Sales tax

[Dwinckler]

If I buy a vehicle in California but want to register it in Texas do I pay sales tax twice? The dealer is saying yes.

[firemedicmark]

I would say yes only because...
California

[tomkatb]

We bought a sailboat in Kentucky and paid the sales tax there. At the dealer. Not negotiable.

When went home to Missouri a few days later. They calculated what it would be in Missouri. Where we were registering it. We had to pay the difference.

I suspect that is typical. But, who knows in California.

[kfd82]

I live in Texas and have bought out of state twice.

Alabama and Louisiana. I did not pay state sales tax either time. I had to pay tax at the county office when I registered the vehicle.

[mmartin_tdc]

I do not think so. If you payed sales tax for the purchase in another state and can prove that during the registration process, you do not pay tax again. At least that is how it worked when I bought something outside of CA and then registered it in CA.

[NavyLCDR]

Originally Posted by Dwinckler

If I buy a vehicle in California but want to register it in Texas do I pay sales tax twice? The dealer is saying yes.

Just curious, did you look on Texas government website for a real answer? Wouldn't that be the logical place to find the real answer rather than internet guessers here? Texas gives you credit for the tax paid in California, which I can guarantee will be more than 6.25%

BTW, this answer is being provided by a member who lives in Oregon, where we pay 0.5% vehicle use tax on vehicles, and no sales tax.

https://comptroller.texas.gov/taxes/.../sales-use.php

A Texas resident, a person domiciled or doing business in Texas, or a new Texas resident who brings into Texas a motor vehicle that was purchased or leased out of state owes motor vehicle use tax, the new resident tax or the gift tax, as applicable.

Use:
Texas residents – 6.25 percent of sales price, less credit for sales or use taxes paid to other states, when bringing a motor vehicle into Texas that was purchased in another state.

[NavyLCDR]

The California vehicle sales tax is 7.25% + district taxes, so you won't pay any additional tax in Texas - you will be donating over 1% what you would pay to the state of California.

[dieselguy]

California is in its own universe (sorry residents) but generally in the Midwest if you buy out of state and you advise the dealer you're tagging it in your home state, you're not charged sales tax at point of sale, but you sure are charged sales tax back in your home state. It makes little to no sense other than a money grab.

[NavyLCDR]

Originally Posted by dieselguy

California is in its own universe (sorry residents) but generally in the Midwest if you buy out of state and you advise the dealer you're tagging it in your home state, you're not charged sales tax at point of sale, but you sure are charged sales tax back in your home state. It makes little to no sense other than a money grab.

In California, if you drive the vehicle off the lot, you have to pay California Sales Tax on it. If you purchase the vehicle and have the dealer ship it to a location outside of California, then you don't pay California sales tax, you pay the tax to the location it was shipped to. Since the difference in tax to California and to Texas is around 1 to 1.5% (depending on the purchase location in California), I doubt there would be any savings by having the RV shipped to Texas, unless the buyer really, really wanted to not give their money to the state of California.

[TitanMike]

In the different states I've purchased vehicles in and then moved to another state, Sales Tax has always been collected at the point of sale. When I've moved, or taken the vehicle to another state to be registered, the registering agent has credited any sales tax I've paid in another state towards that state's sales tax.

Over the years I've never been "double taxed" on the Sales tax, first in the state where I purchased a vehicle, next in the state I've moved to.

In states like Oregon with no sales tax one would just be stuck for the original Sales Tax at time of purchase which might make one thinking of moving to Oregon to wait to purchase a new vehicle and buy it there.

[NavyLCDR]

Originally Posted by TitanMike

In the different states I've purchased vehicles in and then moved to another state, Sales Tax has always been collected at the point of sale. When I've moved, or taken the vehicle to another state to be registered, the registering agent has credited any sales tax I've paid in another state towards that state's sales tax.

Over the years I've never been "double taxed" on the Sales tax, first in the state where I purchased a vehicle, next in the state I've moved to.

In states like Oregon with no sales tax one would just be stuck for the original Sales Tax at time of purchase which might make one thinking of moving to Oregon to wait to purchase a new vehicle and buy it there.

Exactly, which is the way the Texas state government website explained it. It also depends on the state tax laws where it is purchased. I purchased my travel trailer in Washington, but because I had an Oregon drivers license (where I live), I was required to pay only the 0.5% Oregon vehicle use tax, which the Washington dealer then sent to the state of Oregon. In order to not pay the tax in Oregon, I had to show the sales contract that showed that the 0.5% tax was collected by the Washington dealer. This purchase was just made earlier this year, so the same laws are in effect between Washington and Oregon.

The same "courtesy" is not extended by the state of California, however.

[Dwinckler]

I understand the usage tax but not being charged twice thanks for the replies. Going to the Texas tax office Monday to see what they say.

[AlaskaErik]

Originally Posted by dieselguy

California is in its own universe (sorry residents) but generally in the Midwest if you buy out of state and you advise the dealer you're tagging it in your home state, you're not charged sales tax at point of sale, but you sure are charged sales tax back in your home state. It makes little to no sense other than a money grab.

It depends on the state. Wisconsin will charge a sales tax on vehicles, regardless of where you live, just like California. Missouri apparently charges the sales tax when you register a new vehicle, so I was able to avoid paying any sales tax when I bought my KZ 130RBSE, since I am an Alaska resident and that's where the trailer is registered. Buying in Missouri also helped me avoid paying the local city sales tax at home. That alone saved me $12.50.

[NavyLCDR]

Originally Posted by Dwinckler

I understand the usage tax but not being charged twice thanks for the replies. Going to the Texas tax office Monday to see what they say.

Well, if they tell you something other than what their own website says which I posted for you' make sure to show them what their own website says.

[upflying]

I bought my Ram in Idaho and the dealer collected NV sales tax..
The dealer issued a one way moving permit for the drive back to Reno.

[llr]

When I bought my prior TT in Indiana they said that they were required to collect the tax due in what ever state it will be registered. I paid them the Ohio tax amount and they gave be a check for that made out to the Ohio BMV. Not sure if other states are like this.

[NJKris]

50 different answers for 50 states. Bought in PA, didn't pay sales tax till I titled it in NJ.

[bzac1954]

We live in Wyoming and purchased our travel trailer in Texas. No sales tax paid til we brought it home. Same for our tv. Bought in TX and sales tax paid when we registered it here in Wyoming!

[DogFather]

Originally Posted by Dwinckler

If I buy a vehicle in California but want to register it in Texas do I pay sales tax twice? The dealer is saying yes.

You don't have to.

If purchase is in CA and delivery is out of state, and proper CA paperwork is done, CA sales tax can be avoided but your registering state will want theirs.

We live in MT, bought our rig at a show in CA, took delivery in AZ over the CA border, and that's how it worked for us.

[Lee-C]

Texas residence and purchased TT in Oklahoma this year. All tax purposes paperwork was done through 50 States DMV while at the dealer. The dealer you are doing business with should be familiar with this. We paid our sales tax directly to 50 States DVM which was calculated on the Texas County in which we live and was then paid by them to the local County Clerk's office. Maybe California refuses to abide by what other states have in place?
Happy camping!
Lee & Edith