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Vehicle Sales Tax Questions

947 messages,  Last post on Nov 23, 2009 at 10:05 AM

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#7 of 947 by gtahobe 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).   Cheers. Gtab
#8 of 947 Re: [gtahobe] by kyfdx 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.   regards, kyfdx
#9 of 947 Most states around us by alfox 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 947 Re: Most states around us [alfox] by robr2 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.
#11 of 947 Re: Most states around us [alfox] by kyfdx HOST Sep 16, 2004 (11:54 am)
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".
#12 of 947 Wowza by akangl Sep 16, 2004 (12:23 pm)
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.
#13 of 947 Re: Wowza [akangl] by robr2 Sep 16, 2004 (12:55 pm)
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?
#14 of 947 by akangl Sep 16, 2004 (1:50 pm)
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.
#15 of 947 No sales tax by weaselinsuit Sep 16, 2004 (3:07 pm)
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%.
#16 of 947 Very straightforward here.... by tornado25 Sep 16, 2004 (4:24 pm)
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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