Purchasing from a state with no sales tax
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Purchasing from a state with no sales tax
Curious if anyone has purchased their Porsche from one of the 5 states that has no sales tax and had the car shipped to you. In Illinois, I would have to pay a 7% sales tax. On a $120k purchase, we are talking about $8400. If I title the car from an out of state purchase, I would only have to pay a flat $1500 fee for the IL tax, plus shipping cost of the car. Seems like a great opportunity to save some money. Any thoughts?
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Joined: Jan 2013
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From: Chicagoland Area
That's not how it works in Illinois. The flat $1,500 fee is only if you purchase private party with a value equal to or exceeding $30,000. If you buy a NEW 911 from a dealership out of state, and you truely live in Chicago, your sales tax will be 8.25% when you properly register your car at your true residence.
The dealership, out of state (any state), will not collect sales tax. That's your responsibility when you bring your car home to Illinois and register in your taxing county.
I think Cook and DuPage county have an 8.25% new car sales tax. But, if you had a ligitimate address in parts of Will county, it's only 7.25%. This would save you about $1,200 on your proposed purchase. Places in and around Springfield are even lower (6%ish??) like near Isringhausen Porsche.
The dealership, out of state (any state), will not collect sales tax. That's your responsibility when you bring your car home to Illinois and register in your taxing county.
I think Cook and DuPage county have an 8.25% new car sales tax. But, if you had a ligitimate address in parts of Will county, it's only 7.25%. This would save you about $1,200 on your proposed purchase. Places in and around Springfield are even lower (6%ish??) like near Isringhausen Porsche.
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Joined: Sep 2013
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No way to avoid paying in Mass either, when you register the car, you pay the tax. There are businesses set up in NH, MT, etc. that register the cars for your local "business" and you pay yearly for a PO Box type a deal, but there's a lot of gray area stuff and flat out illegal stuff involved if not done properly. YMMV
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I agree about the Illinois tax, but it's a bit for complicated to what was eluded to above. The higher taxes in different areas are due to the different counties having a different rate. However, your out of state dealer will probably only charge you the base tax rate(6.25%). Cook (crook) county will get you for 2% plus another 1% for the city of Chicago. You are responsible 
for the paying your counties surcharge when you bring the car into the state, which amounts to 3-4k on a 991.
for the paying your counties surcharge when you bring the car into the state, which amounts to 3-4k on a 991.
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From: Chicagoland Area
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Three Wheelin'
Joined: May 2012
Posts: 1,343
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From: Pennsylvania
It's my understanding that if you form a Montana LLC, the LLC can purchase the car and have it registered in Montana free of sales tax. The car may be then driven and "reside" elsewhere.
http://revenue.mt.gov/forindividuals.../salestax.mcpx
http://www.rv-dreams.com/montana-llcs.html
Although I purchased my car in Delaware (no tax state), I paid sales tax to Pennsylvania as the car is registered here.
Frankly, the small amount of tax (6% one time) wasn't worth the possibility of ever having to deal with the drones employed by the Pennsylvania Department of Revenue.
If you are interested contact an a Montana lawyer.
http://revenue.mt.gov/forindividuals.../salestax.mcpx
http://www.rv-dreams.com/montana-llcs.html
Although I purchased my car in Delaware (no tax state), I paid sales tax to Pennsylvania as the car is registered here.
Frankly, the small amount of tax (6% one time) wasn't worth the possibility of ever having to deal with the drones employed by the Pennsylvania Department of Revenue.
If you are interested contact an a Montana lawyer.
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Joined: Jul 2013
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From: Saratoga Springs, NY
[QUOTE=rnl;10779404]It's my understanding that if you form a Montana LLC, the LLC can purchase the car and have it registered in Montana free of sales tax. The car may be then driven and "reside" elsewhere.
http://revenue.mt.gov/forindividuals.../salestax.mcpx
http://www.rv-dreams.com/montana-llcs.html
Although I purchased my car in Delaware (no tax state), I paid sales tax to Pennsylvania as the car is registered here.
Frankly, the small amount of tax (6% one time) wasn't worth the possibility of ever having to deal with the drones employed by the Pennsylvania Department of Revenue.
In New York State it's called use tax and you cannot escape payment if you reside here.
http://revenue.mt.gov/forindividuals.../salestax.mcpx
http://www.rv-dreams.com/montana-llcs.html
Although I purchased my car in Delaware (no tax state), I paid sales tax to Pennsylvania as the car is registered here.
Frankly, the small amount of tax (6% one time) wasn't worth the possibility of ever having to deal with the drones employed by the Pennsylvania Department of Revenue.
In New York State it's called use tax and you cannot escape payment if you reside here.
Three Wheelin'
Joined: May 2012
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From: Pennsylvania
It's called a use tax wherever sales tax is imposed. The Montana gimmick appears to be that the car is never registered in ones home state. Again, I don't believe it's worth the potential hassle.
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Instructor
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Not true. Bought the car out of state from the east coast and the dealer paid the tax and registered the car for me in Illinois.
Instructor
Joined: Mar 2013
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From: Chicago, Taiwan
I bought my car from a dealer in Texas and shipped here in Chicago. The bank that financed my loan collected the tax for 9.5% for cook county. But when I went to the DMV to register the car, they only calculated 7.5% (I am not sure why). So I saved a little bit. The bank sent a check to DMV with the title and all other documents. I went there to registered it. Then DMV sent the docs back to the bank. The saved money, bank applied it towards the principle.
Unless you register the car in one of those 5 states, there is no way to avoid it.
Unless you register the car in one of those 5 states, there is no way to avoid it.
Burning Brakes
Joined: Oct 2006
Posts: 880
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From: NW Arkansas
I bought a car in Louisiana some years back. Dealer told me they would collect my Texas state sales tax and send in registration....for a fee....or I could just do it myself which I did. They sent the paperwork to my county tax assessor/collector, I got a postcard from them a few weeks later telling me to come in and complete registration and pay the tax.
The Montana thing must work on some level, out of the 24 or so McLaren F1's in the US, there are at least three that when seen have Montana license plates, but none of the owners live there. I can see it being desirable on a $8M+ car, not so much on our's.
The Montana thing must work on some level, out of the 24 or so McLaren F1's in the US, there are at least three that when seen have Montana license plates, but none of the owners live there. I can see it being desirable on a $8M+ car, not so much on our's.