Which states are most advantageous to purchase a car in to avoid state sales tax? I am in PA, so if I purchased a used NSX from a FL owner I would not pay any sales tax, correct?
Sales Tax
- Thread starter kgb_agent
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I guess I am a little confused as exactly what you are asking. Living in PA, if you puchased a car from Florida, would you pay sales tax in Florida....no, unless you registered the car in Florida. You will pay sales tax in the state that you register the car and has nothing to do with where you purchase the car, exept for transferring the title to your state. Sales tax is paid to the Dept. of Revenue and not the dealer, unless I am missing something here.
jlindy is correct.
In most states, sales tax is charged by the state where you register the car. And in most states, the DMV office has all the forms to fill out (and sometimes even Department of Revenue personnel located there) so that when you transfer the title to your state, you can pay the sales tax at the same time.
Most of the states have complete information about tax rates, forms to fill out, etc on the website, usually for the Department of Revenue.
Sometimes the sales tax paid by an individual is called a "use tax" rather than a sales tax.
In most states, sales tax is charged by the state where you register the car. And in most states, the DMV office has all the forms to fill out (and sometimes even Department of Revenue personnel located there) so that when you transfer the title to your state, you can pay the sales tax at the same time.
Most of the states have complete information about tax rates, forms to fill out, etc on the website, usually for the Department of Revenue.
Sometimes the sales tax paid by an individual is called a "use tax" rather than a sales tax.
P.S. To answer your original question...
Move to a state with no sales tax, like Oregon or New Hampshire, and then buy your car, and you will avoid state sales tax.
Move to a state with no sales tax, like Oregon or New Hampshire, and then buy your car, and you will avoid state sales tax.
Originally posted by kgb_agent:
Which states are most advantageous to purchase a car in to avoid state sales tax? I am in PA, so if I purchased a used NSX from a FL owner I would not pay any sales tax, correct?
NO but you will pay sales Tax in the State you register the vehicle in
That sucks. PA has a relatively high sales tax of 6%. If you travel to another state and purchase nearly any other item (a shirt, a microwave oven, or a newspaper) you pay the sales tax to the state that the merchant resides in. Oh, well thanks anyway...
[This message has been edited by kgb_agent (edited 24 February 2003).]
[This message has been edited by kgb_agent (edited 24 February 2003).]
I feel for you, our sales tax in San Francisco is 8.5%, luckily I dont live in SF, however my sales tax is still 8.25%
That's not particularly high. You can look at the range of sales taxes among the various states here. Note that many local jurisdictions add their own sales tax rates on top of state taxes, as shown in the table. Overall sales tax rates of 8.5 to 9 percent are not uncommon, particularly in some of the biggest cities where millions of people live, including New York City, Chicago, etc. And residents there have the sales tax on automobiles applied based on the rates where they live, including any local sales tax rates.
At 6 percent, you are luckier than many of us.
[This message has been edited by nsxtasy (edited 24 February 2003).]
Interestingly enough there is a loophole in the Sales Tax law on used vehicles purchased outside of California for use in CA. Actually CA doesn't charge "Sales Tax" on vehicles purchased out of state, they technically can't because there was not a purchase within CA. We have what is called a "Use Tax" on all vehicles purchased outside of CA for use within the state.
The loophole comes only to the "Use tax" provision. If you purchase a vehicle outside of CA and "Use" it outside of the state for more than 50% of the 1st 6 months it is exempted from the "use tax".
This means if for instance you buy a car in St. Louis and don't bring it into the state for at least 90 days, and can document this you can apply for an exemption from the state and not pay any tax on transfer.
I have personally done this with an expensive airplane, and know quite a few people who have accomplished this with various autos. I know one person who bought a 98 Jag XK8 and paid only $475 when he registered it here in CA.
Just goes to show you where there's a will there's a way! I HATE PAYING TAXES!
------------------
97 NSX-T Black/Tan (Bought in Atlanta)
00 Mercedes 430CLK (Cab) (Bought in St.Louis)
93 Cadillac Allante (Northstar) - For Sale
98 GMC Sierra
00 HD Dyna WideGlide
83 Cessna 303 (Crusader) (Bought in North Carolina)
[This message has been edited by Paul65K (edited 24 February 2003).]
The loophole comes only to the "Use tax" provision. If you purchase a vehicle outside of CA and "Use" it outside of the state for more than 50% of the 1st 6 months it is exempted from the "use tax".
This means if for instance you buy a car in St. Louis and don't bring it into the state for at least 90 days, and can document this you can apply for an exemption from the state and not pay any tax on transfer.
I have personally done this with an expensive airplane, and know quite a few people who have accomplished this with various autos. I know one person who bought a 98 Jag XK8 and paid only $475 when he registered it here in CA.
Just goes to show you where there's a will there's a way! I HATE PAYING TAXES!
------------------
97 NSX-T Black/Tan (Bought in Atlanta)
00 Mercedes 430CLK (Cab) (Bought in St.Louis)
93 Cadillac Allante (Northstar) - For Sale
98 GMC Sierra
00 HD Dyna WideGlide
83 Cessna 303 (Crusader) (Bought in North Carolina)
[This message has been edited by Paul65K (edited 24 February 2003).]
Laws do vary from state to state. Here are two more examples. We recently discovered that Hawaii residents don't pay use tax on cars bought out of state from individuals who do not sell cars for a living. Illinois charges use tax for purchases from a private individual but it is not the same percentage rate as sales tax on new cars bought from a dealer.
Do some research on your state's Department of Revenue website. Information about such provisions is usually well described there.
Do some research on your state's Department of Revenue website. Information about such provisions is usually well described there.
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