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Originally Posted by TorpedoZone
Is this true for all states? (Sorry if this is a dumb question).
If you buy a car out of state, you aren't required to pay sales tax on it? Do you ever have to pay tax in your home state for an out of state car purchase?
Thanks,
Joe
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That's true of everything subject to Sales Tax. My wife and I do alot of travelling and we often shop for clothes, antiques, even some big ticket items when we're away.
We don't pay sales tax since we're not residents, but there's a catch. We cannot take the items with us, we must present out-of-state ID, and have the items shipped to our home out of state. Saves us a bundle.
My state allows up to $760/person/yr. on internet and out-of-state purchases tax free. You are supposed to report any purchases exceeding that total yearly amount on your Tax form.
With a car, it's hard to get around, because once in your home state, they valuate the car at the DMV and charge Sales Tax accordingly.
Funny though, many years ago I bought a Ferrari out of state. When I went to the DMV, the clerk valuated the car, but then winked at me and asked if it needed any work. I said well, there were some blemishes in the paint, but to get them out, a total repaint would be needed - that you don't
touch-up a Ferrari. He responded with "
well that's what? $10k-$15k for that type of paintjob?" I said "
yea, probably, if not more" even though I had no intention of repainting it. So, he knocked off $15k in the value and charged me Sales Tax and Registration accordingly. Musta been a Car Nut. Hope we don't have any State or IRS agents as members here.
