State sales tax
#1
09-14-09, 12:28 PM
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
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
#2
09-14-09, 12:57 PM
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.
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
09-14-09, 01:04 PM
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.
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
09-14-09, 01:08 PM
Super Moderator
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.
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
09-14-09, 01:11 PM
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.
#6
09-14-09, 01:28 PM
Super Moderator
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
09-14-09, 01:50 PM
Member
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.
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
09-14-09, 04:36 PM
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.
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.
