View Full Version : how does paper work works if you buy it from different state
team23jordan
01-19-2004, 06:55 PM
how does paper work works if you buy it from different state???
say i go to Oregon to buy Legacy GT (when available)
Oregon doesn't have tax
WA has 8.6% tax
and i was wondering how the paper works,licensing and tax things works
thanks
Depends on the state your moving your car to. Check with your local DMV.
Seattle has 8.6% sales tax? That sucks. Over in Spokane it is only 8.11%.
-Allen
Derbagger
01-19-2004, 08:02 PM
In order to not have NH destroy MA dealers with their no sales tax, tax is taken at the DMV. You pay upon registration.
SUBE555
01-19-2004, 08:36 PM
Anyone have an idea on NJ? I live in Wisco now but may be in Jersey when I get my next car, here it's 5-5.5%.
PPower
01-19-2004, 09:50 PM
You are going to owe taxes in your home state. This is similar to ordering mail order where they don't charge you sales tax. However, you are SUPPOSED to pay taxes in your own state. For clothes and most mail order things, it's not going to get noticed. However, you buy a car, and the IRS might be able to catch wind of it. This is a common issue with buying furniture in North Carolina at factory outlets and having it shipped back to your home. That's actually where I read about it.
When I lived in PA, if you bought a car from anywhere (NJ was common) and tried to register it within a year of purchase, you paid PA taxes upon registration. I know CA has a similar law.
team23jordan
01-20-2004, 12:13 AM
so basically
you buy the car from other state and pay no tax or less tax
and dealer do the paper works but you have to resister your car at your state
right?
PPower
01-20-2004, 12:22 AM
Not at all. You DO pay taxes. The dealer probably won't have the paperwork for sales tax in your state. You will have to handle that yourself. What Tide is saying is that you will pay taxes in the state that you register the car in. What you pay is called a "use tax", not sales tax. Google for "use tax + your state" to learn more. The two can be different because the use tax may not include local taxes and therefore be a bit cheaper. It can't be sales tax because it wasn't sold there. You pay taxes based on where you are USING it, and car registration with show where you are using it.
team23jordan
01-20-2004, 12:48 AM
http://dor.wa.gov/Docs/Pubs/ExciseTax/RetailSales_UseTax/UseTax.pdf
what this is crap
"Use tax, unlike sales tax, is due at the rate where you first use the article in WA, not where the sale takes place. the state portion of the tax is 6.5 percent. local governments impose their own addtional use tax. depending on the rate of local tax, the combined use tax rate ranges from 7 percent to 8.9 percent.
for example, you live in goldendale, WA and purchase a computer in Portland, Oregon. the rate of use tax due on the purchase price of the computer is 7.5 percent. however, if you live in seattle, the rate of use tax is 8.8 percent because of the higher local rate."
so is that mean i have to pay use tax that is same percentage as sales tax??
then there is no point to go to oregon and buy it right??
maybe i dont get it right cause this whole use tax crap it making me fierce :evil:
SUBE555
01-20-2004, 01:06 AM
If you don't like it you can always move. :roll:
Tin_pusher
01-20-2004, 01:10 AM
I live in Oregon so no worries for me. Before this I lived in Alaska which has no income AND no sales tax!
Basically states use it as a sales tax protection measure to prevent the loss of sales in state to other states. Otherwise businesses near a border would be able to compete.
PPower
01-20-2004, 08:38 AM
however, if you live in seattle, the rate of use tax is 8.8 percent because of the higher local rate."
so is that mean i have to pay use tax that is same percentage as sales tax??
then there is no point to go to oregon and buy it right??
maybe i dont get it right cause this whole use tax crap it making me fierce :evil:
I'm assuming that your sales tax is 8.8%, right? Then just buy your car there. case solved. we can all go home. ;) (thanks for the improved wink)
team23jordan
01-20-2004, 06:32 PM
say i register my car to DOL of OR
how long does the car has to be registered in OR
inorder for me to bring the car to WA without paying any tax??
30G car
tax will be 2640 dollars...
with that much money i can make car a lot faster
AMT4SWA
01-20-2004, 06:39 PM
Buy it over the internet from a different state and pay no sales tax at all!!!
JK...that would be nice! :lol:
Basically the system is rigged, you will have to pay one way or the other when it comes to new car sales tax. :cry:
team23jordan
01-20-2004, 06:41 PM
damn it
this sucks
but one of the local subaru dealer has internet price*
they have STi for 29.5G
and WRX for like 23G
crazy ish
Ridgeracer
01-30-2004, 02:49 AM
Hey guys....case in point....I bought my 98 Accord in NJ about 2 years ago. My home address is in NYC. I got a wavier for the NJ taxes but had to shell out the tax money at NYC rates when I registered at the DMV. It just doesn't pay...