Tom and Vipers
Enthusiast
Delaware, New Hampshire, Montana, Oregon, Alaska.
Dum de Dum de Doo....
Now why would anyone want to know this?
Dum de Dum de Doo....
Now why would anyone want to know this?
States without Sales Tax
- Thread starter Tom and Vipers
- Start date
garolittle
Enthusiast
Ummmmmm .... so if I live in Georgia and purchase a new Viper from a dealer in New Hampshire, I do not have to pay any sales tax? Cool.
OP
OP
Tom and Vipers
Enthusiast
Yes, but if you live in Oregon, you can purchase a car in any state and not pay any sales tax!
Viperrick
Enthusiast
I think that the way it works is if you buy out of state you don't have to pay sales tax in the state you are buying in but once you go to register the car in your state you will have to pay your local/states tax. I have also heard that some states make you pay their sales tax regardless and once you go to register your car in your state you have to pay your states tax and then you file to get a refund from the state you bought in initially. Maybe Bill Pemberton or John Gastman can answer this. I am going from memory and I will be the first to admit that it isn't as good as it use to be. My wife will confirm that.
Would be nice if you could buy it like a gift out of state and have it mailed to the house. I remember that I didn't have to pay California sales tax on some purchases because I showed proof that I lived out of state. Catch was it had to be shipped. No cash and carry allowed. Isn't this why state goverment is all bent out of shape with purchases over the net?
Would be nice if you could buy it like a gift out of state and have it mailed to the house. I remember that I didn't have to pay California sales tax on some purchases because I showed proof that I lived out of state. Catch was it had to be shipped. No cash and carry allowed. Isn't this why state goverment is all bent out of shape with purchases over the net?
When I purchased my last Viper from Bill Pemberton "Mr. Viper" at Woodhouse, I did not pay Nebraska tax. I did however, have to pay California tax when I registered the vehicle in California. I think you have to live in most States for 6 months and a day to qualify to pay or not pay the local or State tax.
I am expecting to do the same with my new SRT-10 also purchased from Woodhouse.
I have not heard what the deal is yet on the Comp Coupes yet. They will be purchased from Michigan and not registered when they arrive in each State. The last I heard was we were going to have to pay Michigan tax at time of purchase.
I am expecting to do the same with my new SRT-10 also purchased from Woodhouse.
I have not heard what the deal is yet on the Comp Coupes yet. They will be purchased from Michigan and not registered when they arrive in each State. The last I heard was we were going to have to pay Michigan tax at time of purchase.
Mike Brunton
Enthusiast
You pay sales tax to the state in which you reside.
Note "reside" is the legal definition of residence.
If you reside in New Hampshire, you do not pay sales tax on a vehicle, even if you buy it in Massachusetts or New York or anywhere else.
If you reside in a state WITH sales tax (Massachusetts) and buy from a state with NO sales tax (New Hampshire), you STILL pay sales tax at the time of registration.
If Jerry "moved" to Oregon, he could establish residency there and not pay sales tax on a car purchase. However, if he was doing this to get around the tax laws, he would most likely be caught for 2 reasons:
1) Most states have laws that you must register a vehicle within a certain period of time. If he kept driving on his Oregon plates, eventually it would raise suspicion and he'd get pulled over and ticketed, and if it came up on the states radar screen, you better believe they would be looking for their tax money.
2) Most states have mechanisms in place whereby they check for this sort of thing. If I file a MA tax return on a MA address, but my car is registered in NH, it's gonna raise a red flag. It would be a real PITA to have a second 'residence' just for tax purposes - because all your mail woudl go there, etc, etc.
My question would be - if one moved from Oregon to California, they do not pay sales tax - only registration fees. So, how long does one need to "live" in Oregon before "moving" to California to avoid raising a red flag? Or does nobody know?
Note "reside" is the legal definition of residence.
If you reside in New Hampshire, you do not pay sales tax on a vehicle, even if you buy it in Massachusetts or New York or anywhere else.
If you reside in a state WITH sales tax (Massachusetts) and buy from a state with NO sales tax (New Hampshire), you STILL pay sales tax at the time of registration.
If Jerry "moved" to Oregon, he could establish residency there and not pay sales tax on a car purchase. However, if he was doing this to get around the tax laws, he would most likely be caught for 2 reasons:
1) Most states have laws that you must register a vehicle within a certain period of time. If he kept driving on his Oregon plates, eventually it would raise suspicion and he'd get pulled over and ticketed, and if it came up on the states radar screen, you better believe they would be looking for their tax money.
2) Most states have mechanisms in place whereby they check for this sort of thing. If I file a MA tax return on a MA address, but my car is registered in NH, it's gonna raise a red flag. It would be a real PITA to have a second 'residence' just for tax purposes - because all your mail woudl go there, etc, etc.
My question would be - if one moved from Oregon to California, they do not pay sales tax - only registration fees. So, how long does one need to "live" in Oregon before "moving" to California to avoid raising a red flag? Or does nobody know?
OP
OP
Tom and Vipers
Enthusiast
You pay the tax when you apply for the title.
So the real question is:
Can you transact the resale of an SRT in a non-sales tax state?
You find one with instant title generation (NJ has this while you wait!).
So you get the title with a Holiday room number address for which you are registered with the "intent" of relocating. Sign over the title to the new guy who takes it to his state where he pays the tax.
What would work in your favor is questioned would be that you kept and maintained the car in this other state, at that address, for the entire time you owned the car.
The only weakness would be they usually want a driver's license which means you would produce one that would be from a sales tax state. Since about $5000 is on the line. It might be worth getting a license in that state.
I'm sure there are a bunch of people who have done this.
In the state of OH, they like to get people from PA to come over and get OH plates. So their definition of "resident" is any person who intends to reside in OH in the future! Of course, I may be confused and this may be the law in TX. I'm sure it's one of the 2!
If funny business will favor a state, they will play!
Boy, have I been in an anarchistic mood tonight!
Tom
So the real question is:
Can you transact the resale of an SRT in a non-sales tax state?
You find one with instant title generation (NJ has this while you wait!).
So you get the title with a Holiday room number address for which you are registered with the "intent" of relocating. Sign over the title to the new guy who takes it to his state where he pays the tax.
What would work in your favor is questioned would be that you kept and maintained the car in this other state, at that address, for the entire time you owned the car.
The only weakness would be they usually want a driver's license which means you would produce one that would be from a sales tax state. Since about $5000 is on the line. It might be worth getting a license in that state.
I'm sure there are a bunch of people who have done this.
In the state of OH, they like to get people from PA to come over and get OH plates. So their definition of "resident" is any person who intends to reside in OH in the future! Of course, I may be confused and this may be the law in TX. I'm sure it's one of the 2!
If funny business will favor a state, they will play!
Boy, have I been in an anarchistic mood tonight!
Tom
OP
OP
Tom and Vipers
Enthusiast
Actaully, why not a miniwarehouse?
FUSCUCLA1
Enthusiast
I think, in california you do not pay sales tax if the car was driven for 90 days in another state. I remember trying to get this to work to my advantage when I bought my Viper. The lady at DMV had told me if you register after 90 days of purchase you dont pay tax, so I raised hell to get my tax money back (I registered 6 months after purchase) and was informed that its not a 90 day wait period but rather having the car in another state for 90 days, I assume that would mean registered in another state for 90 days. Anyways it wasnt totally clear to me, and DMV employees always seemed to be missing a detail or two so I never bothered to get the real story since I had already paid my 6k in tax.
Viperfreak2
Enthusiast
6K in tax? WOW, I thought South Carolina was a bass ackward state, but our tax is 5% OR a maximum cap of $300. Too bad they can't see straight on the property tax too....which will be about $2000 per year.
OP
OP
Tom and Vipers
Enthusiast
Regarding CA, I did a quick inquiry because ZO6's were selling 20k over sticker and here in PA they were 2k over.
I think the rules were that a new car could not be bought outside of CA and brought in, period.
The exception was that the car had to be over 6 or 9 mos old or have over 8000 miles on it.
....or something like that.
Makes you think the Feds should step in because it seems like the states are hindering Interstate Commerce.
I think the rules were that a new car could not be bought outside of CA and brought in, period.
The exception was that the car had to be over 6 or 9 mos old or have over 8000 miles on it.
....or something like that.
Makes you think the Feds should step in because it seems like the states are hindering Interstate Commerce.
slaughterj
Enthusiast
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You pay an applicable "sales" tax to the state in which you reside/register the vehicle, not from where you purchase it.
Both NC and VA have a 3% car tax in lieu of the state sales tax (~6.5% and 5.5% respectively) that you pay. In one or the other, or both, when you domesticate a vehicle there (i.e., say you moved to NC from CA, and brought a car with you), you also pay a tax (it may be the 3% again, I don't recall). To me, that's pretty lame, and is a restraint on people moving from state to state - you should only be required to pay for the time your there (of course, you shouldn't be taxed on cars at all, but that's another story
).
Presumably you could register a vehicle in a location without a sales tax, deal with the tags, etc. (hopefully just a neighboring state), and avoid the sales tax. In order to do that though, you would need to have a legitimate claim to a residence in that state as well, and perhaps also need an additional vehicle to be registered in the state you are in, else the state will question why you have a home there, but no vehicle.
Both NC and VA have a 3% car tax in lieu of the state sales tax (~6.5% and 5.5% respectively) that you pay. In one or the other, or both, when you domesticate a vehicle there (i.e., say you moved to NC from CA, and brought a car with you), you also pay a tax (it may be the 3% again, I don't recall). To me, that's pretty lame, and is a restraint on people moving from state to state - you should only be required to pay for the time your there (of course, you shouldn't be taxed on cars at all, but that's another story
Presumably you could register a vehicle in a location without a sales tax, deal with the tags, etc. (hopefully just a neighboring state), and avoid the sales tax. In order to do that though, you would need to have a legitimate claim to a residence in that state as well, and perhaps also need an additional vehicle to be registered in the state you are in, else the state will question why you have a home there, but no vehicle.
Dead President
Enthusiast
For California residents, if you buy a car out of state, to avoid sales tax, it must be kept out of California for 90 days after purchase and it must have 7500 miles on it before you register it. Unless you put all of these miles on at the racetrack, you'd have to register the car in another state for a period of time. You can get a 10 day temporary permit from the CA DMV to move the car into the state; however, if it is not registered elsewhere. I am not sure if they require it, but the DMV will ask for the prior registration if the car was registered or brought in from another state.
If you have two Vipers how about a quick release on the license plate and just swap the plate from your old Viper to the new one. They'd never know . . . unless the officer knows (or looks for) the difference between a 1998 and a 2003. Then what?
How about buying two 2003 SRT-10s, register one and do the plate swap?
Hypothetically speaking, of course.
Frank
If you have two Vipers how about a quick release on the license plate and just swap the plate from your old Viper to the new one. They'd never know . . . unless the officer knows (or looks for) the difference between a 1998 and a 2003. Then what?
How about buying two 2003 SRT-10s, register one and do the plate swap?
Hypothetically speaking, of course.
Frank
