Out of state buyer, Taxes & tag confusion

[wcjeep]

Your out of state dealer is trying to avoid being fined . If they under collect they could be accused of tax avoidance.

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[Harmon]

if you finance or lease, the dealer is required by the bank to collect tax, tag and title. If you pay cash, they are not required to.

That may be true in some states and/or with some lenders, but not mine. I've bought three new vehicles which were financed by three different lenders without paying TTL at the dealership. We have 30 days to pay the excise tax and get a new vehicle tagged in my state.

 

[Wanted33]

I just bought a Corvette in Maryland. I paid the dealer (Criswell) the tax amount. He then sent me a check for that same amount, and I went to my DMV to pay the sales tax. I would think that if the dealer does overcharge you, you will get that amount back. Then you can pay the correct fees. I would suggest to take the worry out of the situation just ask the dealer if that is what will happen.

 

[cns721]

Criswell sent me a check wriitten out to the DMV for the tax but they calculated the tax too high. I had to ask them to send another check written out to me so I could cash it then pay the DMV with cash. You could ask them to write the check to your name or just tell them to not charge you tax. Just pay the purchase price + doc fees and pay the tax on your own when you register the Jeep at your local DMV.

 

[JungleJeep]

Criswell sent me a check wriitten out to the DMV for the tax but they calculated the tax too high. I had to ask them to send another check written out to me so I could cash it then pay the DMV with cash. You could ask them to write the check to your name or just tell them to not charge you tax. Just pay the purchase price + doc fees and pay the tax on your own when you register the Jeep at your local DMV.

Ok that's interesting. I think I have it figured out now, but how long it take to get your check? Did they give you a 30 day drive away tag? I have certified info from my DMV to help us, and am prepared for different scenarios now.

 

[JungleJeep]

I think it's all good now, but will let y'all know what's up.

 

[cns721]

Ok that's interesting. I think I have it figured out now, but how long it take to get your check? Did they give you a 30 day drive away tag? I have certified info from my DMV to help us, and am prepared for different scenarios now.

It took about 2 weeks for me to get all of the documents from the dealer including the tax check. They gave me a 60 day tag so there is plenty of time to get everything sorted out.

 

[ddorrer]

I wouldnt sign anything unless the tax, title and reg fees collected by the out of state dealer are in the contract AND match the amount charged by your state. Pretty easy to figure out the fees.

 

[Tephlon]

Anybody from Texas buy out of State? I'm not thrilled with my local dealership and they won't come close to the 7 or 8 percent under invoice I see others talking about. I hope the out-of-state buying experience for Texas isn't as troublesome as it sounds like other states can be.

When I read articles about the Taxes for new car sales in Texas, some articles flatly say 6.25%, and others say the state tax is 6.25% and then local counties and cities may have additional taxes. I can't find anything for my city or county that mentions new car sales tax rates, and I can't seem to find a chart with Texas counties new car tax rates like I would expect if additional sales tax applied.

I know the generic sales tax for my area is 8.25%, but I can't get a straight answer on whether that applies to car sales also, or if new car sales get a different tax rate from the general sales tax rate.

Could I have made that any more confusing?

EDIT: WEEELLLLLL, I'm an idiot. I just realized that I've purchased cars in the past, and after dragging out that paperwork, I can see that the sales tax in both cases was a flat 6.25%.
So at least as far as taxes go for my area, it's just the state tax.

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