Does anyone know off hand how taxes/titling works when doing an out of state purchase? I realize each instance may be different but just an idea? I don't pay taxes in both states do I? Living in PA but will likely buy out of state...from a dealers inventory. Thanks

Jeff

 

I purchased in Illinois but live in Indiana. I paid Indiana Sales Tax only. My car was delivered one day after my state sales taxes went up from 5% to 6%

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MINI Pilot with Pure Sivler wings! 2003 MCS

 

The dealer you buy from should be quite familar with how this works...so I'd start with them. Overall, there's no problem doing this (I did it...live in MA but bought in NY) but it may take some back and forth to get the paperwork just right. Also a lot easier if you pay cash.

I believe that the bottom line on taxes is that taxes are paid at time of registration to the state in which you are registering the car. So, you'll pay your taxes to the PA DMV, not to your dealer who may be located in another state. Often this separation isn't too clear since dealers tend to handle all of the registration details for the cars they sell. But when you do one of these out of state things, you end up getting involved personally and the details become less transparent.

 

It depends on the car sales tax of the two states (which can be different than state sales tax). I bought a car in VA, then moved to FL. The car tax was 3% in VA and 6% in FL. When I moved to FL and tried to register the car, they wanted me to pay FL tax minus what I had already paid in VA. Bascially, they wanted me to pay an additional 3%, which was $750. This charge is incurred if you purchased the car within 6 months of moving to the new state.

Check with the dealer, you may want to find a way to register it in the purchase state for the first six months if the above scenario holds true.

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02 mini cooper s, pure silver, black top and bonnet stripes, prem and sport packages, 17" wheels

 

yes, you only pay the sales tax for your home state.

I bought my MINI in New York and live in Colorado.

If you pay cash for the car, you'll just wait until you get back home to pay the local DMV.

If you finance, then be sure to contact the DMV AND your bank. I had to give the dealership in NY a check for the balance due on the car PLUS sales tax to satisfy my credit union. The dealership then had to write a check back to ME and the County Clerk for just the sales tax. Basically this was some kind of assurance to the credit union that the taxes were paid on it. It was really screwy, but whatever.

The lesson, call both your bank/credit union and your DMV to get things squared away.

 

>>yes, you only pay the sales tax for your home state.
>>
>>I bought my MINI in New York and live in Colorado.
>>

Like I said though, it depends on the state. In FL, I was charged sales tax in addition to what I had already paid in VA.

 

>>>>yes, you only pay the sales tax for your home state.
>>>>
>>>>I bought my MINI in New York and live in Colorado.
>>>>
>>
>>Like I said though, it depends on the state. In FL, I was charged sales tax in addition to what I had already paid in VA.

DaveinDenver described it correctly. You paid taxes in two state because you moved. A purchaser who does not change residency pays in only his state of residence.

 

I live in Seattle and bought my car in NJ. My dealer handled all of my WA paperwork. I paid the WA sales tax and registration fees to the dealer. It worked out well for me so I didn't have to handle it all myself and have my car inspected as an out-of-state purchase.

The downside is that my NJ temporaries expired 6 days ago and my WA plates are still nowhere to be found. The dealer is working with the state who says it may take another week. :???:

 

>>DaveinDenver described it correctly. You paid taxes in two state because you moved. A purchaser who does not change residency pays in only his state of residence.
>>

Thanks Okie, I was going to point this out too 'cause otherwise I wasn't following Motorthis's logic at all. You only taxes ONCE when you register a car...and you can't (legally) register a car anyplace other than your state of residence. Therefore, you only pay in your state of residence. Whew.