When you buy an out of state car, the state that taxes the sale is most often the state where the buyer lives. That’s because the state sales tax to a vehicle is often applied along with the titling, license plate and registration process. The seller may or may not tell the buyer about the need for paying state sales tax where the vehicle will be garaged. In fact, the seller may not even know the tax rate for the buyer’s home state, but when the buyer goes to register the vehicle, the state Department of Motor Vehicles will usually assess a state sales tax.
When You Buy an Out of State Car, Which State Taxes the Sale?
December 7, 2010
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