Transporting a new purchase

[Don Bradner]

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