If I were to purchase a car on ebay that is in another state, am I responsible for paying sales taxes on that car in either the seller's state, or my own state? Let's assume the said purchase is from a dealer.

If so, why is it different than say purchasing something off amazon.com where I never pay sales taxes because I'm out of state?

Thanks,
/gC

 

Check with your state DMV, they ( DMV) might hit you up for the tax when you title / register the car. The Seller should only charge you their tax if the seller was a dealer.

 

I have bought several cars online from private as well as dealers. All from other states. They will give you a bill of sale or a signed title, and you take it to your dmv for registration etc. Always email seller to confirm. If they try to charge you sales tax, check with that state dmv before paying it. Its always best to contact seller first.

 

Well, I'm in TX , I think the car in question is in Iowa.. I'll have to look it up and see.

 

If they collect the tax in the state that you buy - make sure that it will be transfered to your state. If you do it wrong you could have to pay the taxes to both states.
Some states have issues with where delivery is made.
Also in California you can not register a used car with less than 7500 miles so make sure and get the information first.

 

Get temp. tags (plates) and drive it home. Don't let Iowa dealer charge tax, since you'll be paying Texas sales tax when you reg. car.

 

In WA, they will give you credit for tax paid to another state. So if I bought in OH and somehow paid tax, WA would credit me that tax and only charge me if the WA tax was higher than OH. Your state may vary.

 

In theory, you should be paying the state tax rate of where your primary residence is. Also, I believe that the tax you pay on the purchase of a new car is deductible on your income taxes if you itemize. So, make sure to check w/ your tax accountant at year end and include that in there if eligible.

D =)

 

Probably only your own state's tax. I live in NJ and bought my car in PA, and all I paid was the Jersey sales tax

 

Sales tax is only deductable in 2004 and 2005 tax years unless congress extends it. You can only take this deduction if you forgo the deduction of state income tax. A no-brainer for me here in WA (no state income tax) but a real tradeoff anyplace that has state income tax.

 

Nice. Thanks for all the responses. I spoke with the dealer and told them not to bill me for the taxes and that I would do it myself. They seemed to be ok with it. I'll find out later today.

-/gC

 

To answer the last part of your question, in most states, you actually are legally responsible to pay "use tax" on things bought out of state for which you did not pay sales tax, such as mail order/internet; the use tax generally is equal to what the sales tax would have been had you bought it in state.