I was wondering how the sales tax would work for buying a car out-of-state. Do you pay the sales tax in your home state or the purchasing state. Example, if I lived in New Hampshire, 0% sales tax, but there is no MINI dealer could I buy one in Boston without having to pay the taxes?

thanks

Amit

 

Here is how it worked in NC, where I live, when I purchased mine.

I bought in SC paid no sales tax, but when I registered the car in NC, once the paperwork showed up; I paid tax to the fine folks at DMV as part of the licensing process.

Some states will charge sales tax for out of state buyers and then either transfer that amount to the owner's state or the owners state will give the buyer a credit for the taxes paid out of state. Makes sense??

 

Same here, bought mine in Illinois, paid the taxes in Michigan, it is a better deal here at 6% anyway.

 

check with the state dmv. i know indiana is different than missouri or illinois and tennessee is different also.

 

Ok deeper question. Let me explain my dilemma: I am originaly from Indiana but I now live in Montreal Canada. My first MINI was from Indiana and I drove it around up here without importing until I sold it this last summer. My plan was to buy another car up here instead of paying the duties and taxes. Well I went in last week to put in the order and the price came out to $41,000 Canadian including taxes (15% here) that equates to US$ 33,300!. The exchange rate has changed drastically over the last couple of years but the prices here have not changed. An equally specced US MINI would be US$ 25,000 (with Indiana 5% sales tax) or CN$ 30,800 Big difference. The taxes and duties for importing the car into canada are CN$ 4,000. What I was thinking of doing is buying the car at the same dealer in Indiana where I would most likely get a discount since our family has bought numerous cars over the years and then import it in. My question is, if I do this do I have to pay the sales tax in Indiana, or can I save this expense as well? I would not register it in Indiana at all, buy it, and drive it across with the dealer plates. But how does the titling of the car work? Do I not get the title until I pay the BMV fees? Or can I first title it here in Montreal. Any insights would be appreciated. If I can do it the no tax route then i'd save roughly CN$ 8,500 this way! Otherwise I'll try to figure some way to title it in New Hampshire where there is 0% tax.

cheers,

Amit

 

I'm not sure how it works in Indiana, but I purchased my MCS from Mini of the Hamptons in New York, and for $124 they get what are called "Transportation plates" from New York State, good for 30 days to take the car to another state. I paid no other tax or fees to New York. When I registered the car in Virginia, I paid about $750 in taxes to register it.

 

I know how it work in Indiana!

Indiana just changed it's sales tax law so that dealers must collect Indiana Sales tax on every deal. Which is 6%.

Now, if you live in a state with a higher tax rate- you will have to pay the difference once you plate the car.

If you live in a state with No sales tax, or a lower rate- you still have to pay 6%. No credits.

Motor On!

Carissa

 

As for how you do it this is what I know. If you buy a car in IN you have to pay the now 6% sales tax to IN. But they now give you an ST108 form. Which means that you turn it into the BMV in your state to show you already paid sales tax on it, but if your state sales tax if more your suppose to pay the difference. But if it is less your suppose to get a refund. I don't know how this will work with it going out of the country, but def should check. Hope this helps.

 

as a military type - 26 years - I've bought many a car in many a state and then registered/titled it in another.

In my experience....when you go to register/title {if you DON'T LET THE DEALER HANDLE IT} they ask to see your documents and if you have already paid a state tax equal to or beyond the state in which you are registering they don't clip you. If you paid less they collect the delta. You can pay zero to where you buy and pay all to the sate where you register....

If you have documents to show you paid tax less than the 'target' state, they make you pay the delta. If you pay more, then to quote Fred Sanford, "you big dummy."

However, I've found the best plan to be to tell the seller you will handle the registration yourself, bring a plate with you to slap on the car (most states have a grace period for x-fers) and then you don't pay sales tax where you buy it.... nada. You will need to pay full sales tax for the state where you register it....obviously a bit of research of the respective tax rates would be in order. {perchance explainging why my 4 vehicles have plates from 2 different states at this time.....}.... now suppose you are buying out of state (exploiting domocile vs resident rules) and it is a new/added vehicle and not a replacement... Well, I would never suggest that you carry any valid plate you have and if push comes to shove exploit the x-fer grace period......as Grace Mary Hopper is alleged to have said, "better to ask forgiveness than permission."

So what I'm trying to say is they collect the tax when you apply for title/registration (ever done the citizen to citizen used car thing????). Get the dealer out of that loop by bringing your own plate....then you simply deal with tax in your (registration) state.

Looking at the msg wrt to Indiana...if they caught this loophole - u're screwed. The first state I exploited this deal in was Indiana. Buying an Audi they wanted nearly $1000 in property tax to get plates. I thought getting IN plates would be easier - didn't expect the cost. Went back to registering in FL, my stae of residence at the time & cost me $50 to get plates (in a galaxy far far ago) - bit of legwork to get the forms completed but lots cheaper. I carried a current FL plate to the dealer and drove away. Paid zero sales tax to Indiana - then dealt with FL....

As a MIL type there was some hassle to get all the FL forms done right when out of state but that shouldn't be u'r case. All you need to do is get out of the purchase state and back home!

Do some research!