#1
Hey, I live in the U.S. (Mississippi to be exact) and my parents are finally buying me a car. They told me that the car I buy has to be in Mississippi because of some sales tax or something if we buy it out of state. Anyways, I know nothing about any of that stuff but I found a car within our budget in Alabama and I was wondering what difference buying a car out of state makes. Do you have to pay more for taxes? I'm confused. Thanks to anyone who can clear all this up for me.
#3
Quote by The_Clansman_
You pay the local state's sales tax


I'm still confused... My parents said I couldn't get a car out of state. So I assume it costs more or something? Would I have to pay both states' taxes? Or just Alabama where I bought it? Or just Mississippi where I live?
#4
Id assume Mississippi as higher tax than neighbouring states and so yer dad is just trying to get you a better deal.... i could be wrong though...
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#5
you don't pay the sales tax until you register the car, which would be in the state you reside
#6
Quote by Born Headless
I'm still confused... My parents said I couldn't get a car out of state. So I assume it costs more or something? Would I have to pay both states' taxes? Or just Alabama where I bought it? Or just Mississippi where I live?

You would only pay Alabama's. If I buy a car in Nevada I pay Nevada sales tax only. If I buy a car in Oregon no sales tax

Edit:
Buy it in Alabama!!!
http://www.taxadmin.org/FTA/rate/sales.html
3% cheaper sales tax.
If it's a used car there is no sales tax... or at least shouldn't be
Last edited by The_Clansman_ at Nov 21, 2009,
#7
The ICC controls all that stuff.

You'd only pay the state that you bought it in's taxes.
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#8
each state has their own sales tax and if you buy something from another state you pay their sales tax instead which being from NJ i have no clue what mississippis or alabamas sales tax are but apparently alabamas must be higher


or heres a better thought.. why not ask your parents their reasoning since they are the ones who gave you the restrictions?
Last edited by WaveCaster97 at Nov 21, 2009,
#9
You definitely pay the sales tax of the state you register the car in not where it was bought
#10
Quote by captain Trips
You definitely pay the sales tax of the state you register the car in not where it was bought


This^^^
You pay the tax on it when you register your car for the title transfer. So basically when you transfer the title in your name. That's when you pay the tax. New or Used..
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