Triumphrat

andre955

Hello,
Help me understand about buying out of state to save money on state taxes. If I buy out of state and the dealer does not charge nstate sales tax as I don't live in the state (Wisconsin). When I register the bike in Michigan, I will then pay the tax for registering. Are these two different taxes? If I buy in my state, do I pay the dealer the state sales tax and then pay the state again for registering? How does it work?

Thanks,
-Andrejs

alanh

Dunno the details for Michigan but the State of Washington charges sales tax (actually "use tax", but calculated at the same rate as sales tax) on vehicles that are purchased out of state or that are purchased from a private party. The tax is paid at the time the vehicle is registered and it's in addition to normal license and transfer fees.

When a vehicle is purchased from a dealer, the dealer typically collects all of the state-mandated taxes/fees and files all of the transfer and registration paperwork with the state.

womcat

The tax you pay when registering is the sales tax that the out of state dealer didn't charge you. Your state will charge you sales tax regardless where you bought it. Somebody correct me if I'm wrong, but that's how it works here in KS.

The only way to really save money on buying out of state is to buy something you don't have to register, like a dirt bike. My last dirt bike I bought out of state and saved about $450.

Wombat

You are correct.
I purchased my Ural in WA state and had it shipped to Hawaii.
I did not pay any tax in WA but when it came to registering here, I was required to pay the tax.
One loophole that I found here (after) was that when registering my bike in Hawaii they ask if it was a gift.
If it is a gift , then no tax.
Tell them it is a gift from your wife.
YMMV

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Molinoman

Another thing to look at when registering is the difference in state taxes. When I bought my 2006 Gold Wing in AL I paid AL sales tax. When I registered in my home state of FL I paid the difference in the FL sales tax and the AL sales tax (Florida's sales tax is higher). You don't pay the full sales tax in each state, but your total sales tax would be what the highest sales tax is. The state is going to get their money unless, as previously mentioned, you live in Hawaii and say you got it as a gift...lucky dog.
Dennis

alanh

Yup. You have to make up the difference when you pay tax in a lower-tax state and register in a higher-tax state. However, you don't get a credit if you pay tax in a higher-tax state and register in a lower-tax state. (Funny how that works.)

GleaminTwin

Yes, it's true you can buy the bike initially in a lower tax rate state and you'll still pay the same sales tax on the new bike. But let's say you buy the bike completely stock and pay the tax same rate as your home state, and then you decide to buy a bunch of accessories shortly thereafter, then you'd pay the lower tax rate of the state where the dealer is selling to you, same applies to tax on labor charges going foward, so you'll save a little on sales tax down the road if you go to a dealer in a lower tax rate state.

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Asmith

Just starting the first of this year Nevada no longer charges you sales tax when you purchase a used motorcycle from an individual. Vegas

Freedom

Quite a long time ago while living in Utah, I travelled to Wisconsin & purchased a used Toyota p/up. The dealer commented, "You live in Utah, so we won't charge a sales tax. They can charge you there." Upon returning to Utah, I was registering the truck and the lady said, "You bought this truck in Wisconsin, so we won't charge you sales tax".

Is keeping your mouth shut the same as lying? My lucky day.

JH