J.K.
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We purchased a used car out of state.
We were prepared to pay sales tax when we titled the car. We did not pay sales tax to the state we bought the car in, since it was being titled in another state.
The dealership sent us the title, with our name on the title already.
We went to title it today at our local DMV office, handed the paperwork to her. She goes, well I can't collect sales tax on this because the state processed the title and the title is already in your name. The Dealership should have sent you the original title with their signature titling it over to us . Since the other State processed the title, they can not collect sales tax. We informed her we never paid sales tax., she goes well guess you got lucky. We asked to speak to a supervisor, just to confirm, and they confirmed the other state processed the title, therefor they can't collect.
We still got the car titled just fine, only had to pay title fees and the property tax. I documented everything in the event we get a letter we owe sales taxes, I don't have an issue paying it but I refuse to pay any penalties.
I don't know what else to do, I called the main office of Revenue and they just said to discuss it with our local office. Called the other state and confirmed, they can't collect because we aren't having it titled there (which I knew already). I just hate having this hang over our heads. We've decided to put the money in savings and see what happens when we go to renew the tags.
The sales tax was not included in the price. We signed a temp tag license application, which it states Buyer to pay sales tax in resident state. We paid the fee for the non resident temp tag.
Dealership can not legally collect the sales tax, they only could if we were residents or titled the car in that State.
Legally we owe our State the sales tax.
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Does your state collect use tax? This might fall into the use tax category for sales tax that should have been collected but was not.
Good idea to keep records so you can avoid future penalties incase they come back and say you "should" have. Maybe even email the DMV and keep their reponse, just to have it in writing.
Are you sure the taxes weren't included in the sale price. If the dealership titled it in your name they had to pay the taxes and you would have had to sign the title application.
So I guess either it was in the sale price or you may get a bill from the dealer.
I think putting the money in the bank is a good idea. There is really nothing you can do if no one wants your money! Keep the records in a safe place and you should be fine.
Something similar happened to us many years ago. We bought a car via a broker who handled the deal. They negotiated the price with a dealership, and delivered the car to us themselves. This was a brand new vehicle, made to our specs. We traveled from our state (11 hours away) to meet the broker and pick up the car and pay them (with a check from our credit union, just like if I were buying it through a credit union loan from a local dealer). There was no sales tax in the documentation because we were not titling the vehicle there. We fully expected to pay it when we applied for tags, etc in our home state. Nope. No sales tax was required.
Not sure about all the whys and hows... but we didn't do anything shady. It was all above-board. That was back in.... 1999? We don't even HAVE that car anymore... and no one ever came back and said "oops-you were supposed to pay".
Kristina:
Is it possible the tax was included in the sales price of the car and that is why they were able to process the title?
If not - guess you got lucky and if you feel funky about it - set what would've have been aside for taxes...just in case...and if you don't get charged in your current state- donate the money to charity?
OMG I didnt go through the exact same thing. but before you take the word of the license office, call Jeff City just to make sure. I went back and forth for months over a $500 trailer. Jeff City number is ###-###-####. just to make sure and get names of everyone.
Lucky you LOL! I don't think we'll get so lucky when we Title hubbies new Prius. :)
You can't give them the money if they won't take it! Good for you, though, in trying to do the right thing.
Check you state tax forms when you file your taxes this year - bet there is a place on there to "claim" that sales tax not paid! (like anything purchased online where no sales tax collected - for products, magazines, etc)
You can wait til next year's renewal and see what happens - esp if your state doesn't have that on their forms!
I had a similar situation several years ago. They'll never charge you for it in the future. One, they don't want to do the extra work. Just county yourself lucky. We did! My Aunt even worked at the license bureau at the the time.
