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Folks, I need some input on out of state purchase.
I am a resident of Florida and will be registering the car in Florida but I purchased my Cayenne S from my dealer in Massachusetts. ( I had previous relations and got allocation spot immediately for Cayenne S). How does the registration / taxes work ?.
Since I will be physically picking up the vehicle in MA and driving to Florida, Can I register the car in Florida ( and get License Plates) while vehicle is still in MA and then mount the License plates in MA and drive back to Florida?
Will I be paying the FL tax or MA tax ?
Appreciate input from folks who have gone through out of state purchase.
I am a resident of Florida and will be registering the car in Florida but I purchased my Cayenne S from my dealer in Massachusetts. How does the registration / taxes work?
Since I will be physically picking up the vehicle in MA and driving to Florida, Can I register the car in Florida ( and get License Plates) while vehicle is still in MA and then mount the License plates in MA and drive back to Florida?
Will I be paying the FL tax or MA tax ?
BLUF - Your choice, depending how you work it . . .
States may differ in vehicle tax law, and laws change over time. I’ve purchased several vehicles out-of-state and circumstance dictated which State got paid.
Usually, as LDT stated, you pay tax to the state of registration. Virginia has a provision that doesn’t double-tax. Tax paid to another State, regardless of the other state’s tax rate, suffices as tax payment in full to the State of Virginia. This exempted me from paying 4.15% Virginia tax by paying only 2% to the State of Alabama — for the win!
Other states such as Massachusetts, charge you sales tax even if you drive away to register in another state. Exception: If an Interstate carrier delivers the vehicle outside Massachusetts, no tax due. From Massachusetts Department of Revenue: https://www.mass.gov/regulations/830...and-deliveries
“If the purchaser or the purchaser's agent takes possession of the property within Massachusetts, whether or not for redelivery or use outside Massachusetts, the sale is taxable”
This applied to me, coincidently, on my 993 purchase in Florida for registration in Virginia. At that time, Virginia did not have tax reciprocity with Florida. I would have had to pay 6% to Florida and 4.15% to Virginia. The dealer worked with me: He said he had to collect tax unless he “saw the vehicle depart his lot on a trailer bound for Virginia”. He also said, with a wink, “I won’t be following it to see where it goes after it leaves my lot.” He then handed me a business card and said call this guy. We signed the tax-exempt forms and loaded the 993 on the trailer, drove down the street to a shopping center, and off-loaded it. I proceeded to drive it home and pay taxes to Virginia — for the win!
Check with the Massachusetts dealer to see how strictly they interpret the “interstate carrier” definition. You might arrange a similar “transport” as I did.
“A credit against any Florida sales and use tax or surtax due on a motor vehicle is allowed to any purchaser who provides documentation that a like tax has been lawfully imposed and paid to another state, territory of the United States, or the District of Columbia.
Example: If you purchase a motor vehicle in a state that has a sales tax rate of 4% you must pay an additional 2%, plus any applicable discretionary sales surtax, when the motor vehicle is brought into Florida and registered, licensed, or titled in Florida.”
The bad news: Massachusetts tax rate is 6.25% vs Florida’s 6.0% rate. You’ll pay an extra 0.25% unless you want to transport the vehicle via carrier to Florida.
BLUF - Your choice, depending how you work it . . .
States may differ in vehicle tax law, and laws change over time. I’ve purchased several vehicles out-of-state and circumstance dictated which State got paid.
Usually, as LDT stated, you pay tax to the state of registration. Virginia has a provision that doesn’t double-tax. Tax paid to another State, regardless of the other state’s tax rate, suffices as tax payment in full to the State of Virginia. This exempted me from paying 4.15% Virginia tax by paying only 2% to the State of Alabama — for the win!
Other states such as Massachusetts, charge you sales tax even if you drive away to register in another state. Exception: If an Interstate carrier delivers the vehicle outside Massachusetts, no tax due. From Massachusetts Department of Revenue: https://www.mass.gov/regulations/830...and-deliveries
“If the purchaser or the purchaser's agent takes possession of the property within Massachusetts, whether or not for redelivery or use outside Massachusetts, the sale is taxable”
This applied to me, coincidently, on my 993 purchase in Florida for registration in Virginia. At that time, Virginia did not have tax reciprocity with Florida. I would have had to pay 6% to Florida and 4.15% to Virginia. The dealer worked with me: He said he had to collect tax unless he “saw the vehicle depart his lot on a trailer bound for Virginia”. He also said, with a wink, “I won’t be following it to see where it goes after it leaves my lot.” He then handed me a business card and said call this guy. We signed the tax-exempt forms and loaded the 993 on the trailer, drove down the street to a shopping center, and off-loaded it. I proceeded to drive it home and pay taxes to Virginia — for the win!
Check with the Massachusetts dealer to see how strictly they interpret the “interstate carrier” definition. You might arrange a similar “transport” as I did.
“A credit against any Florida sales and use tax or surtax due on a motor vehicle is allowed to any purchaser who provides documentation that a like tax has been lawfully imposed and paid to another state, territory of the United States, or the District of Columbia.
Example: If you purchase a motor vehicle in a state that has a sales tax rate of 4% you must pay an additional 2%, plus any applicable discretionary sales surtax, when the motor vehicle is brought into Florida and registered, licensed, or titled in Florida.”
The bad news: Massachusetts tax rate is 6.25% vs Florida’s 6.0% rate. You’ll pay an extra 0.25% unless you want to transport the vehicle via carrier to Florida.
Thank you Schnave.... Truly grateful for a very thorough response.
One more thing. The temporary tag is a sticky wicket. Unlike Virginia, Florida doesn’t seem to issue temporary tags for vehicles purchased out of state. Massachusetts issues temporary tags for vehicles purchased and driven to another state for registration. However, in addition to the 6.25% sales tax, you’ll have to pay at least one month’s property tax, which is very expensive. If the temporary tag’s valid dates span two months, say from July 29th to August 4th, you’ll owe two months property tax for a one week plate. Ouch! https://www.mass.gov/doc/non-residen...sheet/download
For a new car, the rate is 2.5% of 90% of the vehicle’s MSRP. For a 100K vehicle, that’s an extra $187.50 per month, or $375 if the temporary plate valid dates span two months, on top of the $6,250 sales tax. That’s a pretty hefty toll for driving a few miles from the dealer to the state border. Small wonder people are fleeing the Northeast for Florida! https://www.mass.gov/guides/motor-vehicle-excise
That was the same situation when I bought my 993 in Florida. Just between you and me, I brought a current Virginia plate from my other vehicle and used it on my two-day drive home from the shopping center parking lot to Virginia. Although difficult, I kept my speed down to avoid provoking a traffic stop and the inevitably awkward conversation about my plates.
You may wish to check with your dealer to find out more about interstate carriers (or down the street carriers), temporary tags, and excise tax.
Mine is finally on its way ! Sat at the port for a couple of weeks which based on other threads not too bad... I was able to narrow it down to two ships potentially it would be loaded on... the first one changed directions, the second is spot on. You can use vesselfinder.com to look at the ships and routes. Can't wait now...
Glad to see your vehicle got on the ship. Mine has been sitting at port since June 20th and the TYD showed July 14th. as the day when it will get shipped out but I have not received any update yet.
If I may ask, when did your vehicle got to the German port?. This will give me some rough idea.
Thanks... Mine was finished 6/24 and got to the port on 6/27... sat until 7/11 so I guess it depends where you entry port is... I did a reverse search working backwards and was able to figure out one of two ships it would be on. When it missed the first, they said it would ist and not arrive till mid August, then all of sudden the dates changed when it left the port. Ordered the regular Cayenne Coupe.
I'm 330 km (205 miles) from the factory where they make Cayennes. I've ordered mine in the first week after it became officially available. The estimation for delivery is end of August. Base trim.
Every dealer can do an out of state registration. Do not let them register the car in Mass. Register in Florida, pay the tax and they will get you the plates too. Much easier. I bought a car in NJ that I shipped to Florida and it was so much easier to do it that way. Other choice if you are picking it up is to NOT register it in Mass and ask for a temporary transportation plate that let's you move the car. It's an interstate temp tag. Then register in Florida... they should give you a "certificate of origin" and not a "title" document. Once it is titled you will be paying more and possibly twice. my $0.02...
Every dealer can do an out of state registration. Do not let them register the car in Mass. Register in Florida, pay the tax and they will get you the plates too. Much easier. I bought a car in NJ that I shipped to Florida and it was so much easier to do it that way. Other choice if you are picking it up is to NOT register it in Mass and ask for a temporary transportation plate that let's you move the car. It's an interstate temp tag. Then register in Florida... they should give you a "certificate of origin" and not a "title" document. Once it is titled you will be paying more and possibly twice. my $0.02...
thank you so much . I am well prepared now . Truly grateful for your help .
07-12-2023, 08:46 PM
