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Discussion Starter · #1 ·
If in wrong thread sry and move plz.

So I wasn’t just about to lock in a deal and leave a deposit over the phone.
Am in Michigan and the new Jeep is in Kentucky at dealer.
Then my bank said I have to pay taxes in Kentucky and Michigan
The dealer said they pay the taxes to Kentucky and I may have a small fee when I go to dmv here in Michigan.
Well I didn’t leave the deposit bc I need to know how it works and what it costs.
The bank and the dealer are saying different things.
I can’t call the state till Monday.
Anyone chime in on this?
 

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Anytime we've bought a truck for work in a different state than where it would be licensed, the taxes had to be paid to the state where it would be plated in. That is a new truck though, would assume it's similar though. It is definitely not a small fee, if you have to pay the full taxes when you get to the dmv. Depending on cost of vehicle.

Personally, I'd want the answer from the DMV in Michigan, the dealership/salesman will likely say anything to get the sale.
 

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Discussion Starter · #4 ·
Anytime we've bought a truck for work in a different state than where it would be licensed, the taxes had to be paid to the state where it would be plated in. That is a new truck though, would assume it's similar though. It is definitely not a small fee, if you have to pay the full taxes when you get to the dmv. Depending on cost of vehicle.

Personally, I'd want the answer from the DMV in Michigan, the dealership/salesman will likely say anything to get the sale.
You would think the state it was sold in would want the tax money after all it was sold in there State.
And then that would be it.
But idk
 

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I've done this a few times and most recently last fall. Unfortunately you'll get many answers. It has taken me several phone calls, up the chain, at my dmv to figure an answer. And then more calls to get more info to confirm. Your state's dmv is the key source, because they will end up levying the tax when you go to title and plate it.

The selling out of state dealer is not going to know for certain. I've had to argue and show them things to not levy a full tax on me. Unless you have a dealer who does out of state sales routinely, which is uncommon. But some dealers do have a serious internet sales presence, and those will be more adept at doing things correctly.

But there is no guarantee that both states won't levy a tax. In my recent case, out of state AZ levied a small city sales tax but not a state level tax. Then my state levied its state tax with a credit for the city tax paid in AZ. State pairs will be different. I've done other pairs before. I did CO out of state to AZ home once and CO levied zero while AZ levied full. I know TX as the out of state levies zero as of last year. I don't know anything about your state pairs.
 

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I bought a G-35 through my car dealer brother who lived in a different state. You will have to pay the sales tax in cash when you register it in your state not getting the benefit of financing the tax into your loan. So, unless you're getting a really good deal out of state and have the sales tax money in your wallet, I wouldn't recommend going there.
 

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Discussion Starter · #7 ·
Boy oh boy is it even worth this.
I did get 6k off msrp
Compared to 3500 at a dealer here near me.
Maybe I won’t get it.
Nothing around here I like.
 

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Bought my Jeep in Ohio and plated it here in WV last year. VERY easy. Got a temp plate in Ohio to get home (cost a few bucks) and signed some sheet saying I would pay state tax in my home state (WV).
Got here and went to DMV, paid the tax and title fee and they gave me the hard plate. Think the whole thing cost me $25 bucks extra over buying it here. It is really easy and not a big deal. Just check with the DMV and get the answers - Can also have your dealer call whoever you talk to so they are on board.
 

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Discussion Starter · #9 ·
Bought my Jeep in Ohio and plated it here in WV last year. VERY easy. Got a temp plate in Ohio to get home (cost a few bucks) and signed some sheet saying I would pay state tax in my home state (WV).
Got here and went to DMV, paid the tax and title fee and they gave me the hard plate. Think the whole thing cost me $25 bucks extra over buying it here. It is really easy and not a big deal. Just check with the DMV and get the answers - Can also have your dealer call whoever you talk to so they are on board.
Makes sense but there saying the state am buying from gets the taxes.
I will find out more Monday
Definitely was easy going for you. 👍🏼
 

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I bought my pickup in Tx while I was working as a traveling nurse. My tax/perm home was MT. Since there is no sales tax in MT and my pickup was to be licensed in MT, I did not pay any sales tax in TX. The dealer had to verify no sales tax in MT and once he did, I had no problems. My pickup was financed through Ford.
 

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Sounds like the answer you can trust most is at the MI DMV.
I've bought vehicles from IL, OH, PA, KS, GA, and TX. I live in FL. Every one of the sales (some from dealer and some from individuals) left it up to me to pay the sales tax at my FL DMV. It's 6% due here.
I have seen where the selling state does collect taxes and then send the portion due to the purchasing state. That's fine if everyone (your DMV) is on the same page. Paying taxes once is bad enough.
 

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We bought our JK from a dealer in IL. It was to be registered in MO and so we did not have to pay any taxes until we went to the MO DMV and registered it.

The nice thing is since we bought it from a different state we did not have to pay some sort of local tax like we would have if we had bought it from a MO dealer. It saved us $950. It was a MO tax loophole back then and perhaps things have changed since 2012 but it was one reason we drove an extra 30 minutes to that IL dealer instead of the MO dealer 5 miles from our house.
 

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I live in Montana where we have no sales tax. I have bought several new vehicles in states that have sales tax and they have always exempted me from their sales tax. this was always discussed in advance of showing up so there were no surprises.
 

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Using MA and NH as an example:

In MA you pay tax at the time of registration.
In NH you pay tax at the time of registration.

If you live in NH, purchase in MA, you are expected to pay MA tax on the sale at a MA state tax office. They most likely will not chase you, but if you ever move into MA they will backdate with penalty all the taxes unless you can provide proof that you either paid the taxes (receipt) OR that the vehicle was delivered out of state by the dealer and you took possession out of state.

Taxes are due to the state where the vehicle was SOLD and if you take possession out of state and the constitutes the final sale.

I'm not a lawyer but have bought a lot of vehicles over the years. I always take delivery in my home state. You can even try to pay them to have someone drive it to you and finalize in your home state. Make sure the receipt states it was delivered to your state,. It's worth the couple hundred dollars vs thousands in taxes.
 

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It seems like it may depend on the dealer. I was in NC and was moving to GA. I had rented a GA house and had proof of residency. The NC dealer used software that charged me the appropriate GA tax. I did not pay anything to NC.
 

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Discussion Starter · #16 ·
MI dvm says I just pay where I bought it and show the prof I paid.
I called Kentucky dvm they said they collect no tax if I live out of state and I pay it to MI lol
So I told the dealer what there dvm said.
Waiting for response.
 

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We bought our JKU in Virginia and live in Maryland. Granted, those two states are next to each other and as such the dealer in VA is likely used to it more than a dealer in KY is used to MI. Anyway, I have always had to pay the taxes on the state the vehicle is registered in and not in the state the vehicle was purchased in unless that state was going to forward the money to the state the vehicle is purchased in. That would have to be clearly spelled out in writing in this case.
Either way can work, but you need to make sure that if you pay the dealer they will pay your state. Easier would be to not pay the dealer and pay when you get to your state.
 

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Discussion Starter · #18 ·
We bought our JKU in Virginia and live in Maryland. Granted, those two states are next to each other and as such the dealer in VA is likely used to it more than a dealer in KY is used to MI. Anyway, I have always had to pay the taxes on the state the vehicle is registered in and not in the state the vehicle was purchased in unless that state was going to forward the money to the state the vehicle is purchased in. That would have to be clearly spelled out in writing in this case.
Either way can work, but you need to make sure that if you pay the dealer they will pay your state. Easier would be to not pay the dealer and pay when you get to your state.
I agree apparently Michigan is a reciprocal state and they have to collect the taxes and then forward it to Michigan
They will give me something showing I paid.
Plus there saying they will send me the paperwork within a week and I have to take it and get it registered here.
They don’t do any of it for me.
 

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I'm in California and years ago I purchased a car from out of state. That state did not charge me sales tax, when I went to register it at my DMV here they collected the sales tax. What did bother me was that they made me get it smog checked, even though the engine had the 50 state emissions sticker on it.
 

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This is done a thousand times a day by commercial entities. Vehicles are bought wherever, and when they will be operated in another state, they must be base plated where operated. So you buy one place and register another. This gets you the base plate and requires that sales taxes have been paid as per the registering state. You could pay in the selling state and normally the registering state allows for the taxes paid elsewhere. Normally you simply pay the tax where you register. You do this by asking the dealer to not register it and to give you the “MSO” or Manufacturers Statement of Origin. This is essentially the original title. You surrender this when registering the vehicle. It is the same as you taking your title to another state and saying I moved here and need to register this vehicle. You don’t pay tax again on what was already paid, though that state might have other taxes that will be due.
 
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