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Old 10-08-2021, 05:01 PM   #1
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Who pays the sales tax when buying an RV in AZ?

I think it’s pretty clear that if you buy a used RV from a private party in AZ, there is no sales tax. BUT…the consensus was that if you buy from a dealer, you would be liable for the sales tax. That’s not the way I am understanding this paragraph from the AZDOR.GOV

https://azdor.gov/sites/default/file...culator_fs.pdf

Q: I purchased my vehicle from an online dealer. The dealer has a business location in Arizona but did not include any tax on my bill of sale. Do I owe use tax?

A: No. Because the online dealer is an Arizona business, the dealer is responsible for the tax due on the sale of the vehicle. The dealer should report and remit TPT to Arizona Department of Revenue (ADOR). You do not owe use tax on the purchase even if the bill of sale does not show an itemized tax amount. Arizona Revised Statutes (A.R.S.) § 42-5155(F).

Am I misreading this?
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Old 10-08-2021, 07:02 PM   #2
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You paid the sales tax, it was included in the price of the vehicle. It may have not been broken out separately but it was in there somewhere.
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Old 10-08-2021, 07:08 PM   #3
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Quote:
Originally Posted by lllkrob View Post
You paid the sales tax, it was included in the price of the vehicle. It may have not been broken out separately but it was in there somewhere.
That’s was I was thinking also. The (hidden) costs are just passed to the buyer but for so long, people were saying that the buyer would pay the tax…I got the impression that people were actually paying the tax on top of the purchase price.
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Old 10-08-2021, 07:15 PM   #4
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For individuals who purchase a vehicle from an out-of-state dealer or manufacturer, the Arizona Department of Transportation (ADOT) will require, at the time of vehicle registration, proof that tax was paid in the state of purchase, and that the amount of state tax paid is equal to or greater than the applicable Arizona use tax rate. If tax was not paid in the state of purchase, or was less than the Arizona use tax, ADOT will require that the use tax be paid at the time of vehicle registration.


Last paragraph in 'Understanding Use Tax/AZ'
https://azdor.gov/individual-income-...anding-use-tax
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Old 10-08-2021, 07:16 PM   #5
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Depends on how the deal is written up.


I PROMISE, you are the who who paid for it!
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Old 10-08-2021, 07:21 PM   #6
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I paid for the one I bought in Arizona and I'm from Michigan.

That only talks about who remits the tax payment to the state. There's nothing that says the dealer can't collect it for the agreed upon price or roll it into the out the door price.

One way or the other YOU will pay the tax, the dealer will send it to the state.
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Old 10-08-2021, 07:37 PM   #7
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You'll pay taxes some where, either where you bought it or where you tag it.
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Old 10-08-2021, 07:38 PM   #8
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Quote:
Originally Posted by Old-Biscuit View Post
For individuals who purchase a vehicle from an out-of-state dealer or manufacturer, the Arizona Department of Transportation (ADOT) will require, at the time of vehicle registration, proof that tax was paid in the state of purchase, and that the amount of state tax paid is equal to or greater than the applicable Arizona use tax rate. If tax was not paid in the state of purchase, or was less than the Arizona use tax, ADOT will require that the use tax be paid at the time of vehicle registration.


Last paragraph in 'Understanding Use Tax/AZ'
https://azdor.gov/individual-income-...anding-use-tax
As I stated in the original post…the dealer is in AZ….it’s not an out of state dealer.
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Old 10-08-2021, 07:48 PM   #9
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To all…I realize the dealer will pass the costs on to the buyer but I’m wondering if any actual Arizonians have bought a used RV from a dealer and whether they did pay tax on the purchase that was clearly shown as a tax on the contract. Sorry for the confusion.
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Old 10-08-2021, 10:36 PM   #10
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We have purchased a few vehicles here in AZ. It's pretty plain and simple. If you LIVE in AZ, and purchase a vehicle from a DEALER in AZ, you're GONNA PAY SALES TAX.
If you purchase a vehicle from a PRIVATE PARTY, you WILL NOT PAY SALES TAX, PERIOD.

Even if you live in AZ, but purchase a vehicle from a private party IN ANY OTHER STATE IN THE UNION, you WILL NOT PAY SALES TAX.

If you live outside AZ, and purchase a vehicle from a dealer IN AZ, you're gonna pay sales tax, according to the state you live in. If you purchase a vehicle from a private party IN AZ, you're gonna pay sales tax according to the laws of YOUR state.

IF the OP lives outside of AZ but purchased an RV from a dealer here in AZ, he will pay sales tax, based on what they are in the state he lives in. IF the state he lives in, has NO SALES TAX, then that's a whole 'nother ball game.

If the dealer did not break it down, and have it all lined out, line by line, on a standardized sales form for vehicle sales, then that's a shoddy dealership. About 99.9999999% of dealerships, vehicles, trucks, cars, motorcycles, space ships, submarines, all use the same sales form. The computers are programmed to fill out all the blanks with very little input other than pertinent numbers.
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Old 10-08-2021, 11:00 PM   #11
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A dealer does not ‘pay’ the sales tax.
A dealer ‘collects’ the sales tax for the state, then sends the money to the state.
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Old 10-09-2021, 12:12 AM   #12
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Quote:
Originally Posted by Mr Lars View Post
A dealer does not ‘pay’ the sales tax.
A dealer ‘collects’ the sales tax for the state, then sends the money to the state.
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Old 10-09-2021, 08:23 AM   #13
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Quote:
Originally Posted by FIRE UP View Post
We have purchased a few vehicles here in AZ. It's pretty plain and simple. If you LIVE in AZ, and purchase a vehicle from a DEALER in AZ, you're GONNA PAY SALES TAX.
If you purchase a vehicle from a PRIVATE PARTY, you WILL NOT PAY SALES TAX, PERIOD.

Even if you live in AZ, but purchase a vehicle from a private party IN ANY OTHER STATE IN THE UNION, you WILL NOT PAY SALES TAX.

If you live outside AZ, and purchase a vehicle from a dealer IN AZ, you're gonna pay sales tax, according to the state you live in. If you purchase a vehicle from a private party IN AZ, you're gonna pay sales tax according to the laws of YOUR state.

IF the OP lives outside of AZ but purchased an RV from a dealer here in AZ, he will pay sales tax, based on what they are in the state he lives in. IF the state he lives in, has NO SALES TAX, then that's a whole 'nother ball game.

If the dealer did not break it down, and have it all lined out, line by line, on a standardized sales form for vehicle sales, then that's a shoddy dealership. About 99.9999999% of dealerships, vehicles, trucks, cars, motorcycles, space ships, submarines, all use the same sales form. The computers are programmed to fill out all the blanks with very little input other than pertinent numbers.
Scott
So you live in AZ and have purchased a used RV from a dealer and they listed the sales tax on the sales contract on a separate line? Ok, good to know. Thanks! 👍
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Old 10-09-2021, 08:39 AM   #14
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Quote:
Originally Posted by tankcj View Post
I think it’s pretty clear that if you buy a used RV from a private party in AZ, there is no sales tax. BUT…the consensus was that if you buy from a dealer, you would be liable for the sales tax. That’s not the way I am understanding this paragraph from the AZDOR.GOV

https://azdor.gov/sites/default/file...culator_fs.pdf

Q: I purchased my vehicle from an online dealer. The dealer has a business location in Arizona but did not include any tax on my bill of sale. Do I owe use tax?

A: No. Because the online dealer is an Arizona business, the dealer is responsible for the tax due on the sale of the vehicle. The dealer should report and remit TPT to Arizona Department of Revenue (ADOR). You do not owe use tax on the purchase even if the bill of sale does not show an itemized tax amount. Arizona Revised Statutes (A.R.S.) § 42-5155(F).

Am I misreading this?
This is interesting because the FAQ is clear and comes from the Department of Revenue. They apply the laws. Looking at the quoted statute: A.R.S. § 42-5155(F). It reads:

F. A receipt from a retailer or utility business that maintains a place of business in this state or from a retailer or utility business that is authorized by the department to collect the tax, under such rules as it may prescribe, and that is for the purposes of this article regarded as a retailer or utility business maintaining a place of business in this state, given to the purchaser as provided in § 42-5161 is sufficient to relieve the purchaser from further liability for the tax to which the receipt refers. (bold italics added)

§ 42-5161 provides that: The tax required to be collected shall be shown separately on the invoice or other proof of sale.

For many states, such statutes are in place to relieve the buyer of liability if the retailer does not remit the tax. In other words, if the receipt lists tax, you're safe. In the FAQ, the receipt does not refer to tax, yet the Department of Revenue interprets it as still enough to alleviate the buyer's tax liability.

I suspect that there may be a state court case behind such interpretation, requiring legislation to change the law. Perhaps there is a mechanism at the time of registering that flags that dealer for audit. Or the FAQ may be wrong.
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