I am about to buy a used NSX located in North Carolina but i live in Texas. What is the best way to purchase the car and reduce my sales tax liability? Any ideas?
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Paying Sales Tax on a out of state car
- Thread starter andy_d_chen
- Start date
My understanding is that you pay sales tax based on where you live not where you buy the car.
You can move to Georgia to reduce your tax liability as I have heard that you do not pay taxes on used cars bought from a private person (not dealer).
Good luck!
You can move to Georgia to reduce your tax liability as I have heard that you do not pay taxes on used cars bought from a private person (not dealer).
Good luck!
You pay sales tax on how much you "claim" you paid for the car. Of course, if you finance this much and only claim you paid this much..there might be a discrepancy. You need the seller's signature or one that looks very similiar ..on the county form wherever you decide to get it registered.
I THINK you have to pay sales tax for the amount the sales tax would be in the state that it is registered in.
For example, if you bought in NC and the sales tax was 3% and you paid it (you don't have to), and the sales tax in TX is 5%, then you'd owe 2% to TX.
For example, if you bought in NC and the sales tax was 3% and you paid it (you don't have to), and the sales tax in TX is 5%, then you'd owe 2% to TX.
I got my car almost a year now. You can read this thread for some additional information.
Congrats!
http://www.nsxprime.com/forums/showthread.php?t=41492&highlight=sales
Congrats!
http://www.nsxprime.com/forums/showthread.php?t=41492&highlight=sales
I bought my 2nd NSX in NC just last January. You pay nothing to NC, you will have to pay TX sales tax on the purchased price when you register it here in texas. You should print the form out before hand so the seller can sign it.
I just registered / paid the taxes on mine. Bought it in Georgia and registered it in South Carolina.
you pay whatever your state's tax rate is based on the price that is written on the bill of sale / title.
here in SC, it is (for now) capped at $300/vehicle so I was more than happy to hand the SCDMV their 325 (25$ title fee) and be on my marry way... they are trying to remove the tax cap so you would have to pay 5% of your purchace price...
that would have moved my $325 up to $1350!
but yea, long story short, there really isn't anything you can do aside from pay cash and have the seller write a lower price on the title, because that is what the DMV goes off of when they calculate your bill.
you pay whatever your state's tax rate is based on the price that is written on the bill of sale / title.
here in SC, it is (for now) capped at $300/vehicle so I was more than happy to hand the SCDMV their 325 (25$ title fee) and be on my marry way... they are trying to remove the tax cap so you would have to pay 5% of your purchace price...
that would have moved my $325 up to $1350!
but yea, long story short, there really isn't anything you can do aside from pay cash and have the seller write a lower price on the title, because that is what the DMV goes off of when they calculate your bill.
OneRedNSX said:
5% with a $300 cap would be heaven for me. The tax on a used car in CA is the local sales tax rate where you live, 8.75% for me, and there is no cap.:frown: They also got rid of the 90day delayed registration loophole of out of state vehicles that a lot of people have been using to escape the use tax.
Otto
GHOSTRIDER
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NormRD said:
Norm is exactly right.
Being "creative" with the bill of sale documentation can save you a few bucks.
GHOSTRIDER said:
Be careful there. about 15 yrs ago, when I bought my first car, the seller was "creative" with the bill of sale of a used car that I bought for $2000 and the seller wrote $500 on the bill. I received a letter from the DMV stating that the bill of sale did not match the Kelly Blue Book value of the car and that I owed the full amount of sales tax on the car. Luckily, (actually unluckily :frown: ) the car was a total lemon and I had over $3000 in repairs so I showed those receipts to teh DMV and they left me alone.
GHOSTRIDER
Suspended
Kelly Blue Book isn't in anyway the law. They couldn't have made you pay the difference without some more proof of doctored papers.
