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Vehicle Sales Tax Questions

947 messages, Last post on Nov 23, 2009 at 10:05 AM
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Yes.. that is my understanding of reciprocity also... That the state allows you to buy the car WITHOUT paying sales tax, then you pay it in your home state.. Sales tax in Kentucky used to be a LOT more than Ohio... And all the dealerships in KY near the state line would advertise: "If you do not live in Kentucky, you do not pay Kentucky sales tax". |
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| All this talk of sales tax and buying cars is making me VERY glad I live in Alaska. We don't have a state sales tax.........yet. | |
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My understanding that it may happen soon. But don't some cities (all right the one city) and towns charge sales tax on some items? |
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| Some do on certain items, so far cars haven't been taxed. It will happen eventually, its just one of those things, but for now we are enjoying NOT having a state sales tax or state income tax. | |
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| No provincial sales tax here in Alberta either....but we have the national GST of 7%. Better than Ontario I guess who pay a whopping 15%. | |
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No matter where you buy a car, you owe the tax appropriate for where you live. (I sort of emphasize that because some counties in WI have no sales tax, some counties have there own tax and in the 5 SE WI counties, there is the county tax plus additional tax for Miller Park). So, if I buy a car in IL, I have to title/register it in WI, where I live. If (and I don't even know if they would do this) they tried to charge me sales and/or personal property tax--not sure if they have that in IL--then I would probably get that as a credit against tax owed to WI. You don't pay it to both places. IL has no legal right to the money, since you aren't a resident. |
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Unless it went up.......... In NY sales tax just went to 8.25% in my area from 7%. Florida has no state income tax last I knew..... Funny tho in Fla.......You can claim a BK and still KEEP your personal home ! Quite a few of the stock market swindlers bought multi millon dollar homes in Fla. for cash. Then filed BK and kept them and kept the $$$$ they stole! |
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| You're absolutely right boomer, but if you add in the GST the total is 15%. Its a rough go lol | |
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| Thanks for the AZ specific information. If I did the numbers right the savings on the $15644.00 between Phoenix and Scottsdale sales tax amounts to $23.46.With Huyundai there are only the 4 items to consider,but do you know anything about how Mitsubishi operates? I have heard that some invoices have a line that would best translate as Dealer extra profit. That may have been a joke. | |
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While you are correct in that you pay sales tax on vehicles for where you are a resident, it's not technically correct to state "IL has no legal right to the money, since you aren't a resident". In every other retail transaction the sales tax is paid, not according to residence, but in the jurisdiction where it is purchased. If I go to California and purchase from a California retailer (anything but an automobile) then sales tax is charged at the rate of location of purchase. I have never seen a good argument as to why a person's resident jurisdiction gets the sales tax of a transaction completed in another. Personal Property Tax/Ad Valoram yes, I understand, but the sales tax should go to the jurisdiction where the sale happens, as in all other transactions. |
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