Is there any advantage to buying a car in a different state, if ...

[Caradana]

that state has no sales tax?
Would I have to report the purchase to my home state?

 

[Disney_1derland]

that state has no sales tax?
Would I have to report the purchase to my home state?

When you go to register the car in your state you will probably have to show the receipt and pay sales tax based on that. That is how it works here

 

[marybet]

We live in Alabama and bought our car in Florida. We paid Alabama taxes. Most bordering states do that. I used to live in Ohio and we bought our cars in West Virginia and the same thing applied. I am sure you would pay sales tax when you have the car registered in your state.

 

[Caradana]

darnit. Really need to move to Delaware.

Thanks.

 

[katerkat]

Yup, you pay the taxes in the state you register it in. (Washington had a problem with people picking up Oregon PO boxes just to avoid taxes.) We bought our car in Alabama, paid Mississippi taxes, then had a fun time proving to Washington it was in our possession longer than 90 days so we didn't have to pay sales tax there, too.

 

[bicker]

Same here in MA. If you purchase your car in NH, you'll pay MA state sales tax when you register it.

 

[pixiemomma]

We buy our cars in Delaware and live right over the border in Maryland. We have to pay Maryland sales tax. I think Delaware buyers are charged a 2% dock fee instead of sales tax, since of course, there isn't any sales tax in Delaware.

 

[Breezy_Carol]

What pixiemomma said. We live in MD right next to DE. When we buy cars in DE we pay the MD sales tax to register them in MD.