Living in Colorado buying out of state

[Whaler27]

Thanks that does make sense I don't plan to trade in if I did, they would just laugh at my truck and tell me it's not worth it.
Depending on options and price increase with the no tax I'm looking at over 11k off on jlr.
Will be financing also. Did you have it set up before going to Gupton or did you finance through them if through them how was it?

Colorado has a little different system. It charges a “use tax” which is assessed when you try to register the vehicle you bought out of state. If I read the standard correctly, it’s only 2.1% of the full retail price if the vehicle, irrespective of any rebates. It looks like Colorado continues to spank you with THAT tax at a declining level as long as you own the vehicle. (That’s in addition to registration fees). (There is some kind of credit- back provision if you paid taxes at purchase.) Of course, all the details and forms are on your DMV website. It’s a heck of a beating To pay a “use tax” forever. I’m a car puppy, so I couldn’t afford to live there.

That’s a real bite in the ass if you’re not used to paying fees/taxes like that, but it’s better that getting the full sales tax beating. My brother lives near Glenwood Springs, and his collection of sales taxes is about 10%!

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[Javwohl]

Colorado has a little different system. Instead of a sales tax it has a “use tax” which is assessed when you try to register. If I read the standard correctly, it’s only 2.1% of the retail price if the vehicle, irrespective of rebates. It looks like Colorado continues to spank you with that tax and a declining level as long as you own the vehicle. (That’s in addition to registration fees). Of course, all the details and forms are on your DMV website.

That’s a real bite in the ass if you’re not used to paying fees/taxes like that, but it’s better that getting the full sales tax beating. My brother lives near Glenwood Springs, and his collection of sales taxes is about 10%!

Thanks this was how I had understood it when I had read the state website since purchase out of state no sales tax would be collected but the state usage tax would still be collected.
One of the bad things about out here is each county/city can set its own tax rate so its different everywhere you go.

 

[Whaler27]

Thanks this was how I had understood it when I had read the state website since purchase out of state no sales tax would be collected but the state usage tax would still be collected.
One of the bad things about out here is each county/city can set its own tax rate so its different everywhere you go.

The use tax is easy to find on the web, as is the reference to a credit back for any tax paid elsewhere on the purchase. What’s harder to figure is the actual net tax on your purchase, because, just like the sales taxes, there are both local and state versions of use taxes, and they are cumulative. Colorado’s state “use tax” isn’t so different from the state sales tax (2.9%?)

The question for you is what local “use” taxes you will have to pay on your purchase when you register and, apparently, every year after that as long as you register the vehicle. (Colorado’s system is basically a personal property tax. You’re taxed when you buy something, and then you’re taxed in perpetuity for continuing to own it.)

The total sales tax in Glenwood Springs is almost 10%, but the Colorado state portion is less than one third of that. Seems awful, but it’s not unique to Colorado. The variable and cumulative state/county/local sales tax pattern is all over the country, with the exception of the few states that have no sales tax at all. When you look up state sales taxes you‘re generally seeing an average of the aggregate sales tax after all the local taxes are figured in.

 

[Mgg253]

Bought in MO, they collected tax at time of sale and remitted to CO DOR. Was a dealership process and annoying as hell cause it took forever to get my tags. That said, one way or another you aren’t getting outta tax, and the first couple years are a bitch on registering. I think I was 1200 initially then 900 second year.

 

[Javwohl]

Bought in MO, they collected tax at time of sale and remitted to CO DOR. Was a dealership process and annoying as hell cause it took forever to get my tags. That said, one way or another you aren’t getting outta tax, and the first couple years are a bitch on registering. I think I was 1200 initially then 900 second year.

Thanks my brother has been emailing around to different dealerships we have been look at doing business with and one said they collect the tax and file it for us and the other was like your on your own with it we just give you the title. Yeah the usage tax is crazy on my 01 ram I still pay over 100 for tags on that and my 17 gti is over 300 looking at the estimater for the jee it be around 1200 for that.

 

[redbeard]

I have an order in with Granger and received the following details from them:

Our only two fees are a $180 documentation fee and a $45 transit tag fee. You will pay sales tax, title, license in your own state.

Your county DMV office will collect sales tax based on the registered address of the vehicle. I'm live in an area that is considered outside of city limits, so my tax rate is slightly lower than if I lived within city limits.

At the initial visit to the DMV, you'll pay sales tax, title application fee (~$7.40), and plate registration fees.

What I haven't figured out yet for sure is if we'll need to have a VIN verification done, since it's an out of state vehicle purchase. But - since it's new and never titled, I don't think we need that.

When the time comes, I plan to take my purchase paperwork (specially the purchase agreement contract) along with proof of insurance to the DMV. I believe that should be all that's needed and they'll complete the necessary forms for titling and registration.

 

[Javwohl]

I have an order in with Granger and received the following details from them:



Your county DMV office will collect sales tax based on the registered address of the vehicle. I'm live in an area that is considered outside of city limits, so my tax rate is slightly lower than if I lived within city limits.

At the initial visit to the DMV, you'll pay sales tax, title application fee (~$7.40), and plate registration fees.

What I haven't figured out yet for sure is if we'll need to have a VIN verification done, since it's an out of state vehicle purchase. But - since it's new and never titled, I don't think we need that.

When the time comes, I plan to take my purchase paperwork (specially the purchase agreement contract) along with proof of insurance to the DMV. I believe that should be all that's needed and they'll complete the necessary forms for titling and registration.

Thanks I’ve been looking into it some more I had read some were off one of the Colorado websites that said sales tax was based on we’re you took delivery of the vehicle but that seems to have changed. I’m currently planning to go through Ourisman and they will handle all the sales tax portion and filing for me so all I have to worry about it paying the registration/plate fee once I get the card in the mail.

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