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#1 of 1083 Vehicle Sales Tax Questions
by Kirstie@Edmunds HOST
Sep 17, 2004 (5:31 am)
Based on recent conversations, it looks like we need a separate discussion to cover sales tax questions. Do you pay where you buy, or where you live? How can you calculate what you'll owe? Can you finance the tax? Let's post our questions and answers here.
Roving Host & Future Vehicles Host
Sep 15, 2004 (8:32 pm)
I am purchasing within the next two weeks either a Hyundai Santa Fe or Mitsubishi Outlander both the very most basic model.I will most likely purchase the vehicle in Phoenix AZ as the Hyundai dealer in Tucson would not take my interest in looking at a new vehicle seriously. Will deal via the internet or over the telephone. I live in Cochise County, about 140 miles from Phoenix. I have had one quote from a dealer which was $15,644 base price, $1,323.00 tax $299.00 Documents, and $342.38 Lic. After some corrections was told the out the door price was $17,529.07. Are those four items, base price, tax , documents, and licsense the total of costs that a resident of this county in this state will pay? I realise that it will have to be reregistered in one year. Am I overlooking anything?
Sep 15, 2004 (11:35 pm)
Although I can't comment specifically on who lives where, what I can tell you is for YOU, the WHERE you buy it, in most cases, is irrelevant to where you LIVE.
That is I live in Town A, WI and buy a car in Town B, WI, in a different county, 30 miles away. Doesn't matter. The tax I pay is based on where I live and where the car will be garaged.
In most cases, that difference is only "Does my county have a sales tax and the county where I bought it does not"? This is NOT, really, a big issue to consider when buyer either vehicle, IMO.
#4 of 1083 Re: david [tornado25]
Sep 16, 2004 (9:00 am)
In Arizona the sales tax is determined by where you buy the car.
If you buy a car in Phoenix you pay 8.1 %, if you buy a car in Scottsdale you pay 7.95%.
As far as the Hyundai is concerned, you'll pay the selling price, sales tax, license fees, and the doc fee. Thats it.
#5 of 1083 My experience
Sep 16, 2004 (10:24 am)
We live in Virginia, just across the border from Maryland.
When we bought cars in Maryland, we paid sales tax to Virginia. That's how it works around here.
#6 of 1083 Here
Sep 16, 2004 (10:32 am)
a MA resident who buys a car anywhere and registers it in MA pays sales tax to MA - no matter who else you paid.
Sep 16, 2004 (11:01 am)
No matter who else you paid? Ouch?
I live in Ohio (6.5%) and purchased in Indiana (6.0%). I paid 6.0% in Indiana at the time of purchase. When I went to get my Ohio Certificate of Title, I paid an additional .5% (6.5% due to Ohio, minus 6.0% credit as paid to Indiana, I think they call this reciprocity?).
If the Indiana tax where 7.0%, I would have paid 7% to Indiana and owed no additional tax to Ohio (nor would I have received the extra 0.5% back).
#8 of 1083 Re: [gtahobe]
by kyfdx@Edmunds HOST
Sep 16, 2004 (11:07 am)
My guess is... that Indiana rebates that amount to Ohio..
I bought my M-I-L, who lives in Indiana, a car in Ohio.. Paid $zero sales tax to Ohio.. They gave her a non-resident title, and she paid the tax in Indiana, where she lives..
Without the rebate, I can't see Ohio letting Indiana keep that money...
I know it doesn't work that way between Ohio and Kentucky.
#9 of 1083 Most states around us
Sep 16, 2004 (11:26 am)
have reciprocity where if a MA resident buys a car out of state they sell it without sales tax, and issue only a temp plate until you can get home and register in your home state. I had a car die in NY years ago and that's how it worked.
If you move into MA from another state, and can show that you complied with that state's sales tax laws when you bought the car, they do not charge sales tax in MA. The laws are designed to prevent people from going to NH to buy a car, for example, to avoid MA sales tax.
#10 of 1083 Re: Most states around us [alfox]
Sep 16, 2004 (11:35 am)
Further since in New England it's pretty easy to cross borders to do anything, most dealers have the paperwork for the surrounding states. When I bought a car in NH, the dealer had all the MA forms ready to go. I moved my plate to the new car and had 48 hours to go to the Registry and pay my tax and transfer the plate.