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Hello all! I am currently a NH resident and my girlfriend and I just bought a home in Amesbury so I'm starting the process of moving all my info over to MA. Back 4 years ago I bought a Honda from Atamian Honda in Tewksbury and registered it in NH. I went to the RMV today and they told me that since I bought the vehicle in MA, first registered it in NH and am now registering it in MA I have to pay the sales tax PLUS INTEREST?!? What the heck is that all about? I'm totally fine, and was expecting, to pay MA sales tax but had no idea that interest would be tacked on as well. Has anyone ever heard of this or run into this problem? The tax plus interest is so high that now I'm having issues even paying for it! And of course, I found this out after I changed my car insurance info and my license over to MA!
Every purchaser of a motor vehicle, trailer or other vehicle, who is required to register or title the vehicle in Massachusetts, must, within ten days following the date of purchase, transfer or use of such vehicle within Massachusetts, file Form RMV-1, Application for Title and Registration and pay any applicable sales or use tax to the Registrar of Motor Vehicles.
Every purchaser of a motor vehicle, trailer or other vehicle, who is not required to register or title the vehicle in Massachusetts, must, by the twentieth day of the month following the date of purchase, transfer or use of such vehicle within Massachusetts, file a completed Form ST-7R, Motor Vehicle Certificate of Payment of Sales or Use Tax pdf format of st_7r.pdf and pay any applicable tax to the Department of Revenue or Registry of Motor Vehicles.
If the sales/use tax is not paid timely, interest and penalties are assessed in addition to the tax.
I don't know the answer, but if you have AAA or know some on who does, I would suggest calling an office and asking them, in my experience they are generally extremely helpful and knowledgable in navigating the RMV.
I certainly wouldn't take anything an RMV employee tells me as fact.
I certainly wouldn't take anything an RMV employee tells me as fact.
Very true and don't forget it. I predict that you will not like the MA RMV. We've had some luck asking the local police when three different RMVs told us three different things. I have found that the most reliable/believable RMV in our (your) area is the one in Danvers. It's right in a mall and it's bright and clean and the employees tended to be almost pleasant. At times.
Motor Vehicle Purchases in Massachusetts by Nonresidents
If a nonresident of Massachusetts purchases a motor vehicle in Massachusetts and takes title to and/or possession of the vehicle in Massachusetts, the sale is subject to the Massachusetts sales/use tax irrespective of whether the nonresident intends to use the motor vehicle within or outside Massachusetts.
So yeah, you owe the tax and the interest, the only chance you would have to have it not paid is if you had been in a state with a sales tax and you paid the sales tax there, but with no sales tax in NH, you are SOL in this situation.
Um. No. OP tried to screw Massachusetts and it's residents who pay their sales taxes.
If you can't take the consequences, don't take the risks. OP did something illegal and now has to pay for it.
Same way everyone on the border buys liquor and tobacco, etc. in NH for consumption in Msss but still want the Mass services those taxes pay for.
Hahaha what? We tried to screw MA residents? Care to elaborate? Shouldn't you be more upset with Atamian Honda, a Massachusetts company, because they sold us the car and never charged us for the tax? You do realize it wasn't a private sale from some random guy on craigslist who wasn't sure what the law was, right? Being that we were NH residents and had never bought a car in MA before we had no idea what the process was. We also put faith in the company that we were dealing with that they knew Massachusetts laws and would take care of us, and other MA residents like yourself.
And just to clear everything up, MA has dropped the interest because Atamian is at fault for not charging us at the time of purchase. Seems to me that the state of Massachusetts has just screwed you over in multiple ways, not the wife and I. I do appreciate your insight on consequences and risks though. If the wife and I ever think about breaking the law on accident again, I'll make sure to PM you first.
To everybody else that posted helpful information, thank you.
And just to clear everything up, MA has dropped the interest because Atamian is at fault for not charging us at the time of purchase.
This statement still is not correct.
As a NH resident buying a car in MA you did not need to pay MA sales tax at the time of purchase. Atamian most definitely knew this. Car dealers in MA and NH know what they need to do to sell to people in both states. People who have a New Hampshire address and register their vehicle in New Hampshire, do not pay any Massachusetts sales tax.
Now that you are titling and registering the car in MA, you have to pay sales tax on the current book value of the car, not the original purchase price. If you were moving here from New York, for example, and had already paid sales tax to New York, there would be no sales tax due in MA.
I'm curious what Registry office is giving you this misinformation?
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