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Old 09-23-2013, 08:51 AM
 
2 posts, read 4,707 times
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Hello, I am seeking some advice as a new incoming resident of VA. I currently live in MD and am looking for apartments near the metro, preferably Alexandria (I work in DC). I'll be moving at the end of October, the issue is I am also looking to buy a (used) car and I wanted to know if I should wait until I get a VA address to register the car in VA. This is also my first time buying a car all by myself and I wanted to know what would be the most cost effective route. I'm also worried about paying double tax if I buy a car in MD or PA before moving to VA in a few short weeks, as I am well aware of the VA property tax which I'll have to register and pay for after I choose a residence. Could I get away with driving around with temporary tags until I get a VA address, registration, and license?

Also another side note: will I have to continue paying MD income tax if my name is on a mortgage in MD? Even after moving to VA? My dad added my name to the mortgage to keep the house after my parents split up.. but I don't pay the mortgage, he does. Thanks in advance for any advice!
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Old 09-23-2013, 09:34 AM
 
Location: Northern Virginia
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a) Personal property tax is prorated--so whenever you move to Virginia, update your registration at the DMV and you will get the appropriate bill for the portion of the year you owned the vehicle here. It is not the same as sales tax. You will pay sales tax on the car no matter when/where you buy it.

b) You will not be able to register the car in VA until you have a VA address (and proof of that address--a lease, a bill, etc with the address on it). You have a 60 day (I believe) grace period to get the registration transferred over. The information about moving from out of state is all on the DMV website.
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Old 09-23-2013, 10:16 AM
 
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One thing to keep in mind is that sales tax on the car will be cheaper in VA than in MD. 6% in MD and I think VA is now 4% (was 3%) Once you have a VA address it doesn't matter if you buy the car in another state, the sales tax will apply based on residency. Also, if I remember correctly, tags are cheaper in VA as well.

Having a mortgage with your name on it in MD won't do anything in this scenario for VA residency
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Old 09-23-2013, 10:16 AM
 
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You will probably need to file both VA and MD tax returns for the year in which you move, but after that you will only owe tax to and file in VA (your state of residence) due to reciprocity agreements.
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Old 09-23-2013, 10:46 AM
 
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Middlin, would it be to my advantage that I wait until I have a proof of a VA address (lease agreement) if I want to buy the car with VA tax rates?
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Old 09-23-2013, 10:48 AM
 
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Also keep in mind that if you buy the car in Maryland and move to VA, you will need to get a VA state inspection and emissions before registering the car. Make sure whatever you buy, will pass.
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Old 09-23-2013, 02:49 PM
 
1,529 posts, read 2,263,770 times
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Yes, I would wait until you have a VA address and then buy a car. Cheaper sales tax and then you won't have to hassle with changing everything over as well.
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