State sales tax

Reply

  #1  
Old 09-14-09, 11:28 AM
Member
Thread Starter
Join Date: Feb 2005
Location: Wisconsin U.S.A.
Posts: 109
State sales tax

Heres one for someone that has more know how than me (which
is most people on this thread) I looking to buy a 20k dollar car, but don't want to pay tax on it. I live in Wisconsin by the big pond if it matters. My though is to buy it in Ill, which is 60 miles away, or buy it from a private party here in Wisc. to avoid paying
1k in taxes, will that work or is there another way to not pay taxes, or no way to avoid uncle sam.
thanks
 
Sponsored Links
  #2  
Old 09-14-09, 11:57 AM
Member
Join Date: Nov 2004
Location: USA
Posts: 1,959
Well "uncle sam" is not state taxes that's federal.That said private party car sales would not be subject to sales tax.As for another state you would be subject to the state sales tax of that state.

None of this would impact any other tax issue such as personal property tax etc.You would have to pay those at whaever Wis rates are etc.
 
  #3  
Old 09-14-09, 12:04 PM
Forum Topic Moderator
Join Date: Oct 2002
Location: Hamilton County, Ohio
Posts: 4,286
They say that two things you can't avoid are death and taxes.
In my state you can buy from a private owner or out of state without paying the other state's tax.
The zinger is when you register the car to get license plates. Then you pay the taxes plus license and registration fees.

Some have been known to get the seller to indicate on the title that they sold the car for some cheap rate - say 5K because it was in poor condition. You actually pay the seller 20K but pay sales tax on only 5K. I'm not endorsing this, just saying it's been known to happen.
 
  #4  
Old 09-14-09, 12:08 PM
Gunguy45's Avatar
Super Moderator
Join Date: Dec 2007
Location: USA
Posts: 20,669
If you buy from a private party..there is no sales tax. IL doesn't have a sales tax? If they do you'll have to pay it even if you live in WI.

Now maybe Delaware Alaska or Oregon would work....

I knew people that were from VA and tried to buy cars in NC (SC?) and didn't pay sales tax cause they were from out of state..when they went to register it in VA..they collected the VA rate from them then...

Basically it was something like.."if you didn't pay the tax in the state you bought it in, you pay it in the state you live in". Most states that are in close proximity have agreements like that as I understand.
 
  #5  
Old 09-14-09, 12:11 PM
ray2047's Avatar
Group Moderator
Join Date: Mar 2006
Location: USA
Posts: 32,378
Some have been known to get the seller to indicate on the title that they sold the car for some cheap rate - say 5K because it was in poor condition. You actually pay the seller 20K but pay sales tax on only 5K. I'm not endorsing this, just saying it's been known to happen.
Here that no longer works. The computer pops up a little red flag and you pay taxes on what the states data base says is the fair market value.
 
  #6  
Old 09-14-09, 12:28 PM
Gunguy45's Avatar
Super Moderator
Join Date: Dec 2007
Location: USA
Posts: 20,669
Yep..last time I did any DMV stuff in VA..if it wasn't a family member (same last name) you had to be at least close to the real price or they based it on blue book...unless it was a salvage thing.
 
  #7  
Old 09-14-09, 12:50 PM
Join Date: Mar 2005
Location: USA
Posts: 6,125
State sales tax

There are two main points - sales tax and registration.

In many states, if you buy it from a private party (not a "dealer") there may be no sales tax in the state where the sale takes place and the car is currently registered.

Registration is a different animal. Many states are wise to the avoidance schemes and may catch that. The Republic of Wisconsin is notorious for catching all taxes they can.

Just check the Wisconsin sales tax and registration requirements. You probably have the best choice if you buy from an individual in Wisconsin.
 
  #8  
Old 09-14-09, 03:36 PM
Forum Topic Moderator
Join Date: Mar 2005
Location: USA
Posts: 42,814
Every state that I bought and registered a vehicle in [best I can remember] if you didn't pay sales tax to the dealer, you paid the tax when you registered the title and bought the tag. If you buy from a dealer you have to provide the sales reciept to keep from having to pay the tax twice

Most of my vehicles were bought from private parties and when I bought in another state but tagged it in my state - I paid sales tax to my state when I bought the tags. Here if the stated sales price isn't close to blue book - they ask why. If they don't like the answer, you will pay tax on the book price unless you can prove [to their satisfaction] that you paid less and why.
 
  #9  
Old 09-14-09, 04:52 PM
Member
Thread Starter
Join Date: Feb 2005
Location: Wisconsin U.S.A.
Posts: 109
Angry

Thanks everyone. You pay it now or you pay it later, but sooner or later you'll pay it.
 
Reply


Thread Tools
Search this Thread
Display Modes
Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are On



All times are GMT -7. The time now is 11:10 PM.