How does this work? If I'm in Michigan and purchase a car in New York, how do I drive it back to Michigan. I won't have a registration, just a bill of sale. Do I get a temporary tag from the selling dealer? What about sales tax? Do I pay sales tax in New York or do I pay them in Michigan when I get back home?

 

Dealer gives you a thirty day temporary, pay sales tax ONLY in your home state.

 

I paid sales tax in Florida and the dealer provided a voucher for the state of Texas where I did not have to pay any sales tax ( same % tax rate). Most states have reciprocal agreements about this, or so I was told by the dealer in Florida,I had no trouble at all. But check it out for yourself.