Out of state purchase

[Flht2k]

Just experienced CA DMV new trailer registration process. I thought I would share. Purchased our stream in Az, they provide 90 day temp registering permit. Used the few days for inspecting and getting to know the trailer as I headed back to CA. Decided to finally get the stream licensed and registered today. I was aware that when buying from out of state, you will need to pay the difference in taxes. In my case AZ is 5+ % and my area is 8.75%. So keep that in mind. I made an appointment and arrived on time. I had the title and money ready to go. I was approached by our friendly DMV person and was told I needed to fill out another form to change title. No problem and filled it out. First person in line and approached the counter. Went smoothly until she told me the amount. Evidently, CA has a 20 day register timeline, since I was not informed, nor did I find anything from the website, I was shocked. I was in CA for 50 days but we'll within the 90 days, my penalties equaled $1000. Ouch. I explained my situation she had me sign a form explaining the issue and she proceeded to present it to her supervisor. The supervisor lifted her head above her cubicle and whispered merry xmas. Wow that was great. But still not out of woods, now I was told that I needed a vehicle vin verification form signed and dated. You will need your trailer at the DMV for this process. If not, a peace officer or a licensed vin verify person will do. Most auto, large trucks stores or even other rv stores can assist. Well after 6 hours, my journey ended successfully.

Checklist
Have the money to pay for taxes and registration
Register within 20 days
Complete forms for title transfer from one state to the next
Have trailer vin verification forms filled out and signed

Hope this helps

Time to enjoy my new toy, something had to replace my harley

[Rich W]

That tax difference applies only to states with reciprocal agreements and not all states reciprocate. Usually, bordering states do, but it's an agreement between them. I know that KY and Florida have a reciprocal agreement so states don't have to border one another. It's always good to check.

In KY I think it's 10 days to get your vehicle registration changed over but they don't penalize you at the DMV, it has to be a police officer seeing you on the road. Your paperwork, bill of sale etc., needs to be there too. I had to have mine inspected by the state. You have to make an appointment and he comes to you, inspects for fire extinguisher, CO2, smoke and CO detectors, escape hatch, LPG couplings and other things. Then you get a certificate of compliance to take back to the DMV and a nice shiny sticker for your trailer, which doesn't have to be placed anywhere.

Every state's different, good to check with the DMV before your purchase of any vehicle. A phone call can be the difference between a good and a bad one.

[idroba]

In addition, states like AZ often have local sales tax add ons for the sale. So, even though the state sales tax is x% you pay y% when you take delivery of the trailer. That can be as large as 3 to 3.5% additional. It is not considered when you take the trailer into your own state (even with reciprocal arrangements). The local area will not refund the money. So for example:

State where you buy trailer sales tax 5%
State where you buy trailer local sales tax 3%
You pay, on trailer purchase 8%


Your own state sales tax 8%
Credit for what you paid in other state 5%

You owe to your own state 3%

Additional tax this cost you 3%

3% of say $80,000 $2400

Cost of going to get trailer (round trip) $1000 ??? varies of course

Total extra cost could be $3500 or more

This is one reason I found buying my 2014 20' FC was best in my home state.


So, look very carefully at the reciprocal sales tax arrangements if there is a local sales tax involved.

[Rich W]

Originally Posted by idroba

In addition, states like AZ often have local sales tax add ons for the sale. So, even though the state sales tax is x% you pay y% when you take delivery of the trailer. .

Excellent point. Tennessee has no state income tax but they have a higher sales tax and they allow local municipalities to tack on additional tax on purchases. I didn't know that would apply to vehicles as well, always thought it was just for other purchases.

Moral: Always do your research before putting your money down.

[Denis4x4]

I've purchased two RV's (including our AS) in California and taken delivery in Yuma AZ with a 10 day pass. Registered in Colorado with a 4.9% sales tax. Buy a used late model TV that does not comply with CA smog laws and see what that costs you to register!

[switz]

Mesa, AZ dealer received 8.9% sales tax. Went to indiana for plates and was credited in full for the 7% Indiana Sales tax. However the Excise Tax that is based upon the base price, goes down slightly every year, was over $1,400.

[Rgentum]

Similar Issue: Sales Tax on Trailer Purchase upon Trade-in

I had a 5th wheel trailer I wanted to trade-in on an AS. I'm in WA & am subject to 9.5% sales tax (& no income tax). I was trading-in the 5th wheel to an Airstream dealer in CA, which has a similar sales tax amount (as well as its own income tax).

Problem: Unlike most states having a sales tax, including WA, CA and several other states calculate their sales tax on the value of the purchased item only, ignoring the value of any trade-in item. Furthermore, the state in which the sales tax is determined is the state in which the purchased item is delivered to its buyer. Therefore, if I took delivery of the AS at its CA dealership, I would have to pay to CA its sales tax based solely on the value of the AS, ignoring the value of my trade-in.

Solution: I delivered the 5th wheel to the dealership in CA & paid the dealership a fee to drive the AS to Reno, NV, which has no sales tax. I then drove the AS home to Seattle & promptly registered it & paid WA sales tax on the difference between the purchase price of the AS & the trade-in value of my 5th wheel --- savings thousands of $$$ of CA sales tax, at a small cost to drive the AS from CA to NV.

[paiceman]

Huh, in PA if one buys a vehicle out of state, ie AS from Colonial in NJ one pays no sales tax to NJ, but upon registration pays the full sales tax of the county one lives at in PA. I've done this on probably 20 Harleys over the years, a couple of trailers and some cars/trucks.

Bud

[Thiatt55]

I went the route of an LLC in Montana.....

So far 2 trucks and 2 Airstreams....

Sales tax $0

Priceless.

Of course difficult, not impossible, to finance purchaseS held in an LLC.

[dames7]

Here is a way to do it, go to a state that has No or little TAX and open up a mail box at a UPS store, the address of the store will give you a box number #xxxx and you use the street address with #xxx as your address in that state, they will send you your mail when you ask for it.

Being done all the time, a ton of CA people do this.

[polarlyse]

Since we're talking taxes here I traded my truck on a new one while traveling west in August. We were visiting in Kansas and made the trade at a dealer local to where we were visiting. Kansas provides a 30 day temporary tag for transit but the dealer did me a favor and mistakenly ( ahem) gave me a 60 day since we were continuing our trip westward. Kansas also has a 10% sales tax that they did not charge me since we were taking it out of Kansas. Our temp tag expired while in New Mexico so I put our own tags on it for the remainder of the trip with hopes that any police encounters would work itself out in our favor. Fortunately did not have to try that one out. Once at home we also have a time limit for registration but the DMV people did not ask and I didn't tell. I did ask about the sales tax. Specifically IF Kansas had hit me for the 10% would NJ refund the difference of 3 % ??? All I got was a laugh on that one so I can assume a NO. So in the end all worked out well.

[tjdonahoe]

Bought my airstream in Tennessee, no notary needed, paid with money transfer, brought it home, paid $184 for permanent lisence all is well....

[idroba]

Originally Posted by dames7

Here is a way to do it, go to a state that has No or little TAX and open up a mail box at a UPS store, the address of the store will give you a box number #xxxx and you use the street address with #xxx as your address in that state, they will send you your mail when you ask for it.

Being done all the time, a ton of CA people do this.

It is done, but you don't want to have a stop where you have to show your drivers license and tow vehicle registration issued in one state with one address, and your trailer registration in your name in another state with a different address.

You cannot be a resident of two states at the same time.

[dames7]

We have duel resident in AZ, I see cars here from all over and TT with AZ plates and their TV from her states, as long your have your legal paper work they don't care.

[InterBlog]

Originally Posted by paiceman

Huh, in PA if one buys a vehicle out of state, ie AS from Colonial in NJ one pays no sales tax to NJ, but upon registration pays the full sales tax of the county one lives at in PA. I've done this on probably 20 Harleys over the years, a couple of trailers and some cars/trucks.

Bud

Are there administrative differences between motor vehicles (including cycles) and trailers? Because we did as you describe above with our AS motorhome - bought out of state, drove it back home to Texas, paid 100% of the applicable sales tax to Texas as part of the registration process. No tax paid to state of origin.

[Tincampers]

We just did that. Bought a TV in Ga. No sales tax paid. I will pay the tax when I register the vehicle in SD. I wouldn't even let them do the title work.

[Rich W]

Originally Posted by dames7

We have duel resident in AZ, I see cars here from all over and TT with AZ plates and their TV from her states, as long your have your legal paper work they don't care.

That doesn't play in Kentucky, can't speak for other states. If you live here and own a car registered in another state you are subject to a pretty stiff fine after 10 days of residence. Kentucky has a personal property tax on vehicles they like to collect. It doesn't mean you won't get caught but if you do you will definitely get fined. Your neighbor may tolerate it for a while but sooner or later they will turn you in. If you have an accident or traffic stop and the paperwork doesn't match, that's going to be a problem.

I'm surprised the insurance companies allow this. My insurance is based on where I live. If I give false information I'd be afraid the company would cancel my policy, not a good thing.

[Rich W]

Originally Posted by InterBlog

Are there administrative differences between motor vehicles (including cycles) and trailers? Because we did as you describe above with our AS motorhome - bought out of state, drove it back home to Texas, paid 100% of the applicable sales tax to Texas as part of the registration process. No tax paid to state of origin.

If you live in one state and purchase a vehicle in another state, tell the salesman. They won't charge you the sales tax nor register it. You'll have to pay to your state when you register.

If you live in one state, purchase a vehicle there, then move to another state, you pay the difference in tax if the states have a reciprocal agreement, otherwise, you pay the full amount. If there is a reciprocal agreement and a small amount of time passes (not sure, but it's like months) you can bring the vehicle in as 'used' instead of new. If there's a difference then it may be even smaller.

[idroba]

Originally Posted by richw46

If you live in one state and purchase a vehicle in another state, tell the salesman. They won't charge you the sales tax nor register it. You'll have to pay to your state when you register.

Not necessarily. Each state has different regulations for sales tax and the selling process, and each home state has different regulations as to what they accept. The only way to know is to check the regulations in EACH state, selling and home, prior to purchase. That way you will not be stung.

As an example, I have a place in AZ for winter use but my home state is Idaho, where my vehicles are registered and my drivers license is issued.

I traded my car in AZ and had to pay the AZ state and local sales tax to even get the car off the lot. Then the temporary license got me home, where the AZ/Idaho reciprocal sales tax agreement on the state part only. Idaho told me I had paid more sales tax than they would have charged, but it was something I could not get out of.

In 2013 I considered buying an Airstream in AZ, but the additional local add on sales tax, which could not be gotten out of, killed the sale. I had learned from the car experience. AZ wants full state and local sales tax (where the dealer is located) on any vehicle sold in the state, no matter where you live and will take it.

See my post earlier in this thread.

Again, each state, home and selling, has different regulations. No one blanket answer will work of the question. You must check the two specific states you are dealing with to know.

[Rich W]

Originally Posted by idroba

Not necessarily. Each state has different regulations for sales tax and the selling process, and each home state has different regulations as to what they accept. The only way to know is to check the regulations in EACH state, selling and home, prior to purchase. That way you will not be stung.
[snip]
Again, each state, home and selling, has different regulations. No one blanket answer will work of the question. You must check the two specific states you are dealing with to know.

I didn't think they could tax you on a vehicle purchase if it was an out of state buyer and would be taking the vehicle to another state for registration. I've done this a couple of times and my experience was as I stated, the salesmen were happy they didn't have to do the forms.

Always good advice to check with the local authorities on their practices.