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buy out of state = no sales tax?

jlrocks

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I'm in southern CA and I'm trying to order a JL. If I order one from a dealership out of state, will I be able to avoid paying sales tax? I might lease it in case that makes a difference.
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JDinSOCal

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I'm in southern CA and I'm trying to order a JL. If I order one from a dealership out of state, will I be able to avoid paying sales tax? I might lease it in case that makes a difference.
W
You will probably have to pay more Taxes. I lived in TX and purchase a used car and then 11 months later moved to So Cal, and because it was less than a year of me moving to CA I had to pay sales tax again for CA in order to register my car here. So not sure there is a way around sales tax.
 

kromealt

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No avoiding sales tax. Some states have tax agreements on who ultimately gets paid the tax but regardless you'll pay tax no matter what.
 

macintux

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Heck, you can't even legally avoid paying sales tax on small items you buy online.
 

Devsfan3

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You generally have to pay sales tax in the state in which you title and register the vehicle. So even if you buy the Jeep in AZ (for example), if you title and register in CA, you'll still owe CA sales tax (but not AZ sales tax).

In this way, it may be more difficult than buying in CA - the AZ dealer may only charge you AZ sales tax, and you would technically owe CA the difference (assuming there was one).
 

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Karl_in_Chicago

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I'm in southern CA and I'm trying to order a JL. If I order one from a dealership out of state, will I be able to avoid paying sales tax? I might lease it in case that makes a difference.
LOL! Short answer is NO.
 

iki4life

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You will pay for whichever state you want the car registered in along with which state drivers license you own. I have to make an appointment to change my DL so I get charged 6% tax in my current state as opposed to 7.5% tax in my home state.
 

JLWF Dealer Guy

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I'm in southern CA and I'm trying to order a JL. If I order one from a dealership out of state, will I be able to avoid paying sales tax? I might lease it in case that makes a difference.
It Varies. If you ship the vehicle into your state, you generally don't pay any taxes except your state and local taxes when you register it. If you drive it from the dealership in another state, you may incur their local taxes. You may end up paying their state taxes as well but in some states, they are reciprocal so you don't get taxed twice, you just pay the difference especially there in CA where the taxes is higher than most. In some states, say Colorado where state tax is low, you may pay local tax from the out of state dealer, and your own state tax. Those deals usually wash out tax wise. Some are just jicky. Like if you but in California, you pay their tax no matter what even if your state tax is lower.
 

iki4life

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It Varies. If you ship the vehicle into your state, you generally don't pay any taxes except your state and local taxes when you register it. If you drive it from the dealership in another state, you may incur their local taxes. You may end up paying their state taxes as well but in some states, they are reciprocal so you don't get taxed twice, you just pay the difference especially there in CA where the taxes is higher than most. In some states, say Colorado where state tax is low, you may pay local tax from the out of state dealer, and your own state tax. Those deals usually wash out tax wise. Some are just jicky. Like if you but in California, you pay their tax no matter what even if your state tax is lower.
Question-

So If I buy in, lets say, Oklahoma, I would pay Oklahoma taxes (2000). Then, if I decide to move to California, I would have to pay the Vehicle sales tax for California(4000) as well?
Meaning Id have paid 6000 in total taxes if I move?

Or would be that I pay Oklahoma taxes (2000) and then the difference between CA and Oklahoma (2000) for a total of 4000?


What if I lease? would taxing be changed?
 

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wriver82

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Question-

So If I buy in, lets say, Oklahoma, I would pay Oklahoma taxes (2000). Then, if I decide to move to California, I would have to pay the Vehicle sales tax for California(4000) as well?
Meaning Id have paid 6000 in total taxes if I move?

Or would be that I pay Oklahoma taxes (2000) and then the difference between CA and Oklahoma (2000) for a total of 4000?


What if I lease? would taxing be changed?
Really depends on the state laws, in CT. you don't pay sales tax when you move into the state from another state as long as you owned it for more than 30 days. Leasing however may be different.
 

JLWF Dealer Guy

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Question-

So If I buy in, lets say, Oklahoma, I would pay Oklahoma taxes (2000). Then, if I decide to move to California, I would have to pay the Vehicle sales tax for California(4000) as well?
Meaning Id have paid 6000 in total taxes if I move?

Or would be that I pay Oklahoma taxes (2000) and then the difference between CA and Oklahoma (2000) for a total of 4000?


What if I lease? would taxing be changed?
Not necessarily. Different states have different laws. California is a weird one because they have certain (I don't live there, don't 100% know) laws as to what constitutes a used vehicle. If you are really in California, consult the DMV for that one. If you purchase a vehicle in OK, you pay that taxes. If you moved to say Colorado, you wouldn't be double charged. For most states its like that.

Leasing is a whole other ball of worms. If you leased in OK, then moved to a state with higher taxes, yes, your payment would go up by the difference in tax rate. That is why almost no dealership wants to do a out of state lease. Too involved and not worth the headache.
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