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Old 05-18-2001, 08:35 AM   #1
neuromancer
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Post Does anybody know how sales tax works?

Thanks to the search function I've found a tonne of dealers that are not too far away where I can probably get a good deal on my new WRX.

My question is if I buy my WRX from a dealer out-of-state do I pay sales tax in my state (CT - 6%) or the state where I bought the car from?

Thanks guys.
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Old 05-18-2001, 08:36 AM   #2
tmat3
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You pay tax in CT when you register your car at CT DMV.
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Old 05-18-2001, 08:37 AM   #3
WagonMonster
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Unhappy

You pay taxes on where the car is registered.

Example if you buy a car in Oregon which has no sales tax and register it in California the DMV will charge you that not-so-nice 8.25% when you register the car.

It's the same in every state...they always get you.
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Old 05-18-2001, 08:41 AM   #4
neuromancer
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Wow! Quick Response!

Thanks guys. At least that's one variable I can remove from the equation.
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Old 05-18-2001, 08:58 AM   #5
harrydog
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Yes, otherwise dealers in states like Vermont, Maine and Mass. would never sell a car as everyone would cross the border into New Hampshire to buy their cars.
That type of thing already does happen with big items like TV's and other appliances.
I loved living in New Hampshire!
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Old 05-18-2001, 09:23 AM   #6
jzinckgra
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I am from maine, but bought my car in Ct. and ended up paying Ct. sales tax. The car is reg. in maine also. The finance guy said it was his responsibility to collect Ct. sales tax. Hmm?/? The difference was only 1%, plus I was able to finance that portion by doing it that way.
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Old 05-18-2001, 09:28 AM   #7
Aquavir
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I purchased my Rex in AL, and didn't pay the sales tax there, but paid it in MD when I registered. The dealer told me I could either do that or pay AL sales tax and then pay the difference when I registered in MD; however, I didn't believe him...I think you can only pull that one if you just moved to MD (like within 2 months)...I think if I had done that I would have ended up paying the full tax in AL and MD. I did have to drive from AL to MD with a completely unregistered car...I just had the little plastic plates that say the dealer's name on them! Anyway, I would purchase it out of state and not try and pay that states sales tax and see if CT will only make you pay the difference; don't pay tax in the state where you purchase...wait and pay CT's alone.

[This message has been edited by Aquavir (edited May 18, 2001).]
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Old 05-19-2001, 12:22 AM   #8
Retsyn
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Yep, NH rules! Everyone else in NE pays our taxes for us. Buying booze and travelling our highways. Plus the retailers along the border do a fantastic business on those big ticket items.
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Old 05-19-2001, 12:44 AM   #9
rkkwan
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I live in RI, and the car is registered here. However, I bought the car in MA, and in the paperwork, the breakdown is that I paid the 5% sales tax to MA, and then 2% to RI (which has a 7% sales tax rate).

I am kind of surprised that this is the way it works, but the dealer is just across the stateline and does a lot of RI business, so I assume they know the rules.
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