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Old 06-28-2012, 10:51 AM
 
1 posts, read 37,239 times
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does anyone know if I buy a vehicle out of state do I have to pay the sales tax in that state where I buy it or do I NOT have to pay sales tax because I have a residence out of state? Thanks
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Old 06-28-2012, 11:06 AM
 
Location: Gallatin, TN
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I'm 99% sure you have to pay the state sales tax in the state in which you purchased the vehicle. Think of it this way, if you bought gasoline in Alabama, you'd have to pay the Alabama state sales tax on gasoline even though you're a TN resident.

I'm not a tax expert or a car registration expert either. I'd call the dealer you are going to buy the vehicle from and ask them. Then maybe ask a local dealer here in Nashville for comparison.
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Old 06-28-2012, 01:11 PM
 
Location: Nashville
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I bought a car in Atlanta a few years ago from a small car dealer. I didn't pay sales tax in Georgia though. When I got back to Nashville and got an emissions test....I paid sales tax when I went and got my tag. I'm no expert though....but I do remember that's how it worked at the time. Things could be different now.
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Old 06-28-2012, 02:00 PM
 
Location: Gallatin, TN
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Hmm...interesting. Well, I very well could be wrong too.
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Old 06-28-2012, 02:05 PM
 
Location: Gallatin, TN
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OK, here's what I found. This website says

Quote:
You will pay the sales tax based on wherever the car was bought. So, for example, if you live in Ohio but buy your car in Pennsylvania, you will pay the Pennsylvania sales tax rate. This applies to both new car and used car purchases.

However, here's where it gets tricky. Depending on where you live, your state's motor vehicle agency may require you to provide a receipt showing the sales tax you paid. If it's less than what you would have paid in your home state, you may have to pay the difference in order to get your license plates or title your car.

Keep in mind that sales tax can differ by state, county, and city. You should always calculate the sales tax on your car purchase as it can make a significant difference. If you're unsure about the prevailing tax rates, call the dealer and ask for this information.
And there's this from the Sullivan County, TN county clerk's office, which should be true statewide:

Quote:
Customers need to renew in their county of residence", (as statute requires T.C.A. 55-4-105e)
New Vehicle: Purchaser needs to have in their possession (MSO) Manufacturer Statement Origin, completed by dealer and purchaser. Also, need bill of sale stating tax collected and lien holder (if any). If vehicle is purchased out of state and sales tax is lower than TN, then the difference will be collected at time of registration. The (MSO) will also need the mileage on it or odometer statement
So looks like not only do you have to pay the sales tax in the state you purchase it in, but if it is lower than TN's sales tax...you will have to pay the difference before getting your local tags.
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Old 06-28-2012, 02:10 PM
 
Location: Brentwood, Tennessee
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Yes, years ago we got a nice $600 surprise when we went to get tags for a van we bought from my brother-in-law in Georgia.

Bring your checkbook.
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Old 06-28-2012, 03:16 PM
 
Location: Nashville
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I think I did have to sign a form or something stating I was tagging the car in TN (to avoid paying tax in GA). It's been several years...so it's kind of fuzzy. And...I'm assuming tax is higher in TN than GA. So it may vary depending on which state you purchase a car in.
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Old 06-28-2012, 08:31 PM
 
Location: Franklin, TN
3,760 posts, read 7,086,830 times
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No matter where you buy it, you will have to pay sales tax SOMEWHERE and I'm pretty sure it's in the state where you live or where you get tags for the car. Unless you drive it to the Baja Peninsula? It's probably cooler down there at the moment . . . .
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Old 06-29-2012, 11:24 PM
 
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I've bought at least a dozen used cars from private sellers over the years and have always paid the sales tax in the state they were being registered. If you were buying from an out of state car dealer it might be different, but private sales are taxed in the state of the buyer. I assume I'm doing it correctly since I'm not in jail right now.
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Old 06-30-2012, 07:54 AM
 
Location: Nashville, TN
957 posts, read 3,698,765 times
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I've always paid tax in the state of registration, even from a new dealer. Before we moved here I bought a Harley from Bosworth Harley on one our house scouting missions. At the time we were Delaware residents. I didn't pay TN tax, loaded the bike on a trailer, took it back to DE and registered it where there is not sales tax. Six months later we moved here and just transferred the tags to TN....still paying no TN sales tax.

I've also bought cars out of state as a TN resident, both private party and from dealers and paid tax in TN when I registered.
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