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Alvah
04-27-2008, 01:53 AM
In the U.S. if you buy a car in New Hampshire, which has no sales tax,
and then you register the car in New York, which does, would you
have to pay New York sales tax on the car?

I don't think you would have to pay NY sales tax, but I'm
interested to know if that's right or not.

Thanks,

jclarkdawe
04-27-2008, 05:39 AM
You'd get nailed on the sales tax.

New Hampshire has tried to get it so this doesn't happen, but the other states want their money. States have various ways to get it, usually tied into the registration process. Even long-term NH residents who move out soon after buying a car can get nailed on the sales tax.

However, NH car dealers will give you a good deal. And nearly all of the snow has melted. And we can really use your money. Plus you need to take a vacation.

So come on up and spend some money.

On the flip side, if I buy a car in New York, I don't have to pay a sales tax if I register it in New Hampshire.

Best of luck,

Jim Clark-Dawe

Fenika
04-27-2008, 06:03 AM
I know with boats and businesses people get away with this all the time (dodging taxes). You will see a disproportionate number of boats with Delaware (no sales tax there either) under their name. People buy and register them there. Done deal (afaik).
With businesses they often put their corporate office there, even if the main business occurs elsewhere, in other buildings in other states. Wilmington is the main place for this.

But, to answer your question, there are ways to be tricky about registration I'm sure. I just don't know what you'd have to do, or if you even can after the new laws passed since 9/11 (the tightened up the laws concerning transport vehicles, including trailers, etc.)

And just as extra info- if you buy a vehicle for farm use, NY gives tax breaks for said item. Other states do as well.

Cheers,
Christina

Rabe
04-27-2008, 08:32 AM
In Nevada, if you buy a car in another state and then register it in Nevada, you pay the difference in the sales tax (if there is one) but don't get a refund if you buy it in a higher sales tax state.

Where I live, we have a lot of people shopping 'out of town' for cars because they seem to think they get a better deal.

Since I've bought all three of my new cars from the same dealership, and gotten deals that I *know* I wouldn't have gotten out of town, I've never had to do this. But others have. It's somewhat annoying, actually.

But wait! NH doesn't have a state sales tax? AND no state income tax? Where does the state get it's money?

Rabe...

LeeFlower
04-27-2008, 09:09 AM
In Maryland, you get nailed for what the sales tax on your vehicle would be even if you already paid sales tax in another state, no matter what the sales tax was.

That really chapped my *** when I was registering my motorcycle. I asked what the deal was and I was told it was to encourage people to buy in-state so they wouldn't have to pay sales tax twice. I said "Well gee golly, that sounds kind of like an interstate tariff, and I'm pretty sure those aren't constitutional (http://www.law.cornell.edu/constitution/constitution.articlei.html#section10)." The lady behind the counter smiled at me and asked if I'd be paying cash or credit.

(for the record, I'm totally not a lawyer, and for all I know I'm full of hooey about the constitutional thing. But it was still totally lame).

As far as New York, here's what the NYS DMV website says about registering (http://www.nydmv.state.ny.us/register.htm):


Proof of sales tax payment, sales tax exemption, or purchase price. You must pay the sales tax, prove that it was paid, or prove your exemption at the DMV office when there is a change of ownership, a lease agreement, or a new resident of NYS applies for a NYS registration or title certificate. You must get a sales tax receipt from the DMV even if the transaction is exempt from sales tax. [snip]

If you were not a resident of NYS when the vehicle was purchased, use form DTF-803 to receive a non-resident exemption from NYS sales tax. Form DTF-803 defines the terms "non-resident" and "resident".

Hope that helps...

P.H.Delarran
04-27-2008, 09:17 AM
California used to have what is called a Tax Impact Fee assessed at the point of registration. for our mini van, which cost about $11 k in 1996, it was around $365. this tax was soon repealed and declared illegal, and the monies were refunded.

jclarkdawe
04-27-2008, 04:28 PM
But wait! NH doesn't have a state sales tax? AND no state income tax? Where does the state get it's money?

The only people who say we don't have an income tax are our politicians. If I earn over $50,000 I get nailed for a business profits tax if I'm self employed and investment income is subject to the interest and dividends tax. Both feel like income taxes to me, but what do I know.

We love fees. Lots of fees. Very high fees. And we put the state liquor store right on the interstate (no one else does that). You want to come to New Hampshire and be a tourist. Well come on up and have a good time. You'll see out-of-state people popping for a $1,000 worth of booze on holiday weekends. We do put up a sign say don't drink and drive.

We also have very high property taxes. That's one of our biggest tax sources.

On the flip side, the state barely supports education. There's no required kindergarten. Public assistance is minimal.

I wish we'd get a sales or income tax. The only people that benefit under our tax system are high priced business executives.

Best of luck,

Jim Clark-Dawe

WittyandorIronic
04-27-2008, 09:38 PM
In Maryland, you get nailed for what the sales tax on your vehicle would be even if you already paid sales tax in another state, no matter what the sales tax was.

That really chapped my *** when I was registering my motorcycle. I asked what the deal was and I was told it was to encourage people to buy in-state so they wouldn't have to pay sales tax twice. I said "Well gee golly, that sounds kind of like an interstate tariff, and I'm pretty sure those aren't constitutional (http://www.law.cornell.edu/constitution/constitution.articlei.html#section10)." The lady behind the counter smiled at me and asked if I'd be paying cash or credit.


Virginia is the same... and they have stupid fees we have to pay every year. They are essentially property tax on cars and other big ticket items. Bastards...