Aids HIV FAQ

Car Tax Question Out of State?

Question:

The original message said he paid a "registration fee on the value of the car, which decreases every year".  But of course, if you included this in your reply because you would look like the fool.  You wouldn’t be deliberately twisting the facts by mis-quoting, would you? – Hide quoted text — Show quoted text ->In Virginia we call your >"registration fee" a personal property TAX, paid to the county.  This is >deductible as a "local tax" on the Federal income tax. > Oh, REALLY?  Have you ever read the IRS rules about this?  Regardless of what > it’s CALLED, if the registration is based on property value, then it IS > deductible as a tax.  If it is the required payment to operate the vehicle, then > it IS NOT a tax and is also NOT DEDUCTIBLE.  You may be able to get away with > this in SOME states, but not all.  Wisconsin and Ohio, for instance, do NOT base > registration fees on value.  It’s the same for all vehicles of a type (Auto, > Truck, Farm Truck, Motorcycle, etc.) and we therefore get no tax break from it. > — > C.R. Krieger > "Ignore ‘em, m’dear, they’re beneath your dignity."  -W.C. Fields

Response:

>In Virginia we call your >"registration fee" a personal property TAX, paid to the county.  This is >deductible as a "local tax" on the Federal income tax.

Oh, REALLY?  Have you ever read the IRS rules about this?  Regardless of what it’s CALLED, if the registration is based on property value, then it IS deductible as a tax.  If it is the required payment to operate the vehicle, then it IS NOT a tax and is also NOT DEDUCTIBLE.  You may be able to get away with this in SOME states, but not all.  Wisconsin and Ohio, for instance, do NOT base registration fees on value.  It’s the same for all vehicles of a type (Auto, Truck, Farm Truck, Motorcycle, etc.) and we therefore get no tax break from it. — C.R. Krieger "Ignore ‘em, m’dear, they’re beneath your dignity."  -W.C. Fields

Response:

I live in NH and here’s how it works.  You pay a registration fee each year for your car (not a property tax).  The fee is based on the value of the car and goes down each year.  You pay this fee no matter where you bought the vehicle. If you buy the vehicle in MA and pay their sales tax, you still pay the NH registration fee.  However, if you are already a NH resident, all MA dealers can write up the sales agreement to say that the car was delivered to NH and thereby avoid the MA sales tax.  This is done all the time – otherwise, MA dealers would lose out on NH customers. If you’re still a MA resident, then you’re out of luck. RCW

Response:

In NH, the auto registration is in two parts: a fee based on weight to the Dept of Safety (DMV) in Concord; and a fee to the town or city of residence (commonly called the "Town Tax") based on value of the vehicle. Usually, the entire transaction can be handled by the town or city clerk in your (NH) municipality. I believe the sales tax in Massachusetts is usually collected by the Registry of Motor Vehicles when you register the vehicle, thus no sales tax collected by the dealer. – Hide quoted text — Show quoted text ->I am moving to New Hampshire which has no sales tax but a vehicle >property tax.  If I buy a car in another state from a dealer, does that >dealer have to charge me that state’s sales tax.  For example, say I buy >a car in Massachusetts and register it in NH do I pay both Mass sales >tax and NH property tax? >The problem is that I’m looking at buying a used car and NH is such a >small state that its hard to have the selection and deals in larger >areas. >Thanks, AT

Response:

> I live in NH and here’s how it works.  You pay a registration fee each > year for your car (not a property tax).  The fee is based on the value > of the car and goes down each year.  You pay this fee no matter where > you bought the vehicle.

How is this not a tax? Unless it is a play on words to deprive you of a tax deduction on your Federal income tax.  In Virginia we call your "registration fee" a personal property TAX, paid to the county.  This is deductible as a "local tax" on the Federal income tax. – Hide quoted text — Show quoted text -> If you buy the vehicle in MA and pay their sales tax, you still pay > the NH registration fee.  However, if you are already a NH resident, > all MA dealers can write up the sales agreement to say that the car > was delivered to NH and thereby avoid the MA sales tax.  This is done > all the time – otherwise, MA dealers would lose out on NH customers. > If you’re still a MA resident, then you’re out of luck. > RCW

Response:

>How is this not a tax? Unless it is a play on words to deprive you of a >tax deduction on your Federal income tax.  In Virginia we call your >"registration fee" a personal property TAX, paid to the county.  This is >deductible as a "local tax" on the Federal income tax.

I don’t care what you call it.  I’m certainly not claiming that it’s not a tax.  Why are you jumping on this? The guy is going to buy a car and I’m just telling him what he can expect to have to shell out.  Jeesh. RCW

Response:

Hi, I live in IL and brought my 99.5 A4 in MO and the dealer processed my Tags and Title for me.  The dealer collected taxes base on the IL rate and provided a check to the State of IL to pay the IL state sales tax on the vehicle.  The way the state of IL works their sales taxes on new vehicles and vehicles that have been brought in to the state that are less than one year old is you must show what you paid for sales tax when you purchased the vehicle.  If the tax is less than IL taxes you must pay the difference.  Very simple and straight forward method. I know of pleople who have gone to different states to buy cars and have told the dealer that they are going to register the car in another state (their home state) because the tax rate is cheaper.  In this case the dealer provides them with the necessary papers and if it is a new car the Certificate of Origin That is required for the first time Title and Tag process.  Then they pay all the taxes and fees themselves. Hope this give you some insight on how other states do it. LogOne 99.5 A4, 2.8 QT Hibiscus Red/w Slate gray interior * Sent from RemarQ http://www.remarq.com The Internet’s Discussion Network * The fastest and easiest way to search and participate in Usenet – Free!

Response:

I am moving to New Hampshire which has no sales tax but a vehicle property tax.  If I buy a car in another state from a dealer, does that dealer have to charge me that state’s sales tax.  For example, say I buy a car in Massachusetts and register it in NH do I pay both Mass sales tax and NH property tax? The problem is that I’m looking at buying a used car and NH is such a small state that its hard to have the selection and deals in larger areas. Thanks, AT

Response:

> I am moving to New Hampshire which has no sales tax but a vehicle > property tax.  If I buy a car in another state from a dealer, does that > dealer have to charge me that state’s sales tax.  For example, say I buy > a car in Massachusetts and register it in NH do I pay both Mass sales > tax and NH property tax? > The problem is that I’m looking at buying a used car and NH is such a > small state that its hard to have the selection and deals in larger > areas. > Thanks, AT

No way you should have to pay sales tax twice, you will pay it once for the state in which you live/transfer the title in. —                     *** Rick Jones ***     Toyota Master Diagnostic Technician/ASE Master/L-1        http://pweb.netcom.com/~ssauer40/webpage.htm "SECOND PAGE" http://pweb.netcom.com/~ssauer40/second.html   *** What it takes to be a modern day liberal democrat! *** You believe that the AIDS virus is spread by lack of funding; the school teacher who cant teach fourth graders how to read is qualified to teach your kids about sex; trial lawyers are selfless heroes and doctors are overpaid; you believe guns in the hands of law abiding Americans are more of a threat than nuclear weapons in the hands of the Red Chinese; global temperatures are less affected by cyclical documented changes in the sun and more affected by SUV’s; you believe business creates oppression and governments create prosperity; the military, not corrupt politicians start wars; there was no art before federal funding; the NRA is bad because it stands up for certain parts of the constitution, while the ACLU is good because it stands up for certain parts of the constitution; you believe Tubman, Chavez and Steinem are more important to American history than Jefferson, Washington and Edison; you believe conservatives are racist, yet think minorities couldn’t make it without your help; you believe socialism hasn’t worked yet because the right people haven’t been in charge yet; self esteem is more important than actually doing something to earn it; and finally, you are against capital punishment, but for abortion on demand, in short, you support protecting the guilty, while killing the innocent!

Response:

Yep.  You only have to pay the tax where you register the vehicle. Moving is a different matter.  I moved from Illinois to Indiana and got taxed twice on my lease; Illinois was all up front, but Indiana adds 5% to your payment automatically.

– Hide quoted text — Show quoted text -> I am moving to New Hampshire which has no sales tax but a vehicle > property tax.  If I buy a car in another state from a dealer, does that > dealer have to charge me that state’s sales tax.  For example, say I buy > a car in Massachusetts and register it in NH do I pay both Mass sales > tax and NH property tax? > The problem is that I’m looking at buying a used car and NH is such a > small state that its hard to have the selection and deals in larger > areas. > Thanks, AT > No way you should have to pay sales tax twice, you will pay it once for > the state in which you live/transfer the title in. > — >                     *** Rick Jones *** >     Toyota Master Diagnostic Technician/ASE Master/L-1 >        http://pweb.netcom.com/~ssauer40/webpage.htm > "SECOND PAGE" http://pweb.netcom.com/~ssauer40/second.html >   *** What it takes to be a modern day liberal democrat! *** > You believe that the AIDS virus is spread by lack of funding; > the school teacher who cant teach fourth graders how to read > is qualified to teach your kids about sex; trial lawyers are > selfless heroes and doctors are overpaid; you believe guns in > the hands of law abiding Americans are more of a threat than > nuclear weapons in the hands of the Red Chinese; global > temperatures are less affected by cyclical documented changes > in the sun and more affected by SUV’s; you believe business > creates oppression and governments create prosperity; the > military, not corrupt politicians start wars; there was no > art before federal funding; the NRA is bad because it stands > up for certain parts of the constitution, while the ACLU is > good because it stands up for certain parts of the constitution; > you believe Tubman, Chavez and Steinem are more important to > American history than Jefferson, Washington and Edison; you > believe conservatives are racist, yet think minorities couldn’t > make it without your help; you believe socialism hasn’t worked > yet because the right people haven’t been in charge yet; self > esteem is more important than actually doing something to earn > it; and finally, you are against capital punishment, but for > abortion on demand, in short, you support protecting the guilty, > while killing the innocent!

Response:

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