Community Forums

Jpdkmd · 06-06-2015, 05:00 PM

If you live in Delaware which has no sales tax and purchase out of state what sales tax are you liable for? Also is there an excise tax thats imposed?

BFlinn181 · 06-06-2015, 08:32 PM

Delaware doesn't have a sales tax, but when you register a vehicle from out of state you pay a, "Document Fee of 3.75% of purchase price." Your annual registration fee is $40 plus $6.40 for each 1,000 lbs over 5,000 lbs.

Jpdkmd · 06-06-2015, 11:37 PM

So if I understand right,if I purchase an Rv in Pa.but live in delaware I have to pay 3.75 % of the purchase price for document fees to the state of Delaware.If I buy it in delaware is the document fee waived?

Gary RVRoamer · 06-08-2015, 06:08 PM

You also have to ask what the sales tax rules are in PA, if that's where you buy it. Most states charge their own sales tax on any purchase within their borders. Your own state then typically gives a credit for taxes paid elsewhere against its own sale tax, but that would be meaningless if Delaware has no tax anyway.

Route 66 · 06-08-2015, 06:37 PM

If you register your new vehicle in Delaware you will pay 3.75% of the purchase price to Delaware. It's called a Documentation Fee.

If you register your used vehicle in Delaware you will pay 3.75% of the NADA value. DMV will look in the NADA book when you register.

It doesn't matter what state you buy your vehicle in, when you register it in DE, you have to pay the fee.

Quote:

Delaware law allows out-of-state vehicle owners a credit on a sales tax, transfer tax or some similar levy paid to another state on the purchase of a vehicle within 90 days prior to registering the vehicle in Delaware. The vehicle must have been titled/registered in the other state within 90 days prior to registering the vehicle in Delaware. The 90-day rule is strictly enforced.
Delaware residents who purchase a vehicle from an out-of-state dealer will not receive credit for any taxes paid. The majority of states exempt out-of-state buyers from their taxes but some states collect taxes on all vehicle sales. Residents need to be aware that they may be taxed twice on vehicles purchased from some states.

Peterrrr · 06-09-2015, 01:17 PM

Quote:

Originally Posted by Gary RVRoamer

You also have to ask what the sales tax rules are in PA, if that's where you buy it. Most states charge their own sales tax on any purchase within their borders. Your own state then typically gives a credit for taxes paid elsewhere against its own sale tax, but that would be meaningless if Delaware has no tax anyway.

Further, some states allow an out of state delivery where you do not pay the sales tax and can not register the vehicle in the selling state for a specific period of time.

Route 66 · 06-09-2015, 01:24 PM

Unfortunately, Delaware has no such policy.

Quote:

Originally Posted by Peterrrr

Further, some states allow an out of state delivery where you do not pay the sales tax and can not register the vehicle in the selling state for a specific period of time.