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The idea is to save the sales tax on the purchase of an automobile.

2007-05-20 03:47:06 · 8 answers · asked by pfs5k 1 in Business & Finance Taxes United States

8 answers

In a local town a judge was fined for buying a $200K motor home in a state with no sales tax and registering it there, then bring it back home. The place he bought the motor home was providing this "service" for out of state customers. They would provide you (for a small fee) an address to register your new motor home ,,etc. But the judge was caught with the out of state tags and paid a huge fine,, then had to pay the local sales tax and register in this state.
You can buy a car anywhere you want, but you pay the sales tax when you register and tag ther auto where you live.

2007-05-20 04:54:16 · answer #1 · answered by Jo Blo 6 · 0 0

You can, however, you'll need to register your car where you live in order to be legal. And, when you do so, you'll pay a tax exactly equal to the sales tax you would have paid originally, plus a separate registration fee, just as you would have paid if you bought in-state. Avoidance of sales tax is illegal in virtually all states. This point is discussed constantly in regard to motorhome purchases which carry price tags of $100,000 and up. There is a process of incorporating in Montana which some espouse as a method to avoid the huge sales tax many would pay in their own states. Some have said that their states still came after them for taxes. A motorhome is often not kept at a residence, and many RVrs travel almost all year, so it's a bit easier. But, if you live in a particular city/state, and drive and park in that city/state, you will eventually be caught if you try to keep your vehicle registered out of state.

2007-05-20 03:56:04 · answer #2 · answered by Still reading 6 · 1 0

Yes, you may buy a vehicle in a state w/o a sales tax, however when you register the vehicle in your state you will have to pay the sales tax.

2007-05-20 03:52:55 · answer #3 · answered by Anonymous · 1 0

Sure, but your home state will levy the sales tax (actually "use" tax but the rate is the same) when you go to register the vehicle in your home state. There's no way around that.

2007-05-20 23:22:32 · answer #4 · answered by Bostonian In MO 7 · 0 1

You can buy a car wherever you want to, but you'll still have to pay the sales tax to your state when you register the car there.

2007-05-20 06:08:03 · answer #5 · answered by Judy 7 · 1 1

You would still be required to pay the taxes in your home state when you register for your tags and registration.

2007-05-20 03:55:03 · answer #6 · answered by nikiro 2 · 1 0

Yes, you still have to pay your states tax when you tag and insure the auto.

2007-05-20 03:51:22 · answer #7 · answered by rougerocker 3 · 2 0

Yes, you can. But unless you want to register it there, your state is going to gig ya when you go to register it back home. The political parasites are going to get their money, one way or another.

2007-05-20 03:57:13 · answer #8 · answered by texasjewboy12 6 · 0 1

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