Type_S_Maniac

hey! i was wondering if there is a website where i can go to find out the different automobile tax rates for each states. if any of you live in the mid-atlantic region, do you guys know the tax rate for deleware, pa, va, or md?

R Man

You don't have to pay sales tax on out-of-state automobile purchases until you register the car in your home state.

kensteele

An automobile is considered personal property and is subject to sales tax just like a television or a coffee table.

Unless you plan to register the car in another state, you pay sales tax in your own state when you register. Otherwise, the automobile tax rate is the sales tax rate.

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* 2001 Acura CL Type S * Blk/Blk * Navigator * Spoiler * Moonroof Visor *
* Since 3/31/2000 *
Road Warrior

Type_S_Maniac

oh i see now! so i guess ill be paying 5% tax in md if i register it here. thanks for the help!!

tlsshopper

Caution: Since I'm going through this process now, here is some additional info (at least for a SoCal purchase). In theory, it is true that you only need to pay sales tax in the state where you are registering the car. If you purchase in one state and register in a different state, then you don't need to pay sales tax in the purchasing state IF you LITERALLY TRUCK the car out of that state and into your state (ie, you can't drive it out). If you want to drive it out, then the dealer MUST charge you their sales tax, but you can get $15 3-day temp tags to drive the car to your state for registering. So then it would be wise to research the best sales tax for the cities in the general area where you want to purchase the car (if you can negotiate a similar deal).

R Man

Well that's an eye-opener. I've never heard of that. But then I've never purchased out-of-state before either. Damn, looks like more research is necessary!

1000bpm

You sure about that?

I bought my car in St. Louis and registered in Illinois 30 days later. The lady at the registration office didn't bat an eyelid. Neither did the the business manager at the St. Louis dealer indicate that it would be a problem (I asked specifically). He said he has customers who do that all the time.

daverman

In Kansas City (half of the city is in Kansas and the other is in Missouri), people routinely cross the state line to buy cars. You pay the tax for your state of residence, but the dealer will gladly collect the tax and roll it into your loan no matter where you live.

kensteele

Exactly. I've only been here for two years and I purchased my vehicle at Jay Wolfe Acura in Missouri and I live in Kansas. I paid no tax at time of purchase and 30 days later, I owed sales tax at registration time in Kansas (for a new car purchase). I could have paid the tax in Missouri but no free 30-days.

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* 2001 Acura CL Type S * Blk/Blk * Navigator * Spoiler * Moonroof Visor *
* Since 3/31/2000 *
Road Warrior

tlsshopper

It all depends on the state where the purchase is made and the state where the car is registered (assuming they will be different). For a purchase in CA and a registration in AZ, what I stated earlier is valid (because I'm being forced through that hoop myself). Maybe it is a CA sales tax rule. Anyway, it is a caution flag to check out so you don't get surprised.

Also, I've heard that some states don't recognize the sales tax paid in another state (ie, no compact between states) and require you to pay their state's sales tax before you can register the car (yeah, a really negative surprise). Just call your state's DMV and ask the selling dealer their sales tax requirements before you go shopping in other states.

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Type_S_Maniac

thanks guys!! i know in deleware there is no sales tax rate. so i will definetly call up the dmv in deleware and in maryland to figure out if i can save myself from paying the sales tax on the tls.

1000bpm

Yeah .... but i'm willing to bet they'll nail you with some kind of registration tax. Just out of curiousity, how does Delaware make up for lost tax revenue thru sales tax??

Type_S_Maniac

thats a good question....but if the sales tax on a car is the same as a sales tax on other products, then i guess there is no sales tax on cars either. but thats is pretty amazing how they dont have a sales tax at all.

1000bpm

You will need to pay sales tax in MD because that is the state you reside in. Think about it, if things were as easy as buying a car in Delware to escape sales tax everyone would be doing it.

There's no way you can escape sales tax on your car if you live in MD.

Type_S_Maniac

yeah u do have a good point. does anyone in deleware know of any acura dealerships giving out good deals on the tls with navi?

kensteele

No major interstates, a toll road, maybe they have high income tax, and high-priced speeding tickets; maybe port taxes, gasoline taxes, etc....the same way Texas makes out without an income tax. Delaware is a small state, they don't really need that much.

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* 2001 Acura CL Type S * Blk/Blk * Navigator * Spoiler * Moonroof Visor *
* Since 3/31/2000 *
Road Warrior