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Old 07-29-2007, 04:18 PM   #1
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MG911's Avatar
2005 28' Safari
Saskatoon , Sk.
Join Date: Jul 2007
Posts: 74
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Canadians: Investigate state sales tax policy!

I recentlty purchased a 2005 Safari from a couple in Michigan in a private deal (not a dealership). In preparing for all scenarios, I phoned the Michigan DMV twice to verify what would be required to transport the trailer home to Sask. Both times I was told that I could simply pick up an "In Transit" temporay cardboard plate for $10 and I would be good to go back home and that it would be recognized to the border. On the Canadian side, I knew all I needed was my temporary Sask. insurance card.

When it came to the actual transaction, this was not the case at all. I showed up at the Michigan DMV with the owner (just in case), clear title document, bill of sale, my 7 day Sask. insurance card, etc. etc. I was told by the clerk that 6% Michigan Sales tax would be due as I was exporting the trailer out of country. In my case, this amounted to over $2000 - Yikes!

I was prepared to pay 5% Sask. tax and GST when I registered the trailer and got plates back home but NOT in Michigan also. Anyway, I knew I was insured back home and decided to make the trip with my temporary insurance card in the rear window and without the Michigan permit. All went well and it didn't raise any red flags with the troopers.

2 phone calls to the DMV and never once was I told about having to pay a local state tax. I don't know if this has happened to anyone or if this was simply a misunderstanding by the clerk I was dealing with but just be prepared.

The whole temporary transit permit seems to be a 'grey' area according to almost everyone I talk to, including my local insurance expert. Anybody else have this experience??
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