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Re: Sales tax out of state? (archive)
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Posted by Bruce on January 15, 2001 at 10:38:57:

In Reply to: Re: Sales tax out of state? posted by Lurker on January 14, 2001 at 23:06:28:

You will pay sales tax to your state when you go to register the car.

How's that work? I looked at all the registration stuff (AZ) and I couldn't find anything about that. Is it some kind of luxury or use tax?

No, it is a sales tax. When you buy the car out of state you tell the dealer you will be exporting it from the state and they will not collect any sales tax from you (and they may make you sign a piece of paper outlining your intentions). You go to your home state and go to your tax assesors office to get tags for it and they will charge you sales tax on the car. I have heard that California may have some deals with other states that they will coolect sales tax and send it to that state but that is hearsay.

It doesn't make sense, since state governments collect sales tax from the seller, not the buyer.

The dealer collects sales tax on the state's behalf from you. The buyer pays the sales tax NOT the seller. Just like going to the grocery store, the grocery store collects sales tax and then pays the state.


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