How to avoid paying sales tax on out of state vehicle purchase?

Silver Snake

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I hear that if you buy a vehicle out of state and wait 90 days to register it, you can avoid paying the taxes. Is this true? Has anyone done this that could explain to me how this works?

Mark
:)
 

Magicboy2

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The 90 day thing only applies if it was already in your name in the other state.

If you want to defraud the government, have the seller write up a fake bill of sale.
 

ViperJoe

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If you are buying from a dealer, show them your drivers licence with your out of state address on it (?)

I bought my Z-06 from a dealer and the Viper from an individual both out of state and did NOT pay THEIR state taxes, I paid taxes in MY stste. Never heard that 90 day thing.

SOME states have reciprosity(sp?)and if you pay in one state its good in another.

Might have misunderstood the question.... No matter how LONG you wait, a YEAR, when you register the car in YOUR state, no matter WHERE you bought it from, you WILL pay the tax in YOUR state.
 

vipah

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You will end up paying the state tax where you register the car. Even if you have a bill of sale for $1 you will pay tax on the blue book value.

You know what they say about Death and Taxes right?
 

jimandela

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I had to pay NYS sales tax even thought i bought my car from Woodhouse!
but do not pay tax on the gas guzzler tax!!
they will try and make you!!
tell them no way am i paying tax on a tax!

I had a dispute with the DMV manager for about 30 mins with her making calls to accounting, etc.
but i flat out refused! Told her here is my large check for the rightful sales tax. take it or i am leaving
and just will not register the car. She blinked first, and said okay don't leave with that big check.
We'll take what we can get!

Damn tax collectors!!! :mad:
 

Roadkill

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Doesn't work that way Mark.. I tried it.. Bought my car in Vegas and still had to pay the state taxes.. the only way your 90 day out of state thing works is if YOU are out of state with that car for 90 days. Believe me when i say that the California Franchise Tax Board will want documented proof that it was you out of state for each and every one of those 90 days. SO... if you can handle a 3 month vacation and keep receipts showing that it was you that paid for items every single day.. ie: CC receipts then you can swing it.
 

KERS-VPR

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If it is a used car, you can fudge blue book value by saying the car needed this or that or repaired and bring the value down some. In our state the taxes are 6%, so $5000 under would still save you $300. See what you can get away with. I saved enough to pay for an extended warranty and then some. How farrrrrr can you stretch it ?????? ;)
 

ntmatter

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You could get a drivers license in a non-tax state (such as Oregon), register the car there, wait 90 days, then re-register the car in your home state. Most states have a use-tax law of some sort that says if you buy something out of state and don't pay sales tax on it then you need to still pay local tax.
 

Johann

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You need to check out the Board of Equalization regulations (they have a website), in particular, Regulation 1610e.
If your circumstances qualify you for an exemption, you'll need to fill out a Form BOE-106 and show receipts for the claimed time out of state. The quantity and quality of receipts you'll need varies with the field office.
 

scottgf

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Mark,
I have a friend that owns a resort (trailer park) on the river in Parker AZ. and they have a few brand new big $$ RV's that are just sitting on spaces there...I asked what was the deal, he said they are people who just purchased them and are renting a space for 90 days before taking them to Cal.
Maybe the space rental is "proof" they are in AZ. for the required 90 days......
Maybe you could park the car in a parking garage for 90 days :)
Cheers,
 

Lee00blacksilverGTS

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"Not a prablem, I am fixing all da taxes on all da cahs and tings of dat nature in da grate state of Kalifornia"
Ahhnold.

Seriously, wasn't he gonna fix this as his first act or am I thinking of the registration tax? I would think, especially in California, you are gonna have to pay the tax, how much? Reread Chucks post. What you need to be careful of is if you are a resident of California you ONLY owe the tax there when you register the car. You DO NOT have to pay the tax in the state you bought it in.
 

Hoosier Daddy

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Do not register the car in your State. Just trailer it back and forth to the track. That is about the only way to avoid your state tax if they have one!
 

OutThere

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This will sound like BS but....

I bought my Viper from a dealer in AZ and drove it back home to Florida. The dealer had a salesman follow me to the border with New Mexico and as soon as we crossed the border we pulled over, took a picture in front of the local DMV, and signed some paper-work.

Back in Florida I just never bothered to register it. I was only driving on weekends anyway and I figured that if I got a ticket it would only be a few bucks. After nearly a year I went down to the DMV and registered it like I had just moved there. They didn't ask me for the old plates or anything, it just went through. I wasn't really expecting to dodge the tax, just thought I was putting it off. All and all pretty cool as I saved nearly $3,000.
 

J DAWG

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MS will penalize one if the out of state purchase is not registered within 9 business days. I have bought my last 5 vehicles out of state and it is a pain to get all the paperwork in on time, but trust me there is no way around Sam.
 

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