[FutureHellcatOwner]

For those of you that have bought from Jake or Koons or any other dealership out of the state you live in, did you have to pay state sales tax twice? For example: I live in Texas. If I bought from Jake, do I have to pay Kentucky State sales tax and then Texas State sales tax when I register it? Thanks!

 

[Spoolin]

You can either elect to pay the Jake or Koons state tax or you can elect to pay the taxes when you get your registration in Texas. You don't pay it for each state. If you elect to pay the tax at Koons, for instance, and their tax is 6% and Texas' tax is 7%, you would then pay the difference. If you elect to pay the taxes at Koons, again for instance, and theirs is 6% and Texas' taxes are also 6%, it's a wash. If you elect to pay the tax at Koons, again for instance, and their tax is 6% and the tax in Texas is 5%, you will lose out on that 1% tax you paid. Chose wisely.....

 

[Blickie]

For those of you that have bought from Jake or Koons or any other dealership out of the state you live in, did you have to pay state sales tax twice? For example: I live in Texas. If I bought from Jake, do I have to pay Kentucky State sales tax and then Texas State sales tax when I register it? Thanks!

Talk to the Finance Person @ the dealership. They'll know the laws and if there is any reciprocity or deferment with your home state, but plan on paying Sales Taxes somewhere...

 

[BHoward]

I live in Texas and I have bought several vehicles out of state. Sometimes the dealership I'm buying from will pay the state taxes for me and sometimes I will pay the taxes when I go the tag office to register my vehicle.
I will say it is easier and more convenient for me to pay everything at the tag office here in Texas rather than have the dealership do it.
When a out-of-state dealership pays your taxes there's a higher likelihood something won't be right. One time the great state of Texas had a bit of a problem finding the taxes paid from a dealership in Michigan so I was there an additional 20 minutes.
So in the end if you just elect to pay your own taxes in your own state you do not pay the state in which you are purchasing your vehicle any taxes or registration fees, you will pay that when you go to the tag office in Texas.

 

[FutureHellcatOwner]

I live in Texas and I have bought several vehicles out of state. Sometimes the dealership I'm buying from will pay the state taxes for me and sometimes I will pay the taxes when I go the tag office to register my vehicle.
I will say it is easier and more convenient for me to pay everything at the tag office here in Texas rather than have the dealership do it.
When a out-of-state dealership pays your taxes there's a higher likelihood something won't be right. One time the great state of Texas had a bit of a problem finding the taxes paid from a dealership in Michigan so I was there an additional 20 minutes.
So in the end if you just elect to pay your own taxes in your own state you do not pay the state in which you are purchasing your vehicle any taxes or registration fees, you will pay that when you go to the tag office in Texas.

Will the dealer "allow" you to purchase without paying the sales tax?

 

[Vet Rider]

When I bought from Jake a few months ago, They paid my Florida state taxes for me and it was all included in the deal as if I was buying locally. I went home with a temp tag from Jake, but had to wait for them to send all the paperwork and check to Florida before my tag transfer was complete. Took a few weeks, but one day the new registration showed up for my existing tag and had the new car's info on it.

If they are able, they will want to pay the taxes for you at the dealership. Thats what Jake's FI guy told me.

 

[MJS73]

If you live in Illinois it's not an option, Illinois requires the dealer to collect the Illinois tax and send it to them.

 

[Slidd]

Will the dealer "allow" you to purchase without paying the sales tax?

Used to be no problem but lately more and more states want to collect and then forward to your home state. I'd avoid that if possible so you just have to ask the dealer if you can take the car without paying any tax. Definitely do not pay any tax to the dealer's state, any tax they force you to pay must be clearly noted as being collected to be forwarded to your home state.


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[OKSS]

Some states have laws and agreements with other states on vehicles tags/taxes. Usually, the dealership will charge some kind of fee for doing this also.

Always best to do it all yourself in your home state if you can IMO.

 

[Ross61]

Jake is set up to collect CA taxes, Koons is not.

WIth regards to CA (all states' laws vary), if you buy in another state which collects its state's taxes then, when registerring in CA, you pay the difference + the registration fee ($250-ish). If the other state's taxes are higher than CA (yea, good luck with that!!), then you just pay the registration fee (no refund of the difference).

 

[Tannehill]

You can either elect to pay the Jake or Koons state tax or you can elect to pay the taxes when you get your registration in Texas. You don't pay it for each state. If you elect to pay the tax at Koons, for instance, and their tax is 6% and Texas' tax is 7%, you would then pay the difference. If you elect to pay the taxes at Koons, again for instance, and theirs is 6% and Texas' taxes are also 6%, it's a wash. If you elect to pay the tax at Koons, again for instance, and their tax is 6% and the tax in Texas is 5%, you will lose out on that 1% tax you paid. Chose wisely.....

This is incorrect. I honestly don't have time to write a long explanation right now.

You do only pay your state's taxes though.

 

[Tannehill]

Some states have laws and agreements with other states on vehicles tags/taxes. Usually, the dealership will charge some kind of fee for doing this also.

Always best to do it all yourself in your home state if you can IMO.

If the car will have a lien ( you are financing any part), dealership cannot release the title to you and "just let you take off and handle it when you get home ".

 

[HemiMetal]

You do only pay your state's taxes though.

That's how I understand it, too. California charges sales tax based upon your residential zip code and applies local taxes in addition to state taxes. Jake or Koons will write your locality into the sales contract and tax should be applied accordingly. But if in doubt, why not call either (or both) and confirm it through their finance department?

 

[Spoolin]

Used to be no problem but lately more and more states want to collect and then forward to your home state. I'd avoid that if possible so you just have to ask the dealer if you can take the car without paying any tax. Definitely do not pay any tax to the dealer's state, any tax they force you to pay must be clearly noted as being collected to be forwarded to your home state.


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Unless things have recently changed, that's not how that works.......They don't "forward" the paid taxes from the state you purchased the vehicle, to the state you live. If you paid the sales tax out of state, that state gets the tax and it shows on your purchase agreement. This shows your state that you paid a tax in the state where you purchased the vehicle and it won't be collected in your state.

 

[Spoolin]

This is incorrect. I honestly don't have time to write a long explanation right now.

You do only pay your state's taxes though.

The hell it is incorrect....... I just purchased my Trackhawk out of state and I elected to not pay the dealers state sales tax and instead I paid it in my state. I had the option to do either.

Also, when I purchased my S2000 years ago out of state, I paid that states sales tax at the dealer and it was 1% lower than my home states sales tax. When I went and got my tags in my state, I had to pay that 1% difference.

 

[Spoolin]

If the car will have a lien ( you are financing any part), dealership cannot release the title to you and "just let you take off and handle it when you get home ".

That's incorrect as well..... I just did this when I purchased my Trackhawk.

 

[Ross61]

That's how I understand it, too. California charges sales tax based upon your residential zip code and applies local taxes in addition to state taxes. Jake or Koons will write your locality into the sales contract and tax should be applied accordingly. But if in doubt, why not call either (or both) and confirm it through their finance department?

Last heard, Koon will not sell to a CA resident and must collect 100% of VA's taxes (might not be Koons, might be a VA state law thing).

If purchased out of state, and the out-of-state taxes are collected, Buyer only pay the difference in taxes, if/when CA taxes are higher.

I just went down this path when determining if to buy from Jake or in San Diego (Jake will collect CA taxes and registration fees).

 

[PolePosition]

For those of you that have bought from Jake or Koons or any other dealership out of the state you live in, did you have to pay state sales tax twice? For example: I live in Texas. If I bought from Jake, do I have to pay Kentucky State sales tax and then Texas State sales tax when I register it? Thanks!

You ONLY pay the taxes for the state in which you register the car. You do not have a choice or option to elect to pay taxes in the dealership's state or anywhere else--anyone who says differently has no idea what they're talking about. I bought my car from Dan Cummins in Kentucky (which has sales, property, and usage tax on new cars), but I (the dealership) registered the car in New Hampshire where there is no tax; consequently, I did not pay any tax on the purchase.

 

[GOING TO HELL 19]

When I bought from Jake a few months ago, They paid my Florida state taxes for me and it was all included in the deal as if I was buying locally. I went home with a temp tag from Jake, but had to wait for them to send all the paperwork and check to Florida before my tag transfer was complete. Took a few weeks, but one day the new registration showed up for my existing tag and had the new car's info on it.

If they are able, they will want to pay the taxes for you at the dealership. Thats what Jake's FI guy told me.

That's exactly how mine went when I purchased from Koon's. Had to write a check for almost 5k over the agreed price to cover taxes and tags.

 

[HemiMetal]

Last heard, Koon will not sell to a CA resident and must collect 100% of VA's taxes (might not be Koons, might be a VA state law thing).

If purchased out of state, and the out-of-state taxes are collected, Buyer only pay the difference in taxes, if/when CA taxes are higher.

I just went down this path when determining if to buy from Jake or in San Diego (Jake will collect CA taxes and registration fees).

I don't think the OP is from CA. I was just using California as an example and how they fold in local sales tax on top of the state tax for a car purchase. For example, base CA state sales tax is 7.25%. I live in San Diego where local tax is 0.5% on top of the state sales tax. So when I buy a car, my sales tax is 7.75%