TMC is an independent, primarily volunteer organization that relies on ad revenue to cover its operating costs. Please consider whitelisting TMC on your ad blocker or making a Paypal contribution here: paypal.me/SupportTMC

Out of state dealer purchase - double state sales tax?

Discussion in 'Model S' started by mn4az, Jan 16, 2016.

  1. mn4az

    mn4az Member

    Joined:
    Aug 27, 2015
    Messages:
    151
    Location:
    USA
    Curiosity question just in case an offer I may make was to be accepted....

    I live in a state in which upon private sale the buyer needs to pay sales tax upon registration of the purchased car. So if I was to buy a used Tesla from a dealer in another state would I need to pay that state sales tax (ie to the state where Tesla is currently located) on the purchase and pay my own states sales tax as well?
     
  2. dsm363

    dsm363 Roadster + Sig Model S

    Joined:
    May 17, 2009
    Messages:
    18,235
    Location:
    Las Vegas, NV
    What state are you in? You typically only pay the sales tax of the state you register the car in I believe. That's how it was in Texas with a new car purchase at least.
     
  3. HankLloydRight

    HankLloydRight Fluxing

    Joined:
    Jan 18, 2014
    Messages:
    5,748
    Location:
    Connecticut
    Most every car I've bought has been "out of state" and the selling state does not charge sales tax to out-of-state buyers, and you just pay sales tax at registration.

    California is one exception if you take delivery of a car in CA, they do collect CA sales tax.

    Other states, YMMV.
     
  4. mn4az

    mn4az Member

    Joined:
    Aug 27, 2015
    Messages:
    151
    Location:
    USA
    Minne-soh-dah


    Seems that MN is very fair in terms of state sales tax and out of state purchases:

    Vehicles purchased in another state

    When you are required to pay another states sales tax, Minnesota allows credit for that sales tax paid. However, if the sales tax rate you paid is lower than Minnesota’s, you owe the difference. The Motor Vehicle Sales Tax is paid directly to a deputy registrar or the Driver and Vehicle Services Division (DVS) at the time the title is transferred.

    http://www.revenue.state.mn.us/businesses/sut/factsheets/FS125.pdf
     
  5. AWDtsla

    AWDtsla Active Member

    Joined:
    Mar 3, 2013
    Messages:
    2,130
    Location:
    NE
    Buy from a state that requires sales tax at registration not sale time? Isn't that most states?
     

Share This Page