Buying a Car Out of State Tax Question

7998

Don't Care
Established Member
Malt Liquor Mafia
Joined
Mar 12, 2008
Messages
3,766
Location
PA
I was inquiring about a used car that is located in the Phoenix area and the dealer said if I pick it up in person I have to pay a 2.75% AZ sales tax. If I have it shipped I don't have to pay it.
I told him I thought he was wrong and to double check his information. He did and insisted I had to pay the tax.

Does anyone know what the truth is? I mean if having it shipped is the standard I guess I could always arrange for "Ray's" towing to pick it up take it to the shipper (Me) at the local hotel.
 

BlckBox04

I am the liquor
Established Member
Premium Member
Joined
Dec 24, 2007
Messages
8,493
Location
NJ
You have to pay the sales tax, if any, on registration regardless if it’s bought in person or out of state.

I’m going through this right now with an out of state purchase and the salesman asked me if I was going to pay my state sales tax out of pocket or if he wanted me to have the tax rolled into the finance and have the dealer pay the sales tax when they register it.

I think what he means is if you have it shipped and you go to register it at the dmv you’re going to be liable for the sales tax yourself. He’s just not wording it correctly to you.
 

hotcobra03

Well-Known Member
Established Member
Joined
Mar 11, 2007
Messages
7,461
Location
poteet,texas
Cool thread. Talking with my son now about this with a twist.

Im in Texas. He is in Indiana

I had vehicle given to me,but haven't done anything yet ,have signed title.

I want to give to him ..

So kinda can he do title in Indiana, get plates and come take it
 

ccq8le

Well-Known Member
Established Member
Malt Liquor Mafia
Party Liquor Posse
Joined
May 4, 2018
Messages
611
Location
Seattle (Redmond area)
I had a similar issue where I bought a vehicle out of california. The rule he told me was "if a shipping company ships the car I don't have to pay california sales tax" but if I trailer it I did have to pay.

I ended up picking it up and they changed the paperwork some to a car that was sold as a project, because they couldn't get it to pass emissions, which has to happen in california at the time of a sale.

Sent from my SM-G965U using the svtperformance.com mobile app
 

Black Gold 380R

Multiple SVT Collector
Established Member
Joined
Feb 28, 2008
Messages
5,580
Location
El Paso, TX
Based on my experience you have to pay taxes to the state where the vehicle is "registered." If you register it in AZ then you pay the taxes to AZ through the dealership. Otherwise you tell the dealership which state to register it in and then you pay taxes to that state.

You cannot purchase the vehicle and tell them you're going to register it in a different state and not pay taxes on the transaction. That may be what the salesperson means.

So, the registration paperwork is sent to the state you want the vehicle registered in.

I did this when I bought my Roush. I was stationed in Florida, but my home of record was Texas. When I bought the car in Florida I paid the dealership for the car, but the registration and taxes was sent to Texas. A few weeks later the dealer received my Texas plates and everything was good.

Call your state tax or vehicle registration office and ask them if you pay taxes in AZ if you will have to pay them taxes when you register the car and see what they say.

You cannot be double taxed, so your state tax or registration office should be able to tell you how it works when purchasing a vehicle out of state.

Sent from my SM-G950U using the svtperformance.com mobile app
 
Last edited:

BlckBox04

I am the liquor
Established Member
Premium Member
Joined
Dec 24, 2007
Messages
8,493
Location
NJ
I had a similar issue where I bought a vehicle out of california. The rule he told me was "if a shipping company ships the car I don't have to pay california sales tax" but if I trailer it I did have to pay.

I ended up picking it up and they changed the paperwork some to a car that was sold as a project, because they couldn't get it to pass emissions, which has to happen in california at the time of a sale.

Sent from my SM-G965U using the svtperformance.com mobile app
something about this just doesn't sound right, but if it worked out it worked out
 

ccq8le

Well-Known Member
Established Member
Malt Liquor Mafia
Party Liquor Posse
Joined
May 4, 2018
Messages
611
Location
Seattle (Redmond area)
The car really couldn't pass emissions (x- pipe and mods). They tried and failed a few times. I didn't mean the guy changed it for the benefit of me. Let me dig in my email and see if I have what they told me and charged me for. I bought my mystic from an online auction that was out of california. I remember I went to the dmv here in washington to discuss it with them as I remember the guy telling me I would just have to pay the difference and there was a name for it.

I will see if I still have his emails

Edit-
Ok so just reviewed my emails. What happened was they re did the bill of sale with me as a car that does not operate through california dmv.

I than had to do all my sales tax and title transfer through the state of wa myself. (which I remember not being that easy)

Anyhow to get back to what the op was asking here is how the correspondence with me of what I was originally told by the selling dealer......
I would have had to pay california sales tax if I picked up the car, and would have to settle up the difference with wa state, unless I used a shipping company he could do the paperwork for me through wa state dmv.

In the end I did all my own paperwork in washington after buying the car and just had a bill of sale with the dealer. It was not an easy process.


.
something about this just doesn't sound right, but if it worked out it worked out

Sent from my SM-G965U using the svtperformance.com mobile app
 
Last edited:

7998

Don't Care
Established Member
Malt Liquor Mafia
Joined
Mar 12, 2008
Messages
3,766
Location
PA
I am well aware I have to pay taxes in PA, my problem is paying taxes in AZ and PA. If you buy a car in NJ or PA from any other state you only pay taxes in the state you register it in.
I think the guy is wrong and just trying grab more money or it's some weird tax thing AZ.
Here is the convo.

Him: This Aston is still available and it would be no problem for you to do that its just we would have to charge you a 2.45% AZ sales tax for picking it up.

Me: Actually I believe that's not factual. I pay sales tax in the state I live. You'll have to collect the PA sales tax which is 6% and send that to the PA state Treasury.

Him: Arizona state law sir if you drive it off the lot with a non Arizona drivers license you have to pay city and county tax, 2.45% non reciprocal with your state. If you ship the car then you will avoid said taxes. I wish it wasn’t factual sir but sadly it is.
 

BlckBox04

I am the liquor
Established Member
Premium Member
Joined
Dec 24, 2007
Messages
8,493
Location
NJ
From what I can tell from google there can be a city sales tax for up to that amount but if he’s telling you you don’t pay it if you ship the car then it seems he’s actually helping you out there
 

ON D BIT

Finish First
Established Member
Joined
Jul 7, 2003
Messages
16,212
Location
Currently in Sonoma County
I am well aware I have to pay taxes in PA, my problem is paying taxes in AZ and PA. If you buy a car in NJ or PA from any other state you only pay taxes in the state you register it in.
I think the guy is wrong and just trying grab more money or it's some weird tax thing AZ.
Here is the convo.

Him: This Aston is still available and it would be no problem for you to do that its just we would have to charge you a 2.45% AZ sales tax for picking it up.

Me: Actually I believe that's not factual. I pay sales tax in the state I live. You'll have to collect the PA sales tax which is 6% and send that to the PA state Treasury.

Him: Arizona state law sir if you drive it off the lot with a non Arizona drivers license you have to pay city and county tax, 2.45% non reciprocal with your state. If you ship the car then you will avoid said taxes. I wish it wasn’t factual sir but sadly it is.
Call other dealers asking the same question.

You could always tell him that you’ll pick it up in person if they drop the price another 2.45%.
 

nxhappy

Well-Known Member
Established Member
Joined
Dec 16, 2006
Messages
10,031
Location
AZ
no no no . You live in PA, if you register the car in PA, you pay the PA taxes. The AZ dealer CANNOT charge you AZ tax which would be 7 to 8%. again, if you do NOT register the CAR in AZ, you do not pay the AZ taxes. It would not surprise me if a dealer is trying to **** you buying rolling that price into a different category.
 

Sinister04L

RIP Kane
Established Member
Joined
Feb 24, 2003
Messages
30,024
Location
Houston, TX
I just went through this with my Mach and Shelby, both bought out of state. If the state has a reciprocal tax deal with your home state that you are going to register your car in you will pay that state's tax rate. If that state's tax rate is lower than your state's you will still owe the difference when you register it. If that state's rate is higher than your state's rate you will get a refund. In my case I bought the Shelby in Michigan, who reciprocates with Texas, and their rate is 6% so I paid that 6% to the dealer. Texas is 6.25% so when I registered the car in Texas I owed the other 0.25%.
 

delvin.a

Well-Known Member
Established Member
Joined
Oct 31, 2010
Messages
1,236
Location
DFW, Texas
Cool thread. Talking with my son now about this with a twist.

Im in Texas. He is in Indiana

I had vehicle given to me,but haven't done anything yet ,have signed title.

I want to give to him ..

So kinda can he do title in Indiana, get plates and come take it

You have the option of transferring the title to your son (have his address as yours if needed) for a small fee. This will be a TX title in his name. Then he can register the car in Indiana
 

me32

BEASTLY SHELBY GT500 TVS
Moderator
Premium Member
Joined
Sep 6, 2005
Messages
18,457
Location
CA,NorCal
I just went through this with my Mach and Shelby, both bought out of state. If the state has a reciprocal tax deal with your home state that you are going to register your car in you will pay that state's tax rate. If that state's tax rate is lower than your state's you will still owe the difference when you register it. If that state's rate is higher than your state's rate you will get a refund. In my case I bought the Shelby in Michigan, who reciprocates with Texas, and their rate is 6% so I paid that 6% to the dealer. Texas is 6.25% so when I registered the car in Texas I owed the other 0.25%.

This is True

Some state such as Ca. Dealerships can not sell you a registered vehicle that will be driven off the lot without receiving Sales tax.

It would have to be shipped via a shipping company. Meaning it will not operate on Ca roads. In order not to pay sales tax.

Ca wants there cut from Sales tax.
 
Last edited:

VegasMichael

Well-Known Member
Established Member
Joined
May 31, 2010
Messages
6,393
Location
Empire State
This guy will know: @13COBRA

If memory serves, when I bought my GT500 in California and it was shipped by closed carrier to my doorstep in Vegas I did NOT pay CA tax but instead paid Nevada tax when I registered it.
 

13COBRA

Resident Ford Dealer
Established Member
Premium Member
Single Barrel Sirs
Joined
Jun 4, 2012
Messages
22,317
Location
Missouri
I was inquiring about a used car that is located in the Phoenix area and the dealer said if I pick it up in person I have to pay a 2.75% AZ sales tax. If I have it shipped I don't have to pay it.
I told him I thought he was wrong and to double check his information. He did and insisted I had to pay the tax.

Does anyone know what the truth is? I mean if having it shipped is the standard I guess I could always arrange for "Ray's" towing to pick it up take it to the shipper (Me) at the local hotel.

So. It might be their dealer policy to collect the tax, that's possible. They would then collect the tax and send it to YOUR local DMV, then you would have to chase down any overpayments for the next 90 days or so.

It is not a legal requirement that they collect tax for you. But heck, for a couple of hundred dollars, I'd get it shipped to my door anyways. I have a buddy that can assist if you'd like.
 

7998

Don't Care
Established Member
Malt Liquor Mafia
Joined
Mar 12, 2008
Messages
3,766
Location
PA
Thanks for all the thoughtful responses.

So. It might be their dealer policy to collect the tax, that's possible. They would then collect the tax and send it to YOUR local DMV, then you would have to chase down any overpayments for the next 90 days or so.

It is not a legal requirement that they collect tax for you. But heck, for a couple of hundred dollars, I'd get it shipped to my door anyways. I have a buddy that can assist if you'd like.

Thanks, I would probably get it shipped anyway to avoid the road rash but it's always been a dream of mine to drive across country, and what better way to do it than in your new car.
 

13COBRA

Resident Ford Dealer
Established Member
Premium Member
Single Barrel Sirs
Joined
Jun 4, 2012
Messages
22,317
Location
Missouri
Thanks for all the thoughtful responses.



Thanks, I would probably get it shipped anyway to avoid the road rash but it's always been a dream of mine to drive across country, and what better way to do it than in your new car.

@Tob did it in his MY20 GT500 in a snow storm. Well, halfway across country anyways. He made it non-stop, right before his open heart surgery haha
 

RedVenom48

Let's go Brandon!
Established Member
Joined
Sep 29, 2014
Messages
7,973
Location
Arizona
@7998 FWIW, private party transactions in AZ are not taxable.

From AZ to PA via you picking it up, youd be responsible for paying the state sales tax. Since you are not a resident, the 2.75 Is the overall state tax for AZ. You would be responsible for the tax balance (if any) to your state DMV.

Arizona is beautiful this time of year, I17 up to I40 should be clear and is a gorgeous drive from desert to Northern AZ forestland and mountain views.
 

Users who are viewing this thread



Top