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  Topic Review (Newest First)
08-26-2017 09:44 PM
lotusquacious Since we're talking tax oddities when buying cars interstate, here's mine. This was a new car, my Evora 400, bought in Michigan, registered in Nashville, TN.

I decided to pick the car up in Detroit myself and then drive it home. I assumed I'd get a transfer plate in Michigan and register the car and pay taxes in Tennessee. But no. I was told I had to get Michigan's temporary 15 day registration and pay Michigan sales tax and then re-register the car in Nashville and pay any difference to Tennessee's DMV. TN's taxes are slightly higher by the way. In any case it all sounded odd to me since the car was immediately leaving Michigan bound for Nashville. I had assumed the sales taxes were collected by the buyer's state and not in the seller's state.

The Michigan process as it was explained to me by the dealer sounded more like buying lunch on a road trip rather than a car but I did the research and to my surprise I confirmed that this was the case from TN's DMV. I bought the car on that assumption but there was a glitch when I got home and went to register it. The clerk presented me with a $7000 bill instead of the $800 it was supposed to be. Turns out she had no idea how it worked but for several long moments I stood dumbfounded at her window while she consulted with her supervisor. Eventually they decided I didn't owe TN the bulk of the taxes after all. I felt pretty stupid for buying a new Lotus out of state for about ten minutes but it all worked out.

The laws are pretty patchwork within a relatively broad range. My experience suggests even the DMV workers are unclear what the rules are in what you'd think should be a straightforward, every day transaction.
08-03-2017 05:10 AM
brgelise Maybe if they collected a few bucks, they could build there own wall using the labor already located behind bars. Good therapy looking back over the border wishing you'd never tried in the first place.
04-10-2017 07:23 PM
Whereswaldo Yup no tax in AZ, that was a shocker when I moved away.
12-03-2014 12:55 PM
jds62f
Quote:
Originally Posted by Nessal View Post
Here in CA. It's not called sales tax. It's called use tax.
Same in IL. If you buy from a private party there is a table that tells you what the use tax is. If you buy from a dealer the use tax just *happens to be* equivalent to the sales tax rate in your resident county
12-03-2014 12:31 PM
Nessal Here in CA. It's not called sales tax. It's called use tax.
12-03-2014 10:21 AM
Swic When going to register my car, I was mentally preparing myself for being hit with a huge tax, which would certainly just go on the credit card and force me to sit in the dark and eat ramen for the next few months. Lo and behold, there's a silver lining to living in a state where cranky old farts decide the elections. No private sales taxes in AZ!

All you coastal state schmucks trying to weasel your way out of Uncle Sam's dues need to pay unto Caesar what belongs to Caesar or move.
12-03-2014 12:16 AM
brightoncorgi
Quote:
Originally Posted by Glen View Post
I notice the OP has never even hinted at tax evasion, only a few nice people on this forum. Does it really take this many posts to debate the merits of criminal conduct? I like to think the vast majority of people who own and drive my favorite marque have the means and ethics to avoid the moral turpitude of tax evasion.

Glen
In MA, they stick you with book value, so there's no $100 cars from a sales tax perspective.
11-01-2014 07:57 AM
harlee As Tony states in an earlier post, the parking garage in Manhattan is owned by Kenny Mance and I think it's called the Jamaican garage.
07-25-2013 05:32 PM
Glen I notice the OP has never even hinted at tax evasion, only a few nice people on this forum. Does it really take this many posts to debate the merits of criminal conduct? I like to think the vast majority of people who own and drive my favorite marque have the means and ethics to avoid the moral turpitude of tax evasion.

Glen
07-25-2013 04:44 PM
Herb
Quote:
Originally Posted by EdHahn View Post
The Constitution doesn't say anything about that one way or another.

ed
Really??

Amendment XVI to the Constitution (Ratified February 3. 1913)

The Congress shall have the power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several states, and without regard to any census or enumeration.
08-28-2012 02:17 PM
Julian73 Texas is on transaction value - any trade in value. Texas is state 6.25% rate only, not local county/city surcharges of up to 2%
08-16-2012 07:26 PM
ee.engineer I thought about working the system, but in the end decided it wasn't worth it to save $1200 on my elise.
The tax charged on the car here in IL is way lower than the regular sales tax!!
08-16-2012 06:00 PM
pray4mojo My friend had his GTR "gifted" to him. $0 sales tax.
07-30-2012 09:11 AM
Hand_Banana Don't know about other states but CA does not check at all, not even in extreme cases. I had a buddy buy a BMW out of state for ~$50,000. Bill of sale said $5000. The car was even inspected at the DMV. He had a whole elaborate story about how it was damaged and he fixed it himself, blah blah blah.... he was in and out within an hour including the inspection and nobody even raised an eyebrow.

CA can't even get their budget straight. I doubt we have the resources to track down and prosecute everyone who is doing this.

Not advocating, just saying.
07-28-2012 03:24 AM
ee.engineer if i remember right, i think for believe for IL, if the car is under $15k, they use the list of car values to tax you, but if it is over $15k, they use your sale price
07-27-2012 06:21 PM
Broncs
Quote:
Originally Posted by metrocube View Post
You have to:
fraudulently state that you are an Oregon resident.
drive to Oregon every year to re-register your car.
wilfully ignore the law that says you must obtain a NY driver's license if you are a resident of NY.

the moment you attempt to register the car in NY, NY will ask for you to pay the difference of the sales tax NY wants to charge vs. the sales tax you paid in Oregon. Which means you're on the hook for the full NY sales tax. NYS DMV - Vehicle Registration and Certificate of Title
No you would only have to have it registered for 6 months then you can transfer it to another state.
07-27-2012 06:20 PM
Broncs
Quote:
Originally Posted by antinym View Post
There's no sales tax in Oregon. Get a mailbox or rental in Oregon. Get some bills re-directed there. Get a OR license. Buy car, register in OR, transfer to NY. BAM, you saved 2k. Maybe. I don't know if that works.

and as always, my opinions is worth what you paid for it.
I think that depends on where you are. I have had family members use my address in Montana to register cars (No sales tax) for 6 months then transfer it to the state they live in and not have to pay tax on them.
07-27-2012 12:56 PM
metrocube
Quote:
Originally Posted by antinym View Post
There's no sales tax in Oregon. Get a mailbox or rental in Oregon. Get some bills re-directed there. Get a OR license. Buy car, register in OR, transfer to NY. BAM, you saved 2k. Maybe. I don't know if that works..
You have to:
fraudulently state that you are an Oregon resident.
drive to Oregon every year to re-register your car.
wilfully ignore the law that says you must obtain a NY driver's license if you are a resident of NY.

the moment you attempt to register the car in NY, NY will ask for you to pay the difference of the sales tax NY wants to charge vs. the sales tax you paid in Oregon. Which means you're on the hook for the full NY sales tax. http://www.dmv.ny.gov/register.htm
07-27-2012 08:28 AM
Jack FFR1846 Every location has their own laws.

Massachusetts is very, very clear when you go to register:

First, they won't find Lotus in their car list. It's listed under "Vintage Cars".

Next, they WILL find a value in their system. The way Massachusetts values cars is going to be based on this, not what you paid unless that is more. In my case, a year ago, I paid $30k and they valued it at $29,700, so it was pretty accurate. Where it won't be accurate is if you have something that's salvaged or for restoration. They still use their value. I bought a 51 Ford pickup for $300 some years ago to restore. It was a 1 owner vehicle and had been taken off the road in 1963 to use only on the farm. They valued it at $3500 and that's what I had to pay tax on. I filed for an abatement with full pictures of the truck with all its rust, parts missing and need to replace every piece of glass on it. My abatement was rejected.

Ok, for the good news. If you buy a vehicle in Mass from a direct relative, you file a form (the seller does) and you pay zero tax. I bought my mom's car and this indeed worked. The loop hole is if your relative bought the car in a state with no sales tax like New Hampshire, you end up getting the car on the road without paying any sales tax. They don't care what you paid your relative for the car. I kidded with my mom that she should move to NH and buy a Lamborghini.
07-27-2012 07:07 AM
antinym There's no sales tax in Oregon. Get a mailbox or rental in Oregon. Get some bills re-directed there. Get a OR license. Buy car, register in OR, transfer to NY. BAM, you saved 2k. Maybe. I don't know if that works.

and as always, my opinions is worth what you paid for it.
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