What is a "wheel tax"?

It's basically an additional county level registration fee that the counties have options to tack on.

[JMT]

Originally Posted by CountryGirl2b=

The bottom line is that you really don't have to worry about how much it will cost you to register your car in TN, unless it doesn't pass the emissions test.

Just to clarify, out of 95 counties in Tennessee, only 6 require an emissions test. Five are in the Nashville area (Davidson, Rutherford, Sumner, Williamson, Wilson) and the 6th is Chattanooga (Hamilton County).