This may be a bit confusing...
I'm moving to California from Minnesota and am buying a new car before hand. I checked out how much it would cost to register my car. I have to pay the sales tax difference between the two states, about $400.
My fried is moving from Wisconsin to Minnesota and she just bought a new car. Tax is about 1.4% less in Wisconsin, so she would have to pay about $350. She was told she wouldn't have to pay the difference though.
If this is true, why would you have to pay the difference in one state and not in the other? Or is she just mistaken?
2007-07-20 09:27:32 · 5 answers · asked by coop439 2 in Cars & Transportation ➔ Buying & Selling
I have to register right away to claim residency after a year. I'm going there for grad school.
2007-07-20 09:34:32 · update #1
I'm buying a Prius, I'll pass emissions tests, not trying to be rude, but can somone just answer the question and stop being critical of other things that aren't my question, thanks!!
2007-07-20 09:44:41 · update #2
Sorry, that sounded worse than I wanted it to, I appreciate that people are trying to tell me to watch out for other things, but I've already thought about those details and have been planning for 2 years :-)
2007-07-20 09:46:40 · update #3
It depends what the sales tax is like in the state where you are purchasing the car v/s where you are registering. All 3 states mentioned are reciprocating, meaning that the taxes you pay where you buy it are credited towards taxes due in the state in which you register.
That being said, if your friends car was cheaper, or she had a trade in (which lowers your taxes in several states, I'm not sure about California or Minnesota, however Wisconsin is a tax credit state). Sales tax would then be as follows:
Vehicle price - Trade Value = Taxable amount.
States like Michigan are strictly Vehicle price = Taxable amount. I am assuming you are purchasing the vehicles in one state and registering in another. It's possible the dealership your friend bought her car from either collected Minnesota taxes or included them in the selling price. The answer to your question is that states will get their taxes, so either she is mistaken, or the dealership covered them. I hope this helps you. You can email for more questions.
2007-07-24 05:23:59 · answer #1 · answered by The Auto Evaluator™ 7 · 5⤊ 0⤋
The sales tax thing varies from state to state. The only thing about California is that they have very strict emission laws. The car you buy in MN may not pass the CA emission laws when you go to register it. When you do buy the car, make sure it is CA legal.
good luck and have a safe trip.
2007-07-20 16:38:20 · answer #2 · answered by Fordman 7 · 1⤊ 0⤋
Each state has its own rules about registration transfers. You will have to pay Sales tax or USE tax in Calif. on the value of the car. Since CALIF tax rates are probably higher, it would be better to wait to get a CALIF registration, because the USE tax will be less after the car is one or two years old. Some people try to use the home state license plate until it expires. Some states allow renewal of home state (WIS) residents via U.S. mails, but not if you change your state of residency. Military personnel are allowed to maintain their home state license and registration for the duration of their assignment in their duty station.
2007-07-20 16:50:04 · answer #3 · answered by Phillip S 6 · 1⤊ 0⤋
My suggestion: register the car before you go. It really makes no difference to you if the car is registered in Minn. Next year, when the tags expire, register it in Cali. That way you can avoid paying for a year.
2007-07-20 16:31:24 · answer #4 · answered by Bruce J 4 · 2⤊ 0⤋
two words: Caly Fornia.
God help you.
2007-07-20 16:32:50 · answer #5 · answered by Anonymous · 2⤊ 0⤋