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Discussion Starter #1
Hello Everyone:

So if I purchase an FJ it will be out of state. It's worth the discount for me to drive a little bit. I will most likely purchase it from NC and drive back to IL.

The IL state tax is 7%. Should I pay this at the NC dealership or IL DMV when I register?

I hope some folks are familiar with this than me....:)

Thx,
PJ
 

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You will pay it in the state you register the vehicle in. Get a transfer tag from the state you purchase in to get it home
 

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fka fatbrat40
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Pay the tax in IL , I purchased my FJ out of state and paid the tax where I live. I used the plates that were on the FJ until I received the plates from my local taxing office
 

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Discussion Starter #4
So, I was told the following "Since your financing the vehicle, we have to record that sales tax here and we will charge you the sales tax. I will have the dealership cut you a check for the amount you paid in taxes. You can than deposit and pay the tax at your DMV."

Honestly...as I wrote the quote above (which was told to me) it just doesn't sound right...thoughts?? :confused:
 

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fka fatbrat40
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I Don't know the tax code in NC but I would call my local tax office and ask this question. They will know all of the answers to your questions. I bought a Motor Home last year out of state and financed it paid the taxes at my local taxing office.
 

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The best way is to contact your local DMV office and let them tell you. Different states have different laws. If you buy a car in SC but live in GA/NC/TN/VA you DO NOT pay sales tax at the dealer. You pay upon registration in your state. (I know, I do all the title work for the used car lot I work for)

Many dealers will tell you you have to pay it there and you do pay it only to have to pay ot again upon registration in your home state. They are hoping it will get lost in the paperwork and you will not notice then it goes onto the dealer's profit... It is a very common practice and if caught they will refund your money....in about 4-6+ weeks :(
 

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The best way is to contact your local DMV office and let them tell you. Different states have different laws. If you buy a car in SC but live in GA/NC/TN/VA you DO NOT pay sales tax at the dealer. You pay upon registration in your state. (I know, I do all the title work for the used car lot I work for)

Many dealers will tell you you have to pay it there and you do pay it only to have to pay ot again upon registration in your home state. They are hoping it will get lost in the paperwork and you will not notice then it goes onto the dealer's profit... It is a very common practice and if caught they will refund your money....in about 4-6+ weeks :(

I live in Charlotte and bought my previous vehicle in SC and they put the taxes in the financing for me. I guess it depends on the dealership. Of course the ones in Rock Hill, SC are willing to work it out since they are so close to the state line. Here in NC all new vehicles registering with the state pay a highway usage tax which is a one time registration tax that is 3% of the cars value. It's probably different for other states, but this should shed some light as to what happens around here.
 

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So, I was told the following "Since your financing the vehicle, we have to record that sales tax here and we will charge you the sales tax. I will have the dealership cut you a check for the amount you paid in taxes. You can than deposit and pay the tax at your DMV."

Honestly...as I wrote the quote above (which was told to me) it just doesn't sound right...thoughts?? :confused:
Yeah, that doesn't sound right.

If paying taxes is required, AND they are going to immediately write you a check for the amount that you pay in taxes, the net effect of this is that no money changes hands between you and the dealer - you are just going to pay more in interest over the course of the loan. The only people getting anything out of this is the bank you use for financing. I'd also be surprised that they could list you as having paid taxes if they are not collecting said taxes and turning them into the state. The Highway Use tax is similar to the Sales & Use tax collected by the state. For example, if I buy something on the internet and they do not have a presence in NC, I do not pay taxes to them on the internet sale; however, I am required to pay taxes on that item when I next file my taxes.

If you lived in NC you would not be required to roll the taxes into the amount financed - you could pay the taxes (or any other amount) out-of-pocket and finance the rest.

I just called my mom to check this - she works for the NC Dept. of Revenue. She says that doesn't make any sense to her either. As far as she is aware their is no state requirement regarding this; however, it could be a funky requirement of the financing bank. They may require that taxes are shown somewhere on the documents detailing the purchase. That being said, she is an auditor for the state so she is very familiar with tax law, but please don't take that as 100% as she deals more with corporate tax accounts.

Also, she purchased her current vehicle in Charleston, SC and financed a portion of it. She paid no taxes in SC and received a temporary tag from the dealer. The dealer then sent her the paperwork necessary to allow her to register the vehicle in NC.

How do I title & register a vehicle?

Highway Use Tax (HUT)

There are two links to the NCDOT website registering and titling a vehicle and HUT. The Highway Use Tax is a payment as part of registering and titling a vehicle in NC - which you will NOT be doing.

As stated before you should contact the Illinois DMV or equivalent as well as contact NC DMV. That's the safestway to avoid any issues. Hope this helps and good luck with the purchase.
 

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OK so we bought the FJ here in WA (8%) but we whipped out our Oregon Id's and paid no taxes because Oregon is a non-tax state. Now here's where we got ouselves into a pickle. I now have to get Washington plates, but since it was bought in another state, we still have to pay the WA tax which will now be more expensive then just paying the taxes in the first place.
SO...moral of the story, just pay the taxes and escape the headache.
 

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A couple of weeks ago I bought my FJ in NC and I live in MI. I had to pay a $10.00 30 day temp plate fee and no taxes. I will go to my local DMV next week and fork over the tax and registration fees. Did the same with my motorcycle a few years ago too.
 

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Discussion Starter #14
So, I emailed the dealership that it doesn't make sense for me to pay sales tax. That based on many folks I reached out to (folks on this forum :) ), I should really be paying tax where I register the vehicle.

I also mentioned (in a nice way) for their finance depart. to reach out to a few neighboring dealerships regarding out of state purchases.

I haven't heard back from them, but silly to see how this whole thing may not happen due to a misunderstanding over TAXES!

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One thing I didn't like...last week I picked out a FJ on their website. Based on the VIN number the salesperson stated it's here. Great because it was 1/15 and their website stated a deliver date of 1/16. I went back online tonight, found the same VIN for a vehicle that indicates a delivery date of 1/19.

I don't know if this is normal or not...doesn't feel normal but I'm new to this... :confused:


Thx,
PJ
 

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Well I certainly hope everything works out. It could be a delay due to the inclement weather we've all been having.
 

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Hey Phatjoe,
PM'd you the info from my transaction...hope it helps. :cheers:
 
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