Trx available

[Rcasa20]

They collect your state/county sales tax at the dealer, when you buy it, and then send the info to your DMV. When your DMV gets the paperwork from the out of state dealer you pay for your registration.

That is understandable. Thanks!!

 

[TyRX]

@TyRX I am thinking about buying a TRX and may be out of state. I’ve never done that before and would have assumed I’d pay sales tax to dealer at purchase just like if I bought a pair of shoes in another state I’d pay sales tax there. Can you educate me? Sounds like I wouldn’t pay any sales tax to dealer? Instead I’d pay to Florida during tag process? And then who does the tag? Thx!!

You may pay it to the dealer if they are going to submit it back to your state. Sometimes they won't do that though and you pay for it when you go to title it at the DMV. Here is a quick summary I found from the net since I'm too lazy to type it all out

If I Buy a Car in Another State, Where Do I Pay Sales Tax?

Typically, when you buy a car in a different state than where you reside, the car dealer collects your sales tax at the time of purchase and sends it to your home state's relevant agency. That way, you do not have to deal with the fuss of trying to follow each state's unique tax laws. Before the Department of Motor Vehicles in your home state will register your new vehicle, they may check the bill of sale to ensure you paid the sales tax, so you should not try to skimp on paying it.

Dealers often tax out-of-state buyers the amount they would pay if they lived in the state in which they are buying the vehicle, so you may have to make up the difference if your home state's sales tax is higher. To avoid confusion when you register at the DMV, make sure you get a bill of sale from the dealer for your vehicle purchase price with the tax included. You do not want to be in a position where you must pay the sales tax twice because the dealer forgot to send the appropriate paperwork to your local DMV. Also, keep in mind that there are approximately 10,000 sales tax jurisdictions in the US, including cities, counties, and other districts, and each jurisdiction has its own tax laws. You may have to pay local taxes on top of state ones.

How Much Sales Tax Do I Need to Pay for My Motor Vehicle?

Determining how much sales tax you need to pay depends on your home state's laws and the state in which you bought the car. Some states have reciprocal tax relationships, meaning they provide credits to each other whenever their residents pay sales taxes across state lines. For example, Arizona has reciprocal tax agreements with Oregon, Virginia, Indiana, and California. For instance, if a California resident buys a car in Arizona, they may be exempt from paying the Arizona sales tax, but they must still pay it in California. Your state's DMV most likely lists the state's tax relationships with other states, so you should check their web page before making a purchase.

Even if you visit a non-reciprocal state, you may be able to avoid paying the sales tax in that state if you give the car dealer proof that you intend to register your car in your home state, such as providing your driver's license. If you buy your vehicle from a private seller instead of a dealership, you can simply pay the sales tax when you register the car in your home state. If you take this approach, though, the DMV in your home state may need to check the car's vehicle identification number (VIN) to make sure it matches the out-of-state titling.

When transferring cars between states, remember that legal differences between states extend beyond taxes. Some states require a smog test before registering a road vehicle to ensure it meets emissions requirements. The California Air Resources Board is notably stringent in this respect. Similarly, safety standards between states often clash. If you buy a car in another state, there is no guarantee you can register it in your home state, even if you have already paid for the vehicle and all associated taxes. In addition, car taxes between states vary widely. As of 2020, New York has a car tax rate of 4 percent plus local taxes, whereas next-door neighbor Massachusetts has a state car tax rate of 6.25 percent, with some local rates much higher.

Knowing how much sales tax to pay when purchasing a vehicle is also helpful to know when asking for financing from a lender.

 

[TyRX]

They collect your state/county sales tax at the dealer, when you buy it, and then send the info to your DMV. When your DMV gets the paperwork from the out of state dealer you pay for your registration.

Not always. I've had dealers that won't collect sales tax. Instead, I show the bill of sale to the tax assessor/DMV and they collect it at the window just like would happen if you did a private party transaction

 

[Two]

@TyRX I am thinking about buying a TRX and may be out of state. I’ve never done that before and would have assumed I’d pay sales tax to dealer at purchase just like if I bought a pair of shoes in another state I’d pay sales tax there. Can you educate me? Sounds like I wouldn’t pay any sales tax to dealer? Instead I’d pay to Florida during tag process? And then who does the tag? Thx!!

You buy the car wherever, then go to your local DMV with the sales contract and the MSO.
That's when you pay taxes, registration fees, and such.

 

[SorbSRT]

Not always. I've had dealers that won't collect sales tax. Instead, I show the bill of sale to the tax assessor/DMV and they collect it at the window just like would happen if you did a private party transaction

I can only speak to my own experience.

 

[WILDDUX]

Not always. I've had dealers that won't collect sales tax. Instead, I show the bill of sale to the tax assessor/DMV and they collect it at the window just like would happen if you did a private party transaction

Exactly, 2 years ago I bought an HD Cummins in Idaho, they didn’t want to touch the CA taxes, they could only estimate what they thought they would be. I had to pay the taxes at the CA DMV when getting it inspected and registered.

 

[RobR651]

Either way your registering state gets your tax money

 

[TyRX]

Either way your registering state gets your tax money

Bingo -- you aren't paying for the high school down the road in a state you don't live in.

 

[KingsCamo]

Tyrex
I think I know what I am doing. I was in the automobile business for 30 years!
Own five auto dealerships. Sold over a million cars.
When you buy out of state vehicle. That dealer has to turn the MSO into a title.
The DMV can’t take a MSO from a individual. So some dealers will just charge title fees. Most will charge sales tax. Then you have to go go to your DMV and prove you paid it or drive with a out of state plate.
And yes a portion of all sales tax collected stays local. Even if collected in the same state. The local dealer pays property taxes which pays for schools and protection. They are always ask to support the local schools and community!!
By the way I own 5 other multi million dollar retail businesses so yes. I think I understand a little more than you can learn and get off google!!!!

 

[jonny_pockets]

I think every state is different I live in NJ, bought my truck in Michigan. NJ new car sales tax is 6.625%, Michigan was only allowed by law to collect their tax rate,6%, they are forwarding it to NJ then I will be owing NJ the additional 0.625%. The dealer in Michigan pays a titling company that’s doing all my paperwork with the NJ DMV to title and get my plates for me..... that’s all I know about that and don’t care about knowing anything else.

There’s a lot of who knows more and who has more money in a lot threads on this group, while I’m just sitting here enjoying my awesome truck

 

[RobR651]

This thread has taught me that the majority of folks hate ADM (which I already knew) and how the ignore function works for specific users. That’s a real nice feature!

 

[TyRX]

Tyrex
I think I know what I am doing. I was in the automobile business for 30 years!
Own five auto dealerships. Sold over a million cars.
When you buy out of state vehicle. That dealer has to turn the MSO into a title.
The DMV can’t take a MSO from a individual. So some dealers will just charge title fees. Most will charge sales tax. Then you have to go go to your DMV and prove you paid it or drive with a out of state plate.
And yes a portion of all sales tax collected stays local. Even if collected in the same state. The local dealer pays property taxes which pays for schools and protection. They are always ask to support the local schools and community!!
By the way I own 5 other multi million dollar retail businesses so yes. I think I understand a little more than you can learn and get off google!!!!

I'll give you the head nod on the property tax for your dealership, that does pay for your locality. Then again, that's not how you wrote your post. The MSO is off though -- you can take a MSO to your titling agency at least in Texas which is your tax assessor.

Glad you're successful, and I'm sure that success has meant that you don't have to deal with the books, laws, or intricacies that we are talking about here.

 

[OkieTRX80]

 

[Two]

Own five auto dealerships. Sold over a million cars.
When you buy out of state vehicle. That dealer has to turn the MSO into a title.
The DMV can’t take a MSO from a individual. So some dealers will just charge title fees.

Can't say that I've sold a million cars, but I've bought quite a few (which one reason I have too many).

Anyway, the dealers we've been buying from can't turn MSOs into titles. That's what the local DMV does.
And maybe the DMV "can't take an MSO from an individual", but they do. At least that's how I've registered my new vehicles - show up with the sales contract and the MSO, then pay the taxes, etc.

Didn't even have to use Google to accomplish the transactions, it was that simple.