Lodi

Should I be charged sales tax if I am purchasing a vehicle out of state? I live in Atlanta and I am purchasing my GT3 from a dealer in NY. I have paid a deposit and am about to pay off the remaining balance. The dealer has sales tax figured in on my purchase agreement. The salesman says that I am being charged GA sales tax which sounds odd to me. Would a NY dealer be collecting sales tax for GA? What is going to happen when I go to register the vehicle? I figured I would have to pay tax at this time. Andrea is trying to have the vehicle drop shipped to my local dealer since it is still in port so hopefully they can help me with the logistics. Any ideas?

Thanks in advance for your help.

Dave

LateBrake911

Thats common. They will probably register it for you. Just make sure they do it on time, Im sure NY like IL is hurting for $, and will try and charge you a $1,200 late fee.

Cyrek

I go through this 2-3 times a year and the only 2 states that really give me problems are Cali and Texas, and only on brand new cars. There are several ways to deal with this. Usually if I put up enough stink they concede anyway.

doubleurx

The dealer is doing it correctly. They are probably not registering it for you, but simply collecting the taxes for GA DMV.

Cherryblock

Each state has a list of other states that have a tax reciprocity agreement. If you check the DMV online site in the state purchased you will be able to find out quickly. My 2 cents, I've bought many cars from out of state and if possible I deal with those that do not have reciprocity as I find it cumbersome when you register the vehicle in your home state.

rijowysock

this is based on florida, but most of it still applies.

http://dor.myflorida.com/dor/tips/tip12a01-01.html

usually u pay out of state tax, and when u get back you pay the diff if yours is more. you dont get a refund if theirs is more.

rijowysock

in your case, they are correct, they take your georgia tax.... then when you go to dmv your paperwork shows tax accepted and amount.. this will be exactly what georgia would have charged you otherwise so the dmv person will calc the same number and send you on your way.


both georgia and new york have 4% so its the same thing either way, some states suck.. if u buy a car in virginia and take delivery in virginia.. you pay virginia tax, and then it doesn't follow you to your home state so you would have to pay georgia tax too... if you got it shipped.. u would only pay georgia tax.

Maverick787

That is correct NY will send GA the taxes. The part that sucks you will not qualify for the new avalorum law exempting you from the annual registration fee because the car has to be a GA sale. GA taxes are 6 to 7% on sales and you will have to make up the difference from under collection. Double check your with your local county.

Lodi

Thanks everyone! Makes sense now. I did not realize the states had tax reciprocity.

Maverick787, I think I'm ok on the new ad valorem tax. According to the Fulton county tax commissioner's website, this is a onetime tax of 6.75% imposed on the fair market value of the vehicle at the time of registration (not purchase). Still sucks. Makes me want to open a business in MT! :-)

Now all I need is for a certain GT3 to get its new heart...scheduled for surgery the week of July 21st. Hopefully Andrea can work her magic and get it shipped to Hennessy for delivery. We'll see.

Thanks!

Dave

Maverick787

Good luck! Yes states have an agreement. Funny I purchased an expensive watch in CA, and they saw my out of state license so they didn't charge me the tax. It was listed as an out of state sale, and it was my responsibility to inform my home state "hint hint". They mailed my watch case to my home to legitimize the sale. Yes the package was empty. Agree on MT!

Lodi

Thank You! The out of state thing is good when it happens. Maybe I can get the dealer to ship me the box for the GT3 and I'll just drive it home! :-)

az audi

This is how it works in AZ. The registration on the car is the issue. If the car is being titled for the first time, or is titled to a dealer (in state or out of state), you have to prove to the DMV that sales tax was paid. If not, they charge you the federal and county portion of the tax and then are kind enough to notify the city the car is registrpered in and they send a bill for the city portion. AZ is very aggressive in making sure sales (use) tax is paid on vehicles. They have prosecuted some they could prove were intentionally trying to avoid taxes being bought out of state and brought in without paying taxes.

If someone is trying to be creative in AZ, be extremely careful.

mwar99

Personally I would tell them I would pay it when I register the car. There is no need for a dealership with no ties to the state you are registering in to collect the money. I would rather control it and handle it myself. When I picked up my Corvette at the Vette Museum and bought through a dealer in MI the dealership sent me the stuff I needed to register the car and I paid the tax when I registered with NJ DMV. Less confusion. Just my opinion.

Cyrek

[QUOTE=az audi;11477641]This is how it works in AZ. The registration on the car is the issue. If the car is being titled for the first time, or is titled to a dealer (in state or out of state), you have to prove to the DMV that sales tax was paid. If not, they charge you the federal and county portion of the tax and then are kind enough to notify the city the car is registrpered in and they send a bill for the city portion. AZ is very aggressive in making sure sales (use) tax is paid on vehicles. They have prosecuted some they could prove were intentionally trying to avoid taxes being bought out of state and brought in without paying taxes.

I totally believe this and I should point out I'm titling in Arkansas and it's inexpensive and I actively use my trade credits when purchasing new cars. However I have purchased 2 cars in AZ where I insisted that they not collect or I walk. So......these dealers in Arizona just put the car in my name on an Arizona title no joke, and when I turned the paperwork into my state they charged no tax. Twice this happened and these are big AZ dealers. I do this to preserve my tax credits, because I'm individually selling vehicles that out of state dealers can't consider or apply to the paperwork they are filling out. My state does not issue refunds. I'm an honest person and have no intention on deceiving state tax collectors. In my opinion if you are paying cash for a car and have every honest intention of registering your vehicle in your home state under their guidelines, you should be able to purchase any car where or how you want.


..........but the rules are the rules

nash

I've bought a few cars out of state - in a couple cases, the dealer charged me zero tax and I just paid my TX tax cash when I registered the vehicle here (there's a requirement to do so within 30 days). In at least one other case, the dealer charged me the correct tax rate and forwarded it on to my local tax office, essentially handling the registration for me.

I certainly wouldn't want to go through a hassle of paying tax to the 'other' state and then getting a refund or a refund of the delta, etc. Either have their title person handle it for you (if it's a Porsche or other high end dealer they should be more than accustomed to this), or take it upon yourself to pay the tax when you get home. I think I remember one dealer saying it was a requirement for tax to be paid before releasing the vehicle, but they were fine with it being Texas tax rather than their own tax (this was Connecticut).

Also it never seemed to matter whether I was picking the car up/shipping it back/driving it there first/etc.