Sales tax on car that purchased in another state. Need help please! (Seattle: for sale)

[theyreinphx]

We just moved here from Arizona three weeks ago.

In March my husband was in a car accident and totaled his car (in Arizona.)

We purchased a new car in April from a private party and there is no sales tax in Arizona associated with this.

In May my husband was offered a job in Seattle and he accepted.

We moved to the Seattle area in the beginning of June.

We decided to get both our cars registered today along with our WA licenses.

The state will not register our newer car due to the fact that it has been more than 90 days since we purchased it until we pay sales tax on the car (approximately $1300.00!). She said there is no way around this since our move was official through the post office and the IRS for the beginning of June.

Here are some facts to which this makes no sense to me:

1. When we purchased the car we resided in the State of Arizona.
2. The title was printed in the State of Arizona.
3. We were Arizona residents at the time of purchase!

I can see this being an issue for WA residents who try to go to another state to purchase a vehicle to avoid sales tax but we were NOT WA residents at the time of purchase.

Does anyone know if there is a way around this? It makes no sense to me whatsoever.

[Inkpoe]

There isn't a legal way around it. Actually, that's how it is in a lot of places/states. Which means there are people who are having to pay the sales tax twice! In your case, I think its not the sales tax that's the issue... it's the Use tax (since you mentioned its been more than 90 days): http://www.dol.wa.gov/vehicleregistration/usetax.html

[TonyG5003]

I'm confused by this. I bought two new cars in Texas last May (and paid almost no sales tax), then moved to Washington in August. Because I went back and forth for a while, I didn't actually register in WA for a while. The sales and/or use tax never came up.

I'll be interested to read other responses to this. Perhaps I'm not understanding the 90 day bit.

[grammyR]

I had to pay a similat tax when I bought a used vehicle in MI and w/in 1 month I moved to NC where I had to pay this " personal" tax. Therby paying tax in two States on the same " used" car. I am now planning to move to the Seattle area. Just closed on a home ad will ship out my " used" oder vehicle. I have not yet sold my Fl home and therfor will own in both States. I had not planned to register my car right away or change my DL . Will I get penalized for this?

[RVD90277]

ok i don't actually know what i'm talking about so please take this with a grain of salt.

but i did a few internet searches around this and my understanding is that you will have to pay a use tax in WA based on WA sales tax rates but you get a credit for any sales that that you already paid.

for leases, some states charge you sales tax up front on the total cost of the car while most states just charge sales tax on each payment. i believe WA charges for each payment.

in my case, i have a car lease and i am moving to seattle. i believe when i register the car in WA, my lease payments will simply be adjusted to the new sales tax rate.

for car purchases, i would have just had to pay the difference between WA state tax and CA state tax (where i bought my car).

[texastrigirl]

Originally Posted by TonyG5003

I'm confused by this. I bought two new cars in Texas last May (and paid almost no sales tax), then moved to Washington in August. Because I went back and forth for a while, I didn't actually register in WA for a while. The sales and/or use tax never came up.

I'll be interested to read other responses to this. Perhaps I'm not understanding the 90 day bit.

Well, here's the law...

http://dor.wa.gov/Content/GetAFormOr...eVehicles.aspx

How is that you paid almost no sales tax in Texas? Texas charges sales tax on auto purchases. Last two I purchased in TX (in 2003 and 2007), I paid it.

http://window.state.tx.us/taxinfo/mtr_veh/mv_su.html

This situation happened to me when I purchased an auto in Iowa and moved to CO...but I knew I was moving so I didn't pay it in Iowa and instead registered it in CO and paid there.

[TonyG5003]

Originally Posted by texastrigirl

How is that you paid almost no sales tax in Texas? Texas charges sales tax on auto purchases. Last two I purchased in TX (in 2003 and 2007), I paid it.

Because my trade was worth almost as much as what I was buying. In Texas (and Washington State) you only pay tax on the difference.

[Ultrarunner]

Many States have policies to discourage buying out of State and then bringing the vehicle in.

Washington is particularly aggressive in that Oregon has no State Sales Tax and many would simply choose to buy in a no Sales Tax State if they could.

That said... I believe WA would give you an offset for Sale Tax Paid in another State... since you didn't pay any... the full WA tax is due at time of registration.

Last I looked into it... a family could bring in 2 vehicles when moving to WA without the tax issue if they had owned the cars for a long period of time... some States are 6 months and others 1 year.

It is all about revenue.

Don't feel too bad... I here from people moving to California that are hit with this all the time... plus emission requirements too.