Sales tax for out of state purchase

[Campnjoe]

So I recently purchased a 29m in Alabama. The dealer charged me almost 4% in sales tax. I questioned this as I live in North Carolina and he assured me that NC would recognize the payment and I wouldn't have to pay it again. Well the NC dmv did not agree and they charged me 3% when I registered the rv. So now I am out 7% and both parties are pointing fingers. Has anyone had to deal with this before? I shouldn't have to pay taxes twice.

[rynosback]

Originally Posted by Campnjoe

So I recently purchased a 29m in Alabama. The dealer charged me almost 4% in sales tax. I questioned this as I live in North Carolina and he assured me that NC would recognize the payment and I wouldn't have to pay it again. Well the NC dmv did not agree and they charged me 3% when I registered the rv. So now I am out 7% and both parties are pointing fingers. Has anyone had to deal with this before? I shouldn't have to pay taxes twice.

Sounds like you need to visit the comptroller to get a refund.

[16ACE27]

What do the two States' Laws say about collecting sales tax?

If Florida you are charged sales tax on large purchases (like cars) based on the tax rate of your residence. That may be the same in NC.

But some states mandate the collection of sales tax based on the place of purchase; maybe Alabama is that way.

And then their is the point of credit for sales tax paid to another state at time of purchase when you go to register. What does NC say about that?


Do some research, get your ducks in a row and see if you have a case to complain about.

[EA37TS]

Did you get a temporary or permanent license plate in Alabama? If so the vehicle was registered there and sales tax charged.

NC did not charge you a sales tax. They charge a Highway use Tax of 3 percent.

You may have gotten bit by buying outside your home sate.

[Bob Denman]

I agree: you've got to know all of the rules...

[Campnjoe]

Originally Posted by Bob Denman

I agree: you've got to know all of the rules...

To be honest, I thought I did. It was my understanding that you paid sales tax when you register the vehicle. According to the nc dmv, this is true. According to them I should not have paid taxes in al but the dealer is telling me that the dmv is wrong and that they, the dmv, should have credited my account for the taxes already paid.

[kwplot34]

I live in Missouri and just purchased a motor home in Florida. Florida charged us a little over 4% in sales tax, when we registered the RV at home we got credit for what we paid in Florida for state sales tax and just had to pay local/city sales tax. Since Florida sales tax is more than Missouri sales tax the overage was credited towards our local tax and was only out of pocket another $100.

[TripleGGG]

Expand the section titled Vehicles Purchased Outside of North Carolina by clicking on the plus sign. If vehicle is registered within 90 days you get credit for taxes paid in another state.

https://www.ncdot.gov/dmv/title-regi...s/default.aspx

[16ACE27]

Originally Posted by kwplot34

I live in Missouri and just purchased a motor home in Florida. Florida charged us a little over 4% in sales tax, when we registered the RV at home we got credit for what we paid in Florida for state sales tax and just had to pay local/city sales tax. Since Florida sales tax is more than Missouri sales tax the overage was credited towards our local tax and was only out of pocket another $100.

4%? Florida State Sales Tax is 6% on the difference between the selling price and the trade-in price. Did you have a trade?

[Ford1]

A few years ago i purchased a vehicle in Illinois. I found out that Ilinois and Florida had a reciprocity agreement. As a result, Illinois collected the Florida Sales Tax and gave me a form (receipt) to present to Florida DMV so I didn't have to pay any sales tax when I went to get my tags in Florida.

[TurnerFam]

are you sure that NC tax rate is not 7%, so they charged you the 'difference' between what the dealer collected, and what they charge?

when we purchased our Palazzo in Texas, they collected the 6.75% TAVT fee(similar to sales tax, but Georgia changed from direct 'sales' taxes on vehicles to a new TAVT 'fee' that year, back in 2014), submitted it to GA, and GA had it already applied to our registration when we returned and asked for our 'TAG'... the Texas dealer had given us a 60day 'temp' tag until we returned.

[kwplot34]

Originally Posted by 16ACE27

4%? Florida State Sales Tax is 6% on the difference between the selling price and the trade-in price. Did you have a trade?

Yes.

[RonB]

Bought our motor home in South Carolina no tax charged got gouged in Illinois 6.5% Illinois sucks on taxes.

[RonB]

Originally Posted by RonB

Bought our motor home in South Carolina no tax charged got gouged in Illinois 6.5% Illinois sucks on taxes.

Thankful we only got charged county tax or it would have been almost 10%

[RonB]

Originally Posted by RonB

Thankful we only got charged county tax or it would have been almost 10%

Plus pain in the ass Illinois requires a written affidavit that motor hone not in flood or hurricane to get clean title

[RonB]

Originally Posted by RonB

Plus pain in the ass Illinois requires a written affidavit that motor hone not in flood or hurricane to get clean title

I’m on a roll. RV plates in last 15 years went from $48 to $101 to $151. A trailer went from $18 to $118. And Illinois gas tax doubled see what happens in a Democratic State never solving problems

[Campnjoe]

Just an update on this. Had the nc dmv speak to the dealer. Turns out the dealer did not use the proper form when reporting my taxes paid. So now I have to wait for the new form and hopefully I will get some money back.

[IDguy]

Originally Posted by Campnjoe

To be honest, I thought I did. It was my understanding that you paid sales tax when you register the vehicle. According to the nc dmv, this is true. According to them I should not have paid taxes in al but the dealer is telling me that the dmv is wrong and that they, the dmv, should have credited my account for the taxes already paid.

The dealer is wrong. You need to talk to the head of the dealership. They should have sent the money to your State’s DMV. Ask for proof.

When I purchased an RV out of State a couple years ago they did that.

[UAV]

Here in Colorado, whether you buy a pack of gum or a very expensive motorhome you pay based on residency.

For where I live in a suburb just west of Denver, it is 7.95%.

Under some circumstances one can get that reduced by 2.9% based upon the weight and what type of vehicle you buy.

Either way, highway robbery and they not only know it, the politicians are most proud of it.

And they wonder why people get plates in Montana, change purchase prices so the tax is less, etc. The State did crack down on the whole Montana gig a few years back.

I almost bought our rig in Texas in which case they would have collected no sales tax since they knew I was paying it here in Colorado.

[Teacher53]

I live in Nashvillle and bought in Florida. I paid the taxes the same day I registered the vehicle in Nashville