im planning to buy an Evo from Connecticut and register it in New York State (im a NYS resident)....would I be paying the sales tax to the NYS DMV outta my own pocket or would I be able to roll the sales tax into the car loan? thanks

 

You would pay it out of pocket to the DMV upon going to get your tag. You cant pay sales tax in CT and expect it to get paid to NY. Just so you know.



-Sayajin

 

As far as I know, you pay sales tax to the state where the vehicle will be registered. At the time of the purchase, they will calculate it and all the costs (Car, tax, title, license, etc.) are lumped together for financing purposes.

 

yup, kinda keeps us from cheating the system just that little bit

 

I am a PA resident but bought my car in San Antonio, Tx. At the dealership they asked me if I wanted TX or PA plates - PA all the way though I physically live in TX due to Uncle Sam, plus PA has cheaper sale tax. It all depends where you want to register it, just tell the dealer.

 

Off topic here, but close enough for me to dig up this thread... as it was the only thread mentioning Sales Tax in my search results.

Ok, say I buy a used Evo for $20k from a private seller who has it paid off and title in hand. I have the $20k check and won't be getting any loan or anything. On the back of the title, atleast here in Ohio, there is some information you have to fill in, like Mileage on the odometer and selling price.

I've heard some people have done this, but say, as a condition of the sale, I want the seller to write on the title that he sold it to me for $1, eventhough I give him 20k. Then when I go to register at the dmv I pay sales tax on $1 (5cents) and not $20,000 ($500). Do I say it was a gift from him? Do they investigate?

Is this tax fraud? Punishable by what? I've heard of people doing this, but I'm not sure of the specifics.
Anybody got first hand experience?

THanks,

 

I know certain states like NJ in that are exempt from the sales tax when you register at your local dmv if the car is given as a gift. That seem so ambigious, but saving 6% on a 30k far is worth it to me. I am going to call up my local dmv and figure out what exact paperwork is needed to try and make that happen.

 

evoingr - for used cars, i believe tax is usually based on the appraised value of the car, not on what you'd paid for it. that's how it works in CO anyway.

 

Yea I should have specified untitled/new car.

 

Stupid Question....

 

excellent answer! thanks for your help, d1ck.


i know it sounds like fraud, but i was wondering if any lawyers/law students would chime in with details.

 

I think i'd be considered more "tax evasion" and not "fraud". The problem lies in the fact that you are buying a newer model car for pennies or the fact that someone, who has no relation to you whatsoever, gave it to you as a gift. It could raise some red flags. If it does and they do investigate, you could be looking at fines and possibly jail time. Do they pay attention? Who knows? I'd be more comfortable doing this on an older vehicle worth <$5K..
my .02

 

i just bought an evo private party. and yeah they ask you what you paid and go off of that, but in MN if the number looks low they'll go off a KBB or NADA value






P.S. know this cause i got a pretty good deal, red 03 14,000 miles for $21,000. the lady had the KBB value already infront of her and asked about the price

 

Here in PA you used to get away with that. Now they look up the value of the car being sold and if there is a huge difference in the selling price and the value of the car, you are required to explain the low selling price by a written letter (I think)

 

that is true. they will look up the value in PA. I bought a beater for $2k a couple years ago. the blue book was $4200. the seller and I went to register it to me and I told them I paid $1k so I didn't have to pay as much in taxes. I had to have a reason aka excuse for it - the seller told them there was a major mech problem that the car barley ran and they accepted that. Now a $20k evo for a dollar.....not going to fly.