Out of state purchase

[mdineen]

I purchased in TX but live in NM. The total sale was more than cost of car so I know I paid some taxes. I don’t currently have access to the paperwork but it just hit me. Do I have to pay taxes again when I register it? @StephenCantrelle ? Can you help? I have to register soon. I sent you an email.

 

[SC300ES]

No. You pay sales tax only once. Should have charged you NM tax.

 

[StephenCantrelle]

I purchased in TX but live in NM. The total sale was more than cost of car so I know I paid some taxes. I don’t currently have access to the paperwork but it just hit me. Do I have to pay taxes again when I register it? @StephenCantrelle ? Can you help? I have to register soon. I sent you an email.

You only pay taxes once. Talk soon.

 

[First Light]

No. You pay sales tax only once. Should have charged you NM tax.

"Only once" - not necessarily. If NM sales tax is lower than your state, your state will charge you the difference.
Say NM taxes are 5% and your state tax is 7%. You will subsequently pay your state the difference - ie an additional 2%.

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[SC300ES]

The reason why they should charge him based on his home state like I said

 

[alexdrums]

"Only once" - not necessarily. If NM sales tax is lower than your state, your state will charge you the difference.
Say NM taxes are 5% and your state tax is 7%. You will subsequently pay your state the difference - ie an additional 2%.

But you still are paying the same amount for the vehicle as if you had purchased it in your home state, correct?

 

[StephenCantrelle]

Yes dealer should use house address to get proper taxes. If when you go to the DMV to pick up plates the tax amount is more that difference is owed at that point.. If less than DMV will cut check to client. But at no point are you double charged taxes.

This is if you are financing... If paying cash Dealer does not need to collect Taxes and you simply pay straight to your local DMV

 

[First Light]

Yes dealer should use house address to get proper taxes. If when you go to the DMV to pick up plates the tax amount is more that difference is owed at that point.. If less than DMV will cut check to client. But at no point are you double charged taxes.

This is if you are financing... If paying cash Dealer does not need to collect Taxes and you simply pay straight to your local DMV

^ This.

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[alexdrums]

Yes dealer should use house address to get proper taxes. If when you go to the DMV to pick up plates the tax amount is more that difference is owed at that point.. If less than DMV will cut check to client. But at no point are you double charged taxes.

This is if you are financing... If paying cash Dealer does not need to collect Taxes and you simply pay straight to your local DMV

But then you would be paying in full before delivery, right? I am assuming you don’t accept COD!

 

[StephenCantrelle]

But then you would be paying in full before delivery, right? I am assuming you don’t accept COD!

If paying cash(*by check) yes dealer will wait for funds to clear before Telluride leaves lot

 

[First Light]

If paying cash yes dealer will wait for funds to clear before Telluride leaves lot

^ I think you meant to say "If paying (by) check." No one waits for cash to clear.

 

[StephenCantrelle]

^ I think you meant to say "If paying (by) check." No one waits for cash to clear.

Yes your right.. Haha

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[markjenn]

There are 50 x 50 possible combinations of buying in a different state than you live in and while most of the time you end up paying just your “home state” taxes, it’s not universal.

Some states allow dealers to charge no tax (you pay when you register in your home state), some charge your home state rate (and you hope they get the paperwork right so you don’t get double-charged later), and some charge the dealer state rate which your home state may (or may not) credit you later when you register in your home state. In my home state (WA), the DMV requires you pay WA taxes when you register the car but will give you credit for taxes paid in another state. BUT they will NOT cut you a check if the dealer state charged more than WA - you’re SOL in this case. So there is not a single answer - you have to investigate your particular situation.

I bought a car in TX in 2003 and they charged me no sales tax and I paid it when I registered when I got home. That’s the best situation as it keeps the money in your pocket. But things may have changed.

Frankly, it’s just a ridiculous situation having 50 different taxing/titling/registration systems and the dealers protect the status quo viciously as they do not want customers shopping on a national stage where they’d have to price compete with dealers all across the nation. Only mfg actively trying to break this system? Tesla.

- Mark