bluec230

Here's a question for you guys, I live in the Seattle area, 8.5% sales tax UGH! Good news is in Oregon, there is no sales tax, which could save me a good 2K on my car and allow me to get COMMAND on my new C230. My question is this, technically you're supposed to pay sales tax when you enter the state of Washington for anything you purchase in Oregon. i.e. You can go down to Oregon purchase a vehicle without sales tax, but you're supposed to be a good citizen when you come back and claim the car. Is there anything that COMPELLS one to do this? For example, would they impose sales tax on me when I tried registering the car in Washington? Or is it just an honor system when they assume you as a good citizen would. Anybody have experience with this topic?

trench

My guess is they'll get you when you try and register it - I'm pretty sure this is the way it works in most states.

tommy

Honor and taxing jurisdictions generally aren't good friends. I've moved states a couple of times with one car or another (good thing that I left New Orleans - too close to MB-BOB), and each time that I went to another state and tried to register my car, they have taken what I paid for sales tax, either on the initial sale, or on a subsequent re-registration in another state, and applied that to what it would have cost in the new state. And I either paid the difference, or nothing (no refunds for going from high sales tax rate state to lower one, of course).

I'd call Washington's Registration Dept. or DOT, or whatever it is, and ask them. They'd give you the lowdown. I've heard of people using this to their advantage, but I think those are urban legends (or rural legends if you're in Texas).

SoCal240/6

In California, you have to pay the sales tax when you register the car in California.

I'm sure that Washington would be the same. Otherwise, it would be very difficult to own a car dealership anywhere in Southern Washington. Everyone would just to to Oregon to buy their cars. Washington's car biz and tax revenue would be hurt badly.

Plus, if that would work, you would not need to ask the question. It would be well known in Washington, because everyone would be doing it. You are not the first to think about it!

zimmer26

That would be great and everyone and their mother would go to New Hampshire/Oregon to buy cars there. Why don't people in the East do this? Simple: You pay tax based on what state and county the car is registered to. If you have an Oregon address (or if you can somehow fabricate an address) then you're golden otherwise you're taking it in the rear- 8.5% - that really blows! Sorry to be the bearer of bad news. I don't know think there is any other way around it. Actually its probably where you're licensed to as proof of address- so it'd be tough not to mention shady- but not impossible.
_______________________________
If it wasn't for taxes I'd be rich(relatively).

gab

I live in CA and I bought my car in OR where I used to live and I have friends' address to register my new car. I think CA laws dont require to pay sales tax if you prove that your car is already 6months old before you register it.

MB-BOB

I bought my MB in Missouri and registered it in Texas, and paying the taxes was part of the process. People are always trying to get around this, because it is expensive on a big ticket item. But, for the same reason, the states make it their business to ensure you pony up.

My sister-in-law bought a car in CA while moving to Seattle, and registered it in WA and paid WA taxes (apparently cheaper that CA taxes). I'd be surprised if WA doesn't catch you when you register the car.

"Death and taxes, death and taxes..."

Flashman

The only way this works, is if you register the car in the state with lower tax and leave it registered there. I know of people who legally live out of a Mailbox Etc box in one state (registration, license, etc.) but actually reside in another state. Since Mailbox Etc will even forward mail for a fee, they never need to visit the state they are registered in. There are other issues involved with trying to do that type of thing, but I'm not a lawyer...

MB-BOB

In the few states I've lived in, they give you about 30-days or so to convert registrations. If the police catch you backing out of your driveway in Seattle driving your car registered in OR evidenced by the OR plates, you stand a good chance of getting a ticket, in addition to a deadline for registering the car in WA and paying taxes. The one notable exception is for those in the military, who are allowed to keep "official" residences in states other than where they live.

I wouldn't want to fly "home" to OR to vote, either.

revstriker

I've heard of "snowbirds" on the east coast getting tickets for registering their cars in Florida when their legal residence was in another state.

Flashman

There's is a guy here in my office in Orlando... he has a nice mid'80s ferrari he uses as his daily driver. His car is registered in NASSAU (Bahamas) as it has been since he came back from a brief stint over 5 years ago.

Yes, Florida has the sames rules as other states, you only get a brief period (10 days I think?) before you need to re-register your car locally.

I don't think my friend cares, and so far he doesn't seem to have had any problems.

MB-BOB

I'll bet if he runs into RandyB he'll be in deep dark doo doo...

SoCal240/6

Yep, same thing in California.
Some people register their car in Oregon (using a friend's address, etc.), then drive their car around in California forever, with the Oregon registration and plates.

I wouldn't do that, though. Many cops are onto that scam, and having an Oregon plate on your car in California is an invitation to have cops closely scrutinize you.

You are far more likely to get noticed and ticketed. And, if you get pulled over and your driver's license shows a California address you are likely going to get questioned by the DMV.

Flashman

RandyB knows where I work.

bluec230

So how's this for a scheme
I use my friend's address who lives in Oregon, get my car registered at that address, put Oregon Plates on my car for a year (no sweat, tons of Seattle people with Oregon plates), fill out a change of address form for MY last name and my friend's address, so that all mail to my name to that address is forwarded to me And in 1 year, I re-register in the state of Washington. All this is worth it if you're sales tax would be $2700 as mine would be.

PS this reminds me of that twix commercial with the theme "smart cookie". They show these 2 high school kids, and you know what all high school kids dread (their report cards mailed to their parents). So most kids try to get to the mail and hide it right. But these 2 kids march over to the post office and fill out a change of address form for their names haha And then they flash SMART COOKIE at the end of the commercial

Drew

It's guys like all of you ... who keep guys like me ... driving new MB's !!!

Seriously now: the rules regarding registration/taxes can be different for each State.

Generally, one state can require that "all persons who are domiciled in that state, register and pay sales tax on newely purchased vehicles. The key with a law like that is "What is the definition of domiciled. It usually means "where you reside, with the intent to remain permanently".

Other states may require only that you simply reside (have a "residence" ... which may be a home; apartment) in that state in order to be required to pay for registration/taxes for newley purchased vehicles. A Mail boxes Etc. or a friend/family member's address is likely to work in this case ... but if your caught (usually after you've had an accident ... and the damn attorney's for the guy who hit you dig up your 'scheme')... you'll most assuredly pay a stiff fine and could face charges for Fraud by the state ... and loose any chance of collecting from the accident.

Sure would suck if you got into a real car accident ... and suffered real injuries ... and couldn't collect your legitimate damages ... simply because you wanted to save a few bucks.

And other states may even require registration/taxes to be paid if the vehicle is kept in the state for a certain time period.

Best advice I can give is to go find a competant attorney in your state ... pay him a couple of hundred dollars to give you his legal opinion on what you plan to do ... before you do it. Consider it a 'one time insurance premium'.

Flashman

Just think of what would happen if you crashed into Drew with your out-of-state-registered-to-beat-sales-tax-gimmick car...

DrMike

For you folks from other states moaning about sales taxes, in CT I not only have the pleasure of paying 6% on new purchase, but each and every year that I own the car, I get to pay "personal property tax". This tax is the same rate as my house, currently about $23 per $1000 of value. So, there is an additional $700 which declines slightly as the car depreciates. Of course, due to the MB good value retention, I get to pay more taxes.

Hmmm, maybe I should give the car to my son going to college in New Hampshire and have him let me drive it.

revstriker

That brings back some memories. In Mass, it was the same. They called it "Excise Tax" there. Every year, we would have to pay based on the value of the car. This was in addition to the sales tax that was due when you first registered your car. All this money collected, yet the roads never seemed to get repaired! But of course the politicians got nice paychecks for their 10 hour work week!