Purchasing car in one state, registering it in another

Squawks · 07-13-2006, 11:16 AM

I have been pondering about just buying a car here in California and using it for the cross-country roadtrip to New York, which will be my new residence.

I was wondering if anybody has additional information or insight into this - firstly, if I purchase the car here in California I am certain I will have to pay the state sales tax (~7.75%) along with the registration. But once I arrive to New York, and then register my vehicle in New York will I additionally have to pay the New York sales tax (~8.25%) as well on top of the CA tax I already paid?

Or, should I do something to go around the bush and somehow purchase the car here in CA with New York registration/tax? Is that even possible?

Thanks all in advance!

espo · 07-13-2006, 11:23 AM

Well to drive the car to New York you would have to have the car registered in some state... You need to have an official residence in a state (and possibly a drivers license from that state) to register a car in a given state.

If you do register the car in CA, then move to NY and register it here, then you will not pay NY sales tax. You will only pay the registration fee (which is about $60/2 years) and then need to get the car inspected here (about $30 at most places).

Squawks · 07-13-2006, 11:30 AM

espo - thanks for the info!

I am now curious about this scam - what if you used to live in Oregon (no sales tax there) but moved to northern California (~8% sales tax) and decided to buy a car. You buy the car in Oregon and have it registered there (thus paying no sales tax - you also have an Oregon drivers license) - and then just bring the car back home to California where you now live, bypassing the 8% tax!

bostoniant · 07-13-2006, 11:34 AM

If you don't have proof of sales tax payment from another state, then your home state is free to tax you its own sales tax (even though it wasn't purchased there). it's a part of the registration process i believe. you have to submit proof of tax payment.

zz25 · 07-13-2006, 11:35 AM

Quote:

Originally Posted by espo89

Well to drive the car to New York you would have to have the car registered in some state... You need to have an official residence in a state (and possibly a drivers license from that state) to register a car in a given state.

If you do register the car in CA, then move to NY and register it here, then you will not pay NY sales tax. You will only pay the registration fee (which is about $60/2 years) and then need to get the car inspected here (about $30 at most places).

Actually, you WILL pay NY State Sales Tax on the value of the vehicle when you register it in NY. If the vehicle is used, you get it appraised by a dealer (or they can use Bluebook value), and the tax is assessed on that. If you are buying a new vehicle in CA a few days before you leave, you can drive to NY on temp plates without paying CA sales tax; however, the CA dealer will want proof in a reasonable amount of time (somewhere less than 30 days or thereabouts) that you have registered in another state. I have done this in several states. It is very common for people on the East Coast to buy cars out-of-state and register/pay sales tax where they live.

zz25 · 07-13-2006, 11:39 AM

Quote:

Originally Posted by Squawks

espo - thanks for the info!

I am now curious about this scam - what if you used to live in Oregon (no sales tax there) but moved to northern California (~8% sales tax) and decided to buy a car. You buy the car in Oregon and have it registered there (thus paying no sales tax - you also have an Oregon drivers license) - and then just bring the car back home to California where you now live, bypassing the 8% tax!

Most, if not all states, require you to register your vehicle (and pay the appropriate taxes)/change your driver's license within 30 days or so of taking up permanent residence in their state. There are a few exemptions, such as active duty military stationed out-of-state. It is insurance fraud to register your car in a place other than where your primary residence. Of course there are loopholes, such as people who work in a different state, or summer homes in other states, but you get the picture. Otherwise everyone would buy cars and insure their vehicles in the lower cost states.

bostoniant · 07-13-2006, 11:42 AM

Quote:

Originally Posted by zz25

Actually, you WILL pay NY State Sales Tax on the value of the vehicle when you register it in NY. If the vehicle is used, you get it appraised by a dealer (or they can use Bluebook value), and the tax is assessed on that. If you are buying a new vehicle in CA a few days before you leave, you can drive to NY on temp plates without paying CA sales tax; however, the CA dealer will want proof in a reasonable amount of time (somewhere less than 30 days or thereabouts) that you have registered in another state. I have done this in several states. It is very common for people on the East Coast to buy cars out-of-state and register/pay sales tax where they live.

no, no. you're thinking of an ad valorem tax, which is a property tax based on the value of your car. this is different from the sales tax. if you buy it in another state after paying taxes and bring it to NY, Ny won't charge you sales tax. But the county might charge you property tax on the car. If you didn't pay sales tax in CA and bring it to NY, they will charge you sales tax plus any applicable property tax.
ugh, property tax. it's so... unamerican.

Squawks · 07-13-2006, 11:45 AM

zz25 - thanks a lot for the information and for clarifying things.

Are temp plates only valid for a few days at most? That's one brutal drive in such short time!

Squawks · 07-13-2006, 11:46 AM

Bostonian - what the hell?! Property tax on the car? So even if I were to buy a car in NY, it is possible that I would be double whammed with a state sales tax AND a county property tax? Damn!

RichReg · 07-13-2006, 11:47 AM

Guys;
What if you do European Delivery?
Can you register the car in another state when it comes back from Europe? Preferably one with little or no sales tax?

Just curious....

Squawks · 07-13-2006, 11:50 AM

Rich, as said above you have to be a resident of a particular state in order to register it there - otherwise that would constitute fraud. As said already, there are 'loopholes' like vacation homes, working out of state, etc.

RichReg · 07-13-2006, 11:59 AM

Quote:

Originally Posted by Squawks

Rich, as said above you have to be a resident of a particular state in order to register it there - otherwise that would constitute fraud. As said already, there are 'loopholes' like vacation homes, working out of state, etc.

Understood.
I was just wondering if it would be any easier with an E.D. situation because technically, you can register the car yourself since it is considered used when it gets back to the U.S.

bostoniant · 07-13-2006, 12:19 PM

Quote:

Originally Posted by Squawks

Bostonian - what the hell?! Property tax on the car? So even if I were to buy a car in NY, it is possible that I would be double whammed with a state sales tax AND a county property tax? Damn!

Yeah it's bullshit. Usually it's a county-imposed tax, and not a state-imposed. Are you moving to NY permanently or non-permanently? If you just keep your CA tags, the NY authorities will be none the wiser. But if you move into an apartment complex with a garage or you rent a parking space, you will be asked for your tag #, which will freely be shared with the gvt. So if you don't want to give fake info, you could instead have your car titled/registered under a parent's name in CA, and when you get a letter from the state saying it's time to pay up, you check the box that says "the car's not mine, bitches" and if there's room for explanation, say it's parked temporarily in the state.
But if you're moving permanently, you might as well go ahead with the whole NY registration process and take it in the ass like a good american... or a prison snitch.

SoYank · 07-13-2006, 12:25 PM

Quote:

Originally Posted by Squawks

zz25 - thanks a lot for the information and for clarifying things.

Are temp plates only valid for a few days at most? That's one brutal drive in such short time!

All of the temporary plates I've ever had were for 30 days.

I bought a vehicle in Kentucky and then made the mistake of moving to California. I paid the sales tax (5%) in Kentucky and then had to pay the difference between that and the rate in California because the vehicle was less than six months old. I also had to pay weight fees because California considered a private pick-up truck a commercial vehicle.

There are states that will charge you a sales tax and then a personal property tax on vehicles. Virginia did that up until the mid-1990's when they phased out the so-called "car tax". I'm not sure whether it was completely phased out with the change in governors, though. The PPT was based on the value of the vehicle.

Squawks · 07-13-2006, 12:26 PM

Hahahah!

I am not clear on your definition of 'permanent' - I suppose I will be permanent as NY will be my home for 6 years at most.

But from what you are saying bostoniant - I may have to pay the county-imposed tax but I should be clear from NY state sales tax if I register (or re-register) my car in NY?

spydrz · 07-13-2006, 12:27 PM

Quote:

Originally Posted by SoYank

All of the temporary plates I've ever had were for 30 days.

I bought a vehicle in Kentucky and then made the mistake of moving to California. I paid the sales tax (5%) in Kentucky and then had to pay the difference between that and the rate in California because the vehicle was less than six months old. I also had to pay weight fees because California considered a private pick-up truck a commercial vehicle.

There are states that will charge you a sales tax and then a personal property tax on vehicles. Virginia did that up until the mid-1990's when they phased out the so-called "car tax". I'm not sure whether it was completely phased out with the change in governors, though. The PPT was based on the value of the vehicle.

No, it was definitely not phased out completely. Thank you, Mark Warner :mad:

Squawks · 07-13-2006, 12:28 PM

Quote:

Originally Posted by SoYank

I paid the sales tax (5%) in Kentucky and then had to pay the difference between that and the rate in California because the vehicle was less than six months old.

Very interesting - how would the case be handled if you carried this out vice versa - moving to Kentucky from California? The difference would be negative - California would owe you a check?

bostoniant · 07-13-2006, 12:34 PM

Quote:

Originally Posted by Squawks

Hahahah!

I am not clear on your definition of 'permanent' - I suppose I will be permanent as NY will be my home for 6 years at most.

But from what you are saying bostoniant - I may have to pay the county-imposed tax but I should be clear from NY state sales tax if I register (or re-register) my car in NY?

Yeah if you pay CA sales tax on the car, you will definitely be exempt from sales tax in any other state, even Taxachussetts. What county are you moving to? I can see if they have property tax. In Arlington county, VA, it's freakin 5% of the assessed value. That's like between 1000-2000 for a 3 series.

SoYank · 07-13-2006, 12:35 PM

Quote:

Originally Posted by Squawks

Very interesting - how would the case be handled if you carried this out vice versa - moving to Kentucky from California? The difference would be negative - California would owe you a check?

Nope, a tube of KY-jelly.

SoYank · 07-13-2006, 12:37 PM

Quote:

Originally Posted by spydrz

No, it was definitely not phased out completely. Thank you, Mark Warner :mad:

Sorry to hear that.

Squawks · 07-13-2006, 12:47 PM

Quote:

Originally Posted by bostoniant

Yeah if you pay CA sales tax on the car, you will definitely be exempt from sales tax in any other state, even Taxachussetts. What county are you moving to? I can see if they have property tax. In Arlington county, VA, it's freakin 5% of the assessed value. That's like between 1000-2000 for a 3 series.

Thanks, bostoniant - you seem to know your stuff well!

I will be moving to Ithaca, which I believe should be in Tompkins County.

bostoniant · 07-13-2006, 12:57 PM

Quote:

Originally Posted by Squawks

Thanks, bostoniant - you seem to know your stuff well!

I will be moving to Ithaca, which I believe should be in Tompkins County.

looks like you're in luck squawks. tompkins county doesn't appear to have a personal property tax. woooo

07-13-2006, 11:16 AM	#1
Squawks One of my two dachshunds: 53 Rep 663 Posts Drives: B6 A4 3.0 Quattro Join Date: Aug 2005 Location: Ithaca, NY iTrader: (0)	Purchasing car in one state, registering it in another - any added costs? I have been pondering about just buying a car here in California and using it for the cross-country roadtrip to New York, which will be my new residence. I was wondering if anybody has additional information or insight into this - firstly, if I purchase the car here in California I am certain I will have to pay the state sales tax (~7.75%) along with the registration. But once I arrive to New York, and then register my vehicle in New York will I additionally have to pay the New York sales tax (~8.25%) as well on top of the CA tax I already paid? Or, should I do something to go around the bush and somehow purchase the car here in CA with New York registration/tax? Is that even possible? Thanks all in advance! __________________ I'm sorry about my outlandish behavior - there's too much blood in my alcohol system.
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07-13-2006, 11:23 AM	#2
espo Captain 12 Rep 715 Posts Drives: 2014 M235i Join Date: Sep 2005 Location: Sugar Land TX iTrader: (0)	Well to drive the car to New York you would have to have the car registered in some state... You need to have an official residence in a state (and possibly a drivers license from that state) to register a car in a given state. If you do register the car in CA, then move to NY and register it here, then you will not pay NY sales tax. You will only pay the registration fee (which is about $60/2 years) and then need to get the car inspected here (about $30 at most places). __________________ E46 325xi Oxford Green/Sand Leatherette/Myrtle Wood Auto ZCW - Retired E90 330xi Mystic Blue/Black Leather/Aluminum 6sp Manual ZSP/ZPP/ZCW/CA - Retired F22 M235i Mineral Gray/Red Leather/Aluminum 6sp Manual ZPP/ZTP
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07-13-2006, 11:30 AM	#3
Squawks One of my two dachshunds: 53 Rep 663 Posts Drives: B6 A4 3.0 Quattro Join Date: Aug 2005 Location: Ithaca, NY iTrader: (0)	espo - thanks for the info! I am now curious about this scam - what if you used to live in Oregon (no sales tax there) but moved to northern California (~8% sales tax) and decided to buy a car. You buy the car in Oregon and have it registered there (thus paying no sales tax - you also have an Oregon drivers license) - and then just bring the car back home to California where you now live, bypassing the 8% tax! __________________ I'm sorry about my outlandish behavior - there's too much blood in my alcohol system.
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07-13-2006, 11:34 AM	#4
bostoniant Private First Class 16 Rep 124 Posts Drives: 2006 330xi Join Date: Jun 2006 Location: Wash, DC iTrader: (0) Garage List 2006 330xi [0.00]	If you don't have proof of sales tax payment from another state, then your home state is free to tax you its own sales tax (even though it wasn't purchased there). it's a part of the registration process i believe. you have to submit proof of tax payment.
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07-13-2006, 11:45 AM	#8
Squawks One of my two dachshunds: 53 Rep 663 Posts Drives: B6 A4 3.0 Quattro Join Date: Aug 2005 Location: Ithaca, NY iTrader: (0)	zz25 - thanks a lot for the information and for clarifying things. Are temp plates only valid for a few days at most? That's one brutal drive in such short time! __________________ I'm sorry about my outlandish behavior - there's too much blood in my alcohol system.
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07-13-2006, 11:46 AM	#9
Squawks One of my two dachshunds: 53 Rep 663 Posts Drives: B6 A4 3.0 Quattro Join Date: Aug 2005 Location: Ithaca, NY iTrader: (0)	Bostonian - what the hell?! Property tax on the car? So even if I were to buy a car in NY, it is possible that I would be double whammed with a state sales tax AND a county property tax? Damn! __________________ I'm sorry about my outlandish behavior - there's too much blood in my alcohol system.
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07-13-2006, 11:47 AM	#10
RichReg Colonel 121 Rep 2,099 Posts Drives: 2015 435Xi GC & 2000 323Ci. Join Date: Apr 2005 Location: New Jersey iTrader: (0)	Guys; What if you do European Delivery? Can you register the car in another state when it comes back from Europe? Preferably one with little or no sales tax? Just curious....
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07-13-2006, 11:50 AM	#11
Squawks One of my two dachshunds: 53 Rep 663 Posts Drives: B6 A4 3.0 Quattro Join Date: Aug 2005 Location: Ithaca, NY iTrader: (0)	Rich, as said above you have to be a resident of a particular state in order to register it there - otherwise that would constitute fraud. As said already, there are 'loopholes' like vacation homes, working out of state, etc. __________________ I'm sorry about my outlandish behavior - there's too much blood in my alcohol system.
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07-13-2006, 12:26 PM	#15
Squawks One of my two dachshunds: 53 Rep 663 Posts Drives: B6 A4 3.0 Quattro Join Date: Aug 2005 Location: Ithaca, NY iTrader: (0)	Hahahah! I am not clear on your definition of 'permanent' - I suppose I will be permanent as NY will be my home for 6 years at most. But from what you are saying bostoniant - I may have to pay the county-imposed tax but I should be clear from NY state sales tax if I register (or re-register) my car in NY? __________________ I'm sorry about my outlandish behavior - there's too much blood in my alcohol system.
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