Out of state purchase, sales tax and registration

[John1048]

I am a Texas resident, purchasing a used Interstate motor home in Florida next week from a dealer. I assume I do not pay sales tax in Florida but to Texas when I return. However in searching the forum I have seen discussions regarding Florida DMV collecting reciprocal states sales tax at time of purchase.

I have never experienced such and do not know if Texas is a reciprocal state.

Would anyone know how this process works?

And if I register and pay sales tax in Texas what documentation will be needed by Texas?

Any help will be greatly appreciated.

[TX-Newbie]

Originally Posted by John1048

I am a Texas resident, purchasing a used Interstate motor home in Florida next week from a dealer. I assume I do not pay sales tax in Florida but to Texas when I return. However in searching the forum I have seen discussions regarding Florida DMV collecting reciprocal states sales tax at time of purchase.

I have never experienced such and do not know if Texas is a reciprocal state.

Would anyone know how this process works?

And if I register and pay sales tax in Texas what documentation will be needed by Texas?

Any help will be greatly appreciated.

Hey John

I just went through this. Bought my AI in Mississippi. The dealer should calculate Texas state taxes for you. If you are financing, they will work it into the final cost and you'll finance the total including taxes. They will then cut you a check back for the taxes since you'll have to pay those when you register the vehicle in Texas.

How this helps.

[TX-Newbie]

BTW. I forgot. They should also have the Texas title paperwork all filled out and ready for you to sign

[Martee]

I assume the used Interstate will be fully paid off, and the seller will simply sign over his Florida title to complete the transfer over to you. Keep a copy of your personal check or bank cashier's check to document final sales price.

For residents of TEXAS, a 6.25% sales tax rate is assessed so you need to pay the difference between Florida and Texas. Credit is allowed by Florida for expected future tax paid in Texas. Likewise, Credit is allowed by Texas for tax paid in Florida. This is the reciprocal policy. Tax is calculated on the sales price of a new or used motor vehicle. Occasional or isolated sales are NOT exempt.

You will pay Texas sales tax to your local Texas county upon vehicle registration, and they will take the Florida title and convert to a Texas title. Don't forget you will also need insurance and inspection in Texas. Texas will then mail you in 2 weeks a Texas title to the address on your Texas DL.

[Lily&Me]

I would contact Texas DMV, for the best information as to what you need, what you need to do, and where you need to do it.

Maggie

[Alex AVI]

Originally Posted by John1048

I am a Texas resident, purchasing a used Interstate motor home in Florida next week from a dealer. I assume I do not pay sales tax in Florida but to Texas when I return. However in searching the forum I have seen discussions regarding Florida DMV collecting reciprocal states sales tax at time of purchase.

I have never experienced such and do not know if Texas is a reciprocal state.

Would anyone know how this process works?

And if I register and pay sales tax in Texas what documentation will be needed by Texas?

Any help will be greatly appreciated.

JOHN1048 - Yes, exactly what TXNEWBIE said. Just to add to tax collecting process, coz it all depends on state you purchase from and state it is being registered in. Other states may still or may not collect taxes at time of purchase even if they know it will be registered in a different state. If they collect taxes on your behalf, that will be credited as "sales tax" paid by the DMV in the state you register in. If they do not collect sales tax, DMV in the state you register in will collect full sales tax. If the dealer collected lesser sales tax than in the registering state, the DMV will collect the remaining underpayment. If the purchased from state has a higher sales tax and collects it, you may have to chase the overpayment/refund or some states will give you option for credit that applies to other/future fees. That is why it is best to make sure your documentation is very clear on how much sales tax you paid to the purchased from dealer (the rate AND amount printed out), regardless of who collected it. Bottom line is you would be made whole regardless - you would pay no more or no less sales tax than if you bought it locally.

[John1048]

You bring up another point I overlooked: inspection. Hadn't thought of that. Yet another quest. Thank you.

One of the biggest selling points in my mind to buying an Airstream is this forum. It is invaluable.

[Mcrid]

I purchased mine in TN from a dealer new. Paid no Taxes in TN. You can print a Temporary permit from http://www.txdmv.gov/motorists/regis...porary-permits

and take with you for the drive back and all the details you need to know are at http://www.txdmv.gov/motorists/buyin...reign-vehicles

[Titus]

Agree it is very state specific. California does not accept reciprocal recognition. We would have paid 8% (I think it was) tax for a sale in Ca. Iowa would have accepted this 8% payment instead of their 5%. To avoid paying the extra 3% we took delivery in Nevada (which has reciprocal recognition) - complete with notarized statement of delivery in NV. What a pain. We flew out to Ca with pre-paid Iowa plates to put on it for the drive home.

[Martee]

Each state can be radically different. When I purchased my 2018 Flying Cloud 25FB trailer from Colonial Airstream in New Jersey; I was required to fill out a NJ tax form stating and confirming the vehicle will be registered out of state. This form removes the liability of the dealer from collecting any NJ sales tax. And because it was new, there was only the raw manufactors title issued by Airstream. Texas then collected sales tax and converted the manufactors title to a Texas title and issued Texas plates. A month later, we then went to New Jersey with our Texas plates and Texas title, and drove the Airstream home.

Again, when I purchased a used vehicle from a car dealer in New Hampshire last year, no tax was collected at point of sale....and upon registration in NY, sales tax was collected by New York DMV and the New Hampshire title converted to NY title and NY plates were issued. We were so rushed during the purchase, we simply forgot to get auto insurance prior to the sale, and drove it home across three states without any insurance and with just a 60-day dealer plate. We were finishing paperwork 20 minutes after they closed, so even the dealer released the vehicle without checking if we had any insurance. And later I found that was a violation of New Hampshire law.

[RandyNH]

Originally Posted by Martee

And later I found that was a violation of New Hampshire law.

Nah, NH doesn't require insurance, at all, that's why I pay for uninsured driver coverage on mine.

What is funny though, is if you drive through MA on your way back, that is illegal as they don't recognize temporary plates from any state.

[Alex AVI]

Originally Posted by Martee

We were so rushed during the purchase, we simply forgot to get auto insurance prior to the sale, and drove it home across three states without any insurance and with just a 60-day dealer plate.

MARTEE - this has happened to me before. But I realized it before vehicle delivery. So I contacted my State Farm agent - they said I was still temporarily covered with my policy since my policy states that my coverage is valid for ANY car I drove (whether it be rental, daughter's, or dad's car ). Of course I never want to test it's validity, so I will never leave the dealership without the actual printed insurance card in hand. Even with rental cars, I still pay the waiver fees just so I can walk away from a totaled car without worrying about which insurance pays. Not sure if all insurance carriers have such provisions/riders. It just made me feel good that had I driven off, I was still covered.

[Tronadora]

Yes, you should be covered for 30 days. I had a chance to test it.

I think I had Safeco a few years ago when my daughter wrecked her new used car on the 28th day. I was about to call my agent that same day to add the car to our policy. I had been stalling to save on premium cost. I don't recall if they started calculating the premium based on date of acquisition or date of phone call.

Now that was an awkward phone call.... "Yes, I'd like to add a car to our policy and also file a claim on that car." It was totaled out (about $4k). They didn't bat an eye about the timing.

[Alex AVI]

Originally Posted by Tronadora

Yes, you should be covered for 30 days. I had a chance to test it.

I think I had Safeco a few years ago when my daughter wrecked her new used car on the 28th day. I was about to call my agent that same day to add the car to our policy. I had been stalling to save on premium cost. I don't recall if they started calculating the premium based on date of acquisition or date of phone call.

Now that was an awkward phone call.... "Yes, I'd like to add a car to our policy and also file a claim on that car." It was totaled out (about $4k). They didn't bat an eye about the timing.

TRONADORA - That is about as good an insurance story I have heard in awhile. You are the only one I know who has had this provision tested. Good to know it actually works. And the 28th day filing is even more amazing - I would've guessed them trying to not pay. The old saying - "doesn't hurt to try, worse they could do is say no"

[Michael_Wild]

I am going to be travelling from Canada to Oregon to buy a motorhome. I will then be keeping it at an RV park in Oregon 90% of the time. It seems I have to be a resident of Oregon for 6 months before I can register a vehicle in Oregon. Are there any exception to this?

[RandyNH]

Originally Posted by planBe

I am going to be travelling from Canada to Oregon to buy a motorhome. I will then be keeping it at an RV park in Oregon 90% of the time. It seems I have to be a resident of Oregon for 6 months before I can register a vehicle in Oregon. Are there any exception to this?

How hard is it for you to use South Dakota instead of Oregon, registration is much easier. I suppose you could still keep it stored in Oregon..

[farafield]

I bought mine in OH and shipped to VT. Ohio has a weird title situation but the dealer in OH explained that to me. Check your state's DMV website for what you need to bring and/or have done before you go to get the registration. In VT we need to run the AS by the state police to get a vehicle id # verification and insurance is not required.

[DJT13]

Just went through this. All you have to do is have bill of sale showing that Florida collected. You might have to pay a small difference. Be sure to have unit inspected before you go to register

[FlStrmr]

If you would like to consider- I am a private seller/owner of a 2018 AI GT in Fl at attractive price. Ads here in Classified, RVTrader, and RVT.

[vintageracer]

If not sure check as stated in earlier posts your state of residence sales tax/registration requirements AND the state sales tax requirements in the state in which you are purchasing the trailer to avoid possibly paying sales tax TWICE on the same purchase.

ALL the states are looking for any way they can get some of YOUR MONEY if a transaction/commerce occurred in their state.

Example:

Because of all the January classic car auctions in Arizona the laws in Arizona now dictate you pay taxes and possibly registration depending upon where you pickup (take physical possession) of the vehicle/trailer you purchase from a dealer. IF you are an individual (not a licensed dealer) purchasing a car/trailer from an Arizona licensed dealer and take physical possession of the vehicle/trailer in the State of Arizona you will pay Arizona state sales tax to the dealer in Arizona. You may or may not get credit for that sales tax payment in your state of residence. If you ship the vehicle/trailer with a ICC REGISTERED shipper to any location outside the State of Arizona you will pay sales taxes and registration in your state of residence or wherever you intend to register the vehicle/trailer.

Tennessee where I live is a sales tax driven state yet a dealer collects sales tax if any on a vehicle sale depending upon where the vehicle will be registered. Keep it in-state and you pay sales tax to the dealer in Tennessee (seller) just like any other retail transaction. Register that vehicle out of state with the dealer filling out the title/paperwork with your address outside Tennessee and you pay sales tax/registration there. A camper trailer tag is about $35.00/year in Tennessee. You can no longer use the Tennessee Lifetime "SEMI" trailer tag on a RV trailer anymore. We have no personal property tax in Tennessee on vehicles or trailers.

A call the County Clerk or their equivalent in the county of the state in which you are purchasing a vehicle/trailer within and the same call to your local County Clerk can generally resolve any questions you will have about transport, registration and sales tax you will have with any out of state purchase.

Better to know on the front-end than ask for forgiveness to the officer or court official.