Paying Sales Tax and Registering Car in Houston

[Htown2013]

Originally Posted by Seguinite

They certainly can make it difficult for non-standard actions. Not entirely sure why car registration isn't a national thing. That would probably make EVERYTHING harder, but at least the rules would be consistent.

Some states charge significantly more for registration, like California and others where registration is more like a property tax. Texas is so much cheaper. Also, Texas allows to deduct trade in value from sales tax, while other states do not.

[RMESMH]

Originally Posted by Htown2013

Some states charge significantly more for registration, like California and others where registration is more like a property tax. Texas is so much cheaper. Also, Texas allows to deduct trade in value from sales tax, while other states do not.

LOL.

[mojo101]

if title is needed to register,how do all the local car buyers register their car if the finance co holds the title,not everyone pays cash for their car?

[resonator]

You get a title, shows a lien is on it, different color than the one the banker holds. Tax guys are happy to use the one you have.

[mojo101]

where do you get that title?

[WRM20]

Originally Posted by mojo101

where do you get that title?

BBank or Credit Union has always sent me the non-negotiable title in the past.

[resonator]

Order as many dups as you want from TX DMV. Costs a few $.

[BoltJam3s]

Originally Posted by RMESMH

^^^^^

This is correct.

I bought a new car in another state (cash) since moving to Texas (zero available in Texas re one equipment requirement).

The other state has a slightly higher tax rate than Texas, and differs not only by county but with different rates for different tiered amounts (first 5k is one percentage, and so on). The dealership knew that I lived in Texas, but charged me the local amount (I thought I was supposed to pay the local amount).

The tax office in Montgomery County told me that was wrong....that the dealer can collect it, but that they are supposed to collect the correct Texas amount.

Unless this has changed recently, the correct Texas amount for cars is the base state rate.

My understanding is that it is the base rate statewide so that an advantage isn't given to dealers in areas that don't charge the maximum allowable additional local percent (which is two percent), and so that people don't try to game a registration address that is in a flat base state rate area with no local percent added.

The Montgomery County Tax Office rep completed my paperwork and told me that I didn't owe them anything, and that I had overpaid the dealer re the dealer charging the dealership's local rate in that state. She even calculated the amount for me and told me to call the dealer and get them to refund that amount. I ended up not having to do that because when I grabbed my mail that day, there was a check in the mail from the dealership. Their accounting department caught the mistake. The 'tiering' wasn't calculated correctly, but it was only short under twenty dollars (not enough to call about and worry about following up on), so I deposited the check.

Can you tell me what all paperwork you had to take to your county office to get this done?

[RMESMH]

Originally Posted by BoltJam3s

Can you tell me what all paperwork you had to take to your county office to get this done?

I just handed the envelope the dealership gave me to the clerk and let her look it over. The receipt/bill of sale was in there, as well as some paperwork/notifications that may have been specific to requirement in that state (unrelated to Texas), and the temporary registration (which was for that other state) was in there. There wasn't any loan agreement, as I paid in full at the dealership (no financing).