Sales Tax?

[Shadowmind]

Originally Posted by Col-85

I know we are complete and utter stangers but u couldnt ask him how he does it?

I can ask. He's not buying new cars, they're all used Spitfires and TVRs from either used dealers or private sales. I think he gets around tax issues here, because they're classified as used.

Its a pretty big market pulling in old TVR and Triumphs from the states to the UK. Most of the cars here have sound bodywork still, where a lot of the ones in the UK are all rotted out. But don't try and get into that business, he'd kill me if I turned someone into competition.

[Tim Adams]

So if I fully understand this, my tax rate in Grundy County here in IL is 6.25%, I'm buying from a dealer in Indiana. I was under the impression I would be paying the Illinois tax at the time I register and get plates in IL, not when I do the paperwork in Indiana.
Confused???

[Shadowmind]

Originally Posted by Tim Adams

So if I fully understand this, my tax rate in Grundy County here in IL is 6.25%, I'm buying from a dealer in Indiana. I was under the impression I would be paying the Illinois tax at the time I register and get plates in IL, not when I do the paperwork in Indiana.
Confused???

Not 100% sure about state to state tax laws. I only know that the tax laws in WA, require any out of state vendor to charge the destination tax rate for anything purchased out of state.

That sounds like your situation as well. You're buying in IN, either they aren't going to charge you tax... OR, they'll charge you your IL tax rate. "I" would want them to charge me, my tax rate, because of the following WA state law:

WA state screws you, because we live next to a no sales tax state (Oregon), where for decades past, you went to OR to buy your car, and registered it in OR state. But now you get doubly screwed, because if you pay no destination tax on a 'luxury item' (Car) within 2 years of purchase, you have to pay the full tax upfront when you register it, + an addition 1% tax on top of that.

That in effect stopped people from buying out of state where there is no sales tax.

I advise calling the franchise board where you live and explain what you intend to do, and ask at what point you pay the tax on the vehicle.

[Col-85]

Originally Posted by Shadowmind

Not 100% sure about state to state tax laws. I only know that the tax laws in WA, require any out of state vendor to charge the destination tax rate for anything purchased out of state.

so if the car was then not registered in another state, no tax?

but then obviously if the car was staying in the US, they would not be able to drive it. But as its leaving the country, this isnt an issue

[Rockies4]

The sales tax in California is 8.75%.

[Treefrog]

Does it not have to be registered/titled before it can be shipped?

[shroomjohn]

In Mo. you dont pay sales tax until you register it.I think this is how most states are Ive bought in a few and have never had to pay sales tax up front. You get a 30 day temp tag and go to the dmv to register then pay the bill also Ive bought 2 cars in 2 different states (Tx TN) and brought back to Mo. and only had to pay sales tax in Mo. where I registered the cars

[qdz21]

When you purchase a vehicle out of state you pay the tax % of the state you live in and whatever additional tax % your county has if any. For example, I purchased my 2010 camaro from Michigan but I live in Henry County, GA. Purchased at MSRP ($36325) dealership has documentation fees of $150.00(which is taxable) and Eletronic fee of $24.00(which is not in GA). I was taxed 4% by the dealership, which is the state tax for Georgia ((36325+150) x 4%) Car was now able to be shipped to me. Once I received the car went to DMV to purchase tag and register, was taxed another 3%, county tax ((36,325+150+1,000) x 3%). The $1,000 was my deposit to hold the car and for some unknown reason my county is allowed to tax deposits on out of state vehicle purchases.

If your state tax is lower that the state you are buying the vehicle from I believe you will pay the tax of the state you are purchasing the vehicle from. but don't quote me on this part. maybe someone else knows a little more on this.

Hope this helps someone.

[Col-85]

so will the dealer release the car if the sales tax has not been payed?

obv i dont want to pay the sales tax as i am not a IS citizen neither will the car be registered in the US

would i still get the title documents tho?

when the car is registered is this when you get your plates or tags? cos obv i wouldnt be needed these either

[nards444]

that isnt with tax. I dont know if the dealer will release it or not without tax. Since your bringing it oversees your going to have to go talk to your DMV or whatever you call it there. If your an american citizen i would think you would pay tax then ship it. If not I would think there would be a tariff fee or something.

[Col-85]

Originally Posted by nards444

that isnt with tax. I dont know if the dealer will release it or not without tax. Since your bringing it oversees your going to have to go talk to your DMV or whatever you call it there. If your an american citizen i would think you would pay tax then ship it. If not I would think there would be a tariff fee or something.

i already know the process in the UK so its not that i need to worry about

its the purchasing of the car from the US that is being so difficult

i cant tell the dealer im exporting it bcos there not allowed to do that, so i want to buy the car, not pay the sales tax and no register it for license plates

isnt there anybody that can work out how this could be done? i know other people do it on a regular basis but they wont tell me how as they do it to make money and dont want me taking their business.

Ive spoken to one dealer on this forum but he was reluctant to help

[NUCAR]

Originally Posted by Col-85

i already know the process in the UK so its not that i need to worry about

its the purchasing of the car from the US that is being so difficult

i cant tell the dealer im exporting it bcos there not allowed to do that, so i want to buy the car, not pay the sales tax and no register it for license plates

isnt there anybody that can work out how this could be done? i know other people do it on a regular basis but they wont tell me how as they do it to make money and dont want me taking their business.

Ive spoken to one dealer on this forum but he was reluctant to help

No doubt he was reluctant to "help" because you are asking them to commit fraud..... on a public forum Selling a vehicle for export is a violation of their dealership contract with GM and is closely watched. Sales tax is due in the state titling the vehicle and the vehicle must be titled in the US.

[Col-85]

Originally Posted by NUCAR

No doubt he was reluctant to "help" because you are asking them to commit fraud..... on a public forum Selling a vehicle for export is a violation of their dealership contract with GM and is closely watched. Sales tax is due in the state titling the vehicle and the vehicle must be titled in the US.

it was via PM and i was only asking for advice

i dont see how its fraud? charging US sales tax for that state to a non US citizen that will not be driving it on any US roads?

and like i said, it is done on a regular basis i just cant seem to find any dealers that are willing to help

[Fast Eddie]

Originally Posted by Tsudy

Sales tax must be paid at the time of purchase; basically consider it an added amount to the listed price of the vehicle.

If your car's MSRP is $32,000 and sales tax is 3%, then you'd be paying $32,960 (or financing it / etc) before driving off the lot

Hope this helps!

EDIT: You pay the sales tax to the dealer. The dealer handles getting that over to the government themselves.

This varies from state to state. Here you pay the sales taxes when you register and title the car.