Community Forums

Pudgy Camper · 03-17-2023, 04:42 PM

Getting ready to purchase a used Diesel Pusher and its a possibility we may end up buying something out of state. We live in Arizona and have seen a few coaches that are exactly what we are looking for in other states. From what I understand, Az will require us to pay a 5.2% tax when we get back home and register it in our name. This isn't necessarily a deal breaker and will only end up being around $3k but I would like to know ahead of time. Is this something that went into affect in the last 10 yrs?

I purchased a truck in CA about 10 yrs ago and didn't have to pay any taxes.

Anyone from AZ that can provide any feedback? Does this tax apply to purchasing from any other state outside of AZ?

shootist · 03-17-2023, 04:49 PM

You generally pay the sales tax in the state you live/register it in. Not the state you purchase it in.

Jkwilson1989 · 03-17-2023, 05:27 PM

Quote:

Originally Posted by shootist

You generally pay the sales tax in the state you live/register it in. Not the state you purchase it in.

Though every state is different, many states require dealers to collect tax on every vehicle they sell. They give a statement of the tax paid. When you go to register in your home state, you pay any difference in the tax collected in the selling state and what is owed in your state. If the state you bought it in has a higher tax rate, you just eat it.

Jkwilson1989 · 03-17-2023, 05:29 PM

Quote:

Originally Posted by Pudgy Camper

Getting ready to purchase a used Diesel Pusher and its a possibility we may end up buying something out of state. We live in Arizona and have seen a few coaches that are exactly what we are looking for in other states. From what I understand, Az will require us to pay a 5.2% tax when we get back home and register it in our name. This isn't necessarily a deal breaker and will only end up being around $3k but I would like to know ahead of time. Is this something that went into affect in the last 10 yrs?

I purchased a truck in CA about 10 yrs ago and didn't have to pay any taxes.

Anyone from AZ that can provide any feedback? Does this tax apply to purchasing from any other state outside of AZ?

It’s 5.6%, which is a fairly recent reduction, and you almost certainly pay it on any vehicle you purchase or have purchased regardless of where you purchased it.

Pudgy Camper · 03-17-2023, 05:30 PM

Quote:

Originally Posted by shootist

You generally pay the sales tax in the state you live/register it in. Not the state you purchase it in.

Thanks Shootist, I understand that the buyer pays tax in the state that they live. Just wondering why it didn't apply to the truck I bought out of state and if it applies to any state outside of AZ.

txcpl · 03-18-2023, 06:24 AM

You will pay taxes to the state you title/register it in. If you title it in state A and then move the title to state B, or just register it in state B, you will have a tax bill in both states. Now some states have an agreement amongst themselves to accept another's tax collections while others do not. Some type of reciprocal actions. Another method is to complete a bill of sale, along with all the paperwork required from both states and request from your state a temporary tag just to get it back to your state in order to get it titled and registered. You can also buy it out of state, park it in a storage lot, take the paperwork to your state DMV, title/register/ tag it and the return to the other state to drive it home. There's lots of ways to skin this cat, depending upon your wants and needs.

tankcj · 03-18-2023, 06:30 AM

If you purchase from a dealer, you owe tax. If you purchase from a private party you will not owe any sales tax in AZ. With that said, you may owe sales tax in the state you made the purchase regardless of whether it was thru a private party or dealer.

George Schweikle · 03-18-2023, 07:13 AM

Just another thing to check. Does your stare require a fire marshall inspection for a RV purchased out of state?. I had to have one before I could license the new to me motohome.

TXiceman · 03-18-2023, 07:41 AM

Last RV we purchased out of state was in Kansas. They collected no sales tax and we got a temporary tag for the RV. We are licensed in Texas and had to pay the Texas sales tax to register the RV in Texas.

I believe some states will collect the tax for neighboring states, but you do get credit for the tax when you register in your home state.

Ken

**hamm2018** · 03-18-2023, 07:59 AM

We bought a Can Am Spyder in Surprise February 2022 and paid taxes on it. But since we are South Dakota residents, Arizona collected SD tax, not the higher Az. tax rate.
So when we registered the motorcycle in SD, we did not owe taxes, we just showed our bill of sale with the SD taxes paid.

ArtJoyce · 03-18-2023, 08:05 AM

It my depend on the state you buy it in. Some states have agreements with neighboring states that you pay the sales tax in the state you buy it in and you get a credit in your home state.

L2D2 · 03-22-2023, 08:51 AM

We formed an LLC in Montana and registered there, saved about 7K.

Alpine36 · 03-22-2023, 09:10 AM

I’m not sure there isn’t a state that doesn’t collect some form of sales or excise tax when you purchase a vehicle of any sort, from anywhere, and register it. Washington State is somewhere around 9%, depending on what county you reside in. They try to use “book value” as a pricing guide for taxation, no matter what sales price the bill of sale states it sold for.

Captain8 · 03-22-2023, 06:49 PM

Quote:

Originally Posted by L2D2

We formed an LLC in Montana and registered there, saved about 7K.

This is pretty standard for large purchases, Montana doesn't have sales tax. Just like what others said you always pay sales tax. When buying out of state the best option is to not pay sales tax when our chasing if at all possible then pay when you transfer title. Not all dealers allow this and depends on state and dealers rules. It gets complicated when you pay taxes out of state and need to get credit from what's already paid.

I've bought a bunch of cars out of state and had all kinds of issues. Sometimes even dealers will mail me a check with the title so I can pay. It also depends if you get a loan and the lenders rules. Their lien needs to be filed with the title in your state and the tax needs paid to your state before they can issue the title. It's a risk for the lender to give you the title and hope you have it filed correctly with the lien. There's companies dealers can use for out of state title work.

Check your title work on your truck to see if taxes are paid.