Sales Tax for out of state purchase - Truck
#1
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Joined: Mar 2013
Posts: 1,102
Likes: 11
From: Granger, Indiana
Hi everyone -- only 12 more weeks of this winter stuff
I have a sweat deal pending on an out of state 2004 GMC 2500 Durmax Truck. I have never purchased anything like this out of state. I was told that I would be paying Illinois State tax and then when I bring the truck to Indiana that I have already paid the sales tax and nothing would be charged when I do the license
stuff.
Is this true -- I'm an absolute idiot regarding this
Thank you everyone for your help/comments
3pointstar
I have a sweat deal pending on an out of state 2004 GMC 2500 Durmax Truck. I have never purchased anything like this out of state. I was told that I would be paying Illinois State tax and then when I bring the truck to Indiana that I have already paid the sales tax and nothing would be charged when I do the license
stuff.
Is this true -- I'm an absolute idiot regarding this
Thank you everyone for your help/comments
3pointstar
#2
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Joined: Dec 2013
Posts: 903
Likes: 1
From: East Texas Waterfront- running errands if anyone asks
In my experience this is correct. when you get the truck home to register you will show proof of paid sales taxes and will not have to pay them again. You will have to pay for registration. Thats how it works in TX.
#4
Yes, check with your state's DMV/BMV.
If you are taking the vehicle out of state, you should be able buy the vehicle without registering in that State. But only your BMV can confirm this. I looked on the IN BMV website, and no good information there.
I can tell you this...
Don't overpay at the dealership. You will play hell getting a refund.
i.e.: If the IL sales tax is 7%, and the IN sales tax is only 5%; you will play hell getting that 2% overpayment back.
BUT, if the IL sale tax is 4%, and the IN sales tax is 7%, you will have to pay the difference when you to to register.
If you are taking the vehicle out of state, you should be able buy the vehicle without registering in that State. But only your BMV can confirm this. I looked on the IN BMV website, and no good information there.
I can tell you this...
Don't overpay at the dealership. You will play hell getting a refund.
i.e.: If the IL sales tax is 7%, and the IN sales tax is only 5%; you will play hell getting that 2% overpayment back.
BUT, if the IL sale tax is 4%, and the IN sales tax is 7%, you will have to pay the difference when you to to register.
#5
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Joined: Aug 2013
Posts: 783
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From: Madison, Ms
Very simple, a state can not charge their state tax to an out of state person that is registering it in another state. They can collect your state sales tax and send it to your state Tax collector, or they will not charge you any tax and you will have to pay it to your State tax collector once you register it.
#6
I bought my truck in Kansas and did not pay any tax there. I paid sales tax in Nebraska when I registered it.
The dealer said since I was an out of state buyer that he did not have to collect it. I would ask the seller/dealer about it.
Some states force the dealerships to collect and send in the funds to ensure they get the state the tax money.
The dealer said since I was an out of state buyer that he did not have to collect it. I would ask the seller/dealer about it.
Some states force the dealerships to collect and send in the funds to ensure they get the state the tax money.
#9
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Joined: Mar 2008
Posts: 661
Likes: 130
From: pa
All the above is correct if purchased from a dealer, I've purchased boats and trucks out of state and some collected the sales tax for my state at time of delivery, while others just collected the purchase price and I had to pay sales tax at time of regestration, both work fine as long as you can prove you've prepaid





