Is there a way to avoid local sales tax?

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zxcvar

Guest
Greetings! My son is a US Airforce pilot. I want to buy him a new 2004
truck. We live in two different states. If I buy the car for him in my
state and register in the state where he lives, do I have to local
sales tax of my state? With thanks.
 
zxcvar wrote:
>
> Greetings! My son is a US Airforce pilot. I want to buy him a new 2004
> truck. We live in two different states. If I buy the car for him in my
> state and register in the state where he lives, do I have to local
> sales tax of my state? With thanks.


Probably depends on the states in question and where each side of the transaction will take place. Most states will refund
sales tax on purchases by non-residents if you file a sales tax refund form at the end of the year. Some states have no sales
tax, so this is another option (Oregon for example). Some states have rules that state is a car has been owned and registered
outside the state for a certain period, it may be transferred in-state at no additional cost. I think in California its
something like 6 months. So if you were to drive north to Oregon to buy a new vehicle (w/o sales tax) and then registered it
within CA before the time period expired, you would basically have to pay the same fees as if you had purchased the vehicle
in-state.

Check with the respective motor vehicles and sales tax organizations in the respective states and see what you can find out,
most have web sites with most regulations published.

--
Roger
 
Roger is right for most instances. However, every state has a military
rule. A GI can't be taxed twice. When you buy the truck, the tax has to be
paid where its bought. When it gets registered, if the state has a higher
tax rate, you'll have to pay the difference in the new state. If the new
state has a lower tax rate, you're just out the difference and should buy
the truck in his state in the first place. Sales tax has to be paid in the
state of purchase. There is one dumb thing not to do. Don't buy it in your
name, and then present it to him as a gift. Some states allow a vehicle
transfer from a parent with no tax due, but some states tax the gift at
market value.
..
"Roger Brown" <[email protected]> wrote in message
news:[email protected]...
> zxcvar wrote:
> >
> > Greetings! My son is a US Airforce pilot. I want to buy him a new 2004
> > truck. We live in two different states. If I buy the car for him in my
> > state and register in the state where he lives, do I have to local
> > sales tax of my state? With thanks.

>
> Probably depends on the states in question and where each side of the

transaction will take place. Most states will refund
> sales tax on purchases by non-residents if you file a sales tax refund

form at the end of the year. Some states have no sales
> tax, so this is another option (Oregon for example). Some states have

rules that state is a car has been owned and registered
> outside the state for a certain period, it may be transferred in-state at

no additional cost. I think in California its
> something like 6 months. So if you were to drive north to Oregon to buy a

new vehicle (w/o sales tax) and then registered it
> within CA before the time period expired, you would basically have to pay

the same fees as if you had purchased the vehicle
> in-state.
>
> Check with the respective motor vehicles and sales tax organizations in

the respective states and see what you can find out,
> most have web sites with most regulations published.
>
> --
> Roger



 
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