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-   -   Out-of-State car purchasers pay tax twice?! (http://www.the370z.com/nissan-370z-pricing-ordering-discussions/28487-out-state-car-purchasers-pay-tax-twice.html)

SoCal 370Z 12-01-2010 11:56 AM

Quote:

Originally Posted by BeachZTT (Post 830394)
But just buy it from Lou and have it shipped to you. You will get a better deal anyway. :)

:tup: :iagree: :tup:

EValentin1 12-01-2010 09:59 PM

Quote:

Originally Posted by Mike (Post 829677)
Just saw this post from a california dealer on the corvette forum, having a sale on ZR1s. This was at the bottom:

Out Of State Buyers pay no fees. If you would like to fly in and drive the car home, you will have to pay 9.25% California sales tax. You can have the car shipped from our dealership to your state and you won't have to pay the 9.25% California sales tax. You will be responsible for shipping, registering, and paying the sales tax in your own state

I seem to recall that when I was in the military and lived in CA but was a florida resident, anytime I bought a car, I paid CA sales tax, and then FL would waive the difference between the two when registering, but it was always zero because CA taxes are higher then FL.

I just went through something similar. Big pain in the *** but it all worked out. So I bought my Z in New Jersey. While at the dealer I was getting ready to sign and noticed they were charging 9% sales tax....this set off alarms in my head. When i asked it was "to cover oursleves in case you register the car in a state that has a higher tax and we dont want to get stuck paying the difference." I still questioned them because i opted for the dealer to register the car themselves in Virginia (where i lived at the time. Im military so i move quite a bit). Probably would have been easier to just register the car myself and save me the hassle. Anyway, they ended up sending all the info to the Virginia DMV (tax in VA is 3%). After Virginia reviewed all the paperwork and sent the plates to the dealer, they also included information about the VA tax only being 3%. Long story short, the dealer reimbursed me 6% tax on the purchase. Confusing I know...but like i said it all worked out in the end! If you have any more questions feel free to shoot me a PM.

Super Tanooki 12-02-2010 07:31 PM

Thanks for all you guys' help.

This...

Quote:

Originally Posted by Mike (Post 829677)
Just saw this post from a california dealer on the corvette forum, having a sale on ZR1s. This was at the bottom:

Out Of State Buyers pay no fees. If you would like to fly in and drive the car home, you will have to pay 9.25% California sales tax. You can have the car shipped from our dealership to your state and you won't have to pay the 9.25% California sales tax. You will be responsible for shipping, registering, and paying the sales tax in your own state

I seem to recall that when I was in the military and lived in CA but was a florida resident, anytime I bought a car, I paid CA sales tax, and then FL would waive the difference between the two when registering, but it was always zero because CA taxes are higher then FL.

...and this...

Quote:

Originally Posted by ClemsonWill (Post 830037)
Mike beat me too it. California sales tax is high. You might be better off shipping it so you only have to pay your state sales tax. (South Carolina max is $300 for automobiles :ughdance:) Property taxes will always be paid in your home state.

...make perfect sense - basically, I buy the car in Cali, I'll pay Cali tax, which is higher than the tax in my state, Nevada. And in that case I might be better off paying shipping (or just waiting to buy one in Nevada) so that i only pay NV tax. Right?

But then this...

Quote:

Originally Posted by FuszNissan (Post 830187)
Mike is correct, you pay tax where you register the car.

...seems like a conflicting statement. I'll be registering the car in Vegas, because that's where I live. Sooo... I pay Nevada tax?

And this...

Quote:

Originally Posted by EValentin1 (Post 831432)
After Virginia reviewed all the paperwork and sent the plates to the dealer, they also included information about the VA tax only being 3%. Long story short, the dealer reimbursed me 6% tax on the purchase. Confusing I know...but like i said it all worked out in the end! If you have any more questions feel free to shoot me a PM.

...says to me the dealer will want to charge me Cali tax, but so long as I point out that the car will be registered in Nevada, they'll charge me NV tax (or reimburse the difference after the sale goes through).

Sorry, am I being a dumbass? It doesn't seem clear.

Oh, and don't worry Josh - I won't be taking any chances with insurance for my precious Z. :tup:

EValentin1 12-02-2010 07:43 PM

Quote:

Originally Posted by Super Tanooki (Post 833386)
Thanks for all you guys' help.


...says to me the dealer will want to charge me Cali tax, but so long as I point out that the car will be registered in Nevada, they'll charge me NV tax (or reimburse the difference after the sale goes through).

Sorry, am I being a dumbass? It doesn't seem clear.

Correct. You should get reimbursed if the tax in NV is less than the tax they charge you after the registration process is complete.

Mike 12-02-2010 08:08 PM

no, with california and nevada, its basically if you buy it in california and take delivery in california, you pay california sales tax. If nevada sales tax is lower, you will pay no additional tax when you register it, but you won't get a refund either. If nevada tax is higher, you will pay the additional tax that is the difference between what you already paid and what you would have paid in nevada.

EValentin1 12-02-2010 08:29 PM

Quote:

Originally Posted by Mike (Post 833423)
no, with california and nevada, its basically if you buy it in california and take delivery in california, you pay california sales tax. If nevada sales tax is lower, you will pay no additional tax when you register it, but you won't get a refund either. If nevada tax is higher, you will pay the additional tax that is the difference between what you already paid and what you would have paid in nevada.

hmmm that doesnt seem right. ive talked to many friends who have bought cars in different states (not necessairly NJ and registered in VA) and they have been reimbursed if the tax where they register the car is lower... did a quick search and found some info from NV.

"Buying A Vehicle - Out-of-State Dealer Sales
Out-of-state vehicle dealers must comply with their own state's laws regarding sales to non-residents. Ask about a movement permit and for details on how the vehicle will be titled before you buy. Be certain to read and understand the sales or lease contract before signing.
An out-of-state dealer may or may not collect sales tax. The Nevada DMV will verify whatever tax was paid and charge the buyer any difference between that amount and what would have been due in Nevada. See the Nevada Department of Taxation Sales and Use Tax Publications for current tax rates. Rates vary by county.


You must register the vehicle at a DMV Full Service Office before the expiration date of any movement permit issued or 30 days maximum. Please bring all documents provided by the dealer. You must have:

Invoice or Bill of Sale, and one of the following:
Title
Manufacturer's Certificate of Origin
Security Agreement
Lease Agreement
Purchase Order
Nevada Evidence of Insurance Card
Nevada Emissions Vehicle Inspection Report if needed
VIN Inspection
Application for Vehicle Registration (VP-222)"


Straight from NV DMV site.

I guess im interpreting this as they can possibly reimburse you if the tax is lower than what they charge you in CA...?

m4a1mustang 12-02-2010 08:36 PM

I'm late to the party, but I bought my Mustang from FuszNissan in St. Louis. I paid sales tax on the car when I registered it in my home state (Virginia) and that was it.

Just make sure you check your state laws to see how long you're legally allowed to drive the car in state before you register it. In VA I had 30 days, which I think is the norm.

Super Tanooki 12-02-2010 10:59 PM

Quote:

Originally Posted by EValentin1 (Post 833454)
hmmm that doesnt seem right. ive talked to many friends who have bought cars in different states (not necessairly NJ and registered in VA) and they have been reimbursed if the tax where they register the car is lower... did a quick search and found some info from NV.

"Buying A Vehicle - Out-of-State Dealer Sales
Out-of-state vehicle dealers must comply with their own state's laws regarding sales to non-residents. Ask about a movement permit and for details on how the vehicle will be titled before you buy. Be certain to read and understand the sales or lease contract before signing.
An out-of-state dealer may or may not collect sales tax. The Nevada DMV will verify whatever tax was paid and charge the buyer any difference between that amount and what would have been due in Nevada. See the Nevada Department of Taxation Sales and Use Tax Publications for current tax rates. Rates vary by county.


You must register the vehicle at a DMV Full Service Office before the expiration date of any movement permit issued or 30 days maximum. Please bring all documents provided by the dealer. You must have:

Invoice or Bill of Sale, and one of the following:
Title
Manufacturer's Certificate of Origin
Security Agreement
Lease Agreement
Purchase Order
Nevada Evidence of Insurance Card
Nevada Emissions Vehicle Inspection Report if needed
VIN Inspection
Application for Vehicle Registration (VP-222)"


Straight from NV DMV site.

I guess im interpreting this as they can possibly reimburse you if the tax is lower than what they charge you in CA...?

Yeah I called and spoke to another LA-based dealership and this is pretty much what they told me. This sounds about right - cool. Thanks guys.:tiphat:

At least the good news still stands - I DON'T have to pay tax twice.

Me: 1 - Father-in-law: 0.

(Actually he turned out to be right with his claim that vitamin C evaporates from orange juice if left uncovered, which sounded utterly ridiculous to me, so I guess it's 1-1). :tup:

definitionxmk 12-03-2010 02:41 PM

hmmm this is all quite interesting as I will be going to cali and buying my car... then having it shipped to hawaii!

m4a1mustang 12-03-2010 02:53 PM

Quote:

Originally Posted by SoCal 370Z (Post 830420)
:tup: :iagree: :tup:

But if you go to Lou to pick up the car he will buy you breakfast. :tup:

NitroZ 06-02-2016 11:06 PM

Out of State Purchase , California/Nevada
 
I just did this. The law now works likes this. You pay the state tax for where you buy the vehicle. If the tax is the same or higher than Nevada, there is no issue. But, if where I buy the car is less than Nevada, I have to pay the difference. In my case, Cali taxes are higher than Nevada, so I owed nothing. The deal I got on the car made of for the extra 1.75% extra I paid in taxes. Plus, I got them to reimburse me for the plane ticket to fly from Reno to Orange County. All in all I am super happy with everything. :rofl2:

barncobob 06-13-2016 11:43 AM

I live in CA. bought a car in IL., paid 6.2% IL tax, registered it in calif. and had to pay difference in state taxes.belive CA ends up with the entire amount, IL. forwards it.

ssmoked 07-16-2016 02:08 AM

The term to look for is "reciprocal tax", where two different states could have completely different rules. Best is to call DMV and not rely on dealer, since all they want to do is complete the deal as fast and possible.

Spooler 07-17-2016 05:01 PM

I just bought a car in Illinois and had it shipped to me in Ga. When I took my paperwork to the tag office, I paid the tax on the car then. After the tax was paid, I was able to register the car in Ga. Since the car was used, I was taxed on the Ga value, not what I paid.

ssmoked 07-17-2016 11:43 PM

Quote:

Originally Posted by Spooler (Post 3518578)
I just bought a car in Illinois and had it shipped to me in Ga. When I took my paperwork to the tag office, I paid the tax on the car then. After the tax was paid, I was able to register the car in Ga. Since the car was used, I was taxed on the Ga value, not what I paid.

So... Did you come out ahead :ugh2:


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