Help - Buying Vehicle Out of State Tax Question (MD) (sales, DMV)

[jc19944]

Hello, I live in NC and was wanting to purchase a vehicle out of state from a private dealership. They said they could handle the sales tax and registration for the vehicle in NC, and that I would be charged NC sales tax. However, I looked at the purchase order and the sales tax amount is marked as a flat 7.25% (Wake County) amount of the vehicles value. However, looking at the NC DMV website, it says that NC charges a 3% Highway Use Tax when a title changes hands instead of a sales tax for vehicles. So am I right in thinking that this is wrong, or am i missing something?

[twingles]

Originally Posted by jc19944

Hello, I live in NC and was wanting to purchase a vehicle out of state from a private dealership. They said they could handle the sales tax and registration for the vehicle in NC, and that I would be charged NC sales tax. However, I looked at the purchase order and the sales tax amount is marked as a flat 7.25% (Wake County) amount of the vehicles value. However, looking at the NC DMV website, it says that NC charges a 3% Highway Use Tax when a title changes hands instead of a sales tax for vehicles. So am I right in thinking that this is wrong, or am i missing something?

You are correct. No sales tax at time of sale. HUT and then property tax every year.

makes you wonder what would become of that 7.25% if you'd paid it, correct?

[jc19944]

Originally Posted by twingles

You are correct. No sales tax at time of sale. HUT and then property tax every year.

makes you wonder what would become of that 7.25% if you'd paid it, correct?

Thanks, sounds like they don't have experience handling this, and I imagine if they do change it to 3% it won't be handled properly and find its way to the DMV. I assume they will now try to charge me MD sales tax, which would still leave me paying the 3% highway tax. May just have to cancel and look for a vehicle in NC as I anticipate problems with this.

[twingles]

I would check with the MD and NC DMVs as there is surely a mechanism to overcome this. People buy vehicles in other states all the time.

[Tyberli]

I did this shortly before moving here. Purchased in Bethesda MD and they did the NC paperwork for me. They set it up as follows (and explained all this to me beforehand):

- charged 6% MD sales tax on the car
- they did the titling paperwork etc remitting 3% to NC DMV
- then they sent me a check for the remaining 3% tax

This was Ourisman Honda in Bethesda and the dealer was Richard Sears, would highly recommend him.