Transporting a new purchase

[Don Bradner]

I checked the NJ laws, and they are similar to California:
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When goods and services are purchased in another state and sales tax is paid to
that state, New Jersey will
allow a credit against the use tax due, provided that the other state allows a
similar credit for sales tax paid
to New Jersey. If the sales tax rate in a reciprocating state is equal to, or
greater than, New Jersey.s 7% tax
rate, no use tax is due.
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The only difference is that they require the other state to have similar rules,
while California allows the credit regardless.

Not completely germane to this question, but to complete the California use tax
story: California has an odd rule for residents that says if you take
out-of-state delivery and stay out of California for 90 days, you can avoid the
sales tax completely. Includes airplanes and yachts. That law was changed in
2004 to make it nearly impossible, but the law had a sunset clause that ran out
June 30th of this year, and the law was not renewed, so it is back to the old
days where 90 days out will do it.

On 12/6/2007 at 3:15 PM Don Bradner wrote:

>You may not be able to imagine folks paying double, but it does happen.
>Sales taxes are completely within the control of the states.
>
>Some states have reciprocal agreements, some do not. For those that do
>not, it does not necessarily mean you have to double-pay, but it could.
>
>I am most familiar with California, which has no reciprocals with any
>other state. What they do allow is a credit for any tax paid elsewhere on
>the sale.
>
>I am in an area where the rate is 7.25%. I once bought an RV in Arizona
>and wanted delivery there, so paid a bit over 8% sales tax. As a result, I
>did not owe California anything for sales/use tax.
>
>If I bought one somewhere with 6% tax, I would owe California 1.25%.
>
>If you take delivery of a vehicle in California (from a dealer), you owe
>sales tax. Since there are no reciprocals, it is possible some other state
>might not give you any credit for that.
>
>All of the California dealers have arrangements with notaries in bordering
>states; their driver takes it to Laughlin, or Yuma, or wherever, and you
>take notarized possession and no sales tax is paid to California.
>
>When buying from a private party, these issues generally don't arise. You
>don't pay tax to the seller, and you do pay tax when you get home.
>
>Because of that, and the fact that dealers know all about the laws of
>their own state, I would not spend a lot of time worrying. If you buy from
>a dealer, ask how it is handled there. If you buy privately, just get a
>Bill of Sale (I would have it notarized) and drive away.
>
>Don Bradner
>90 PT40 "Blue Thunder"
>Eureka, CA
>
>On 12/6/2007 at 10:48 PM Gardner Yeaw wrote:
>
>>Shane,
>> In New Jersey you pay the tax when you register it. So I need to
>>find out what other states require so I don't pay TWICE. There must
>>be some kind of system to handle these kinds of transactions. I
>>can't imagine folks paying double tax.
>>
>>Gardner
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