Question about buying an out of state vehicle from a dealer.

jdustu

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I found the truck I want, and it's in Omaha. I put the deposit down, and I'm hoping to get it next week.

Here is my question: The transaction is taking place in Omaha, Nebraska, so I owe sales tax in that state, correct? I went to a tax seminar last week, and that's what they said. I would owe the difference in rate to Michigan(.5%), because Nebraska's tax rate is 5.5% and not 6%.

Here is why this is a big deal. I'm using the 25k voucher for the truck. If the purchase price is less than that amount, I can use the difference to help pay for sales tax. So I'd be able to put about $800 towards the tax with the leftover voucher money.

The salesman in Nebraska is telling me that they send all tax and title info to the (DMV)SOS in Michigan, and that I'd pay taxes here. I wouldn't be able to use the voucher to help with the cost. I told him that the transaction is taking place in Nebraska, so I owe the taxes to NEBRASKA. He tells me that on the ebay auction it states this:

"Taxes and Registration fees: A $279 Documentation (DOC) Fee is added to the final price. Sales, Property, Registration, and any other Taxes are paid in the State in which you register and license the vehicle. All "New" vehicles must be registered and sales tax paid within the United States. We do not sell new vehicles outside the United States, so please do not ask.Out of state buyers are responsible for all state, county, city taxes and fees, as well as title service fees in the state that the vehicle will be registered. All taxes and fees must be paid in full in order for vehicle to be titled and registered."

That's fine, but I didn't buy it through ebay! I made no bid. I found it there, but this is not an internet transaction. I emailed him, called him, put the deposit down and I will physically finish the deal there. I will make the purchase in Nebraska. So he told me I could talk to their legal people on Tuesday. I don't need legal people, I need tax experts!
 
you bought the truck in nebraska you own nebraska sales tax the .5% you pay to michigan when you title the car here as a usage tax , have them issue you a nebraska title then just transfer it to michigan no .5%
 
Now I found a site that says you have to pay sales tax in whatever state you first register the vehicle in, and that you need to have an address in that state. Not an official site, just some "geek" blog.
 
Josh-Depending on state law most states collect which ever tax is less.

Example:

In Ohio say the sales tax is 6.5% and you live there. We here in Michigan would collect 6% then you would be repsonsible for the .5% when you registered it in Ohio.
 
I thought you had to pay the taxes to the state that it will be plated/titled in

That is what it is looking like now. This same question came up in that tax seminar, and they didn't mention anything about where the vehicle is first titled. But the more I look online, that seems to be the deal. I talked to the salesman again, and he is going to try to do something, but I'm guessing I'll just be paying all the taxes in Michigan.
 
Josh-Depending on state law most states collect which ever tax is less.

Example:

In Ohio say the sales tax is 6.5%. We would collect 6% then you would be repsonsible for the .5% when you registered it in Ohio.


See, that's what I was thinking originally. I keep finding statements online(nothing official though), that say you need to pay the taxes in whichever state you first title it in.
 
See, that's what I was thinking originally. I keep finding statements online(nothing official though), that say you need to pay the taxes in whichever state you first title it in.

The dealer should give you a Temp tag so you can register it here in Michigan, since you won't be getting it registered in Neb.
 
FYI you should call the Sec of State in Neb. They will have all the correct info. I'm just telling you what WE do in cases like that.
 
As Trunk said, if the transaction is taking place in NE, you owe the state sales tax. You should get a temp tax and a receipt for the taxes. When you transfer everything here, they'll only charge you the 1/2% tax and a god awful amount for your plates.
 
Thanks guys. I know I should to contact Nebraska, I'm just frustrated because it's a holiday weekend and we were planning on getting out there tuesday. I wasn't thinking this was even going to be an issue until I heard from him today.
 
I bought a car at a dealer in ohio and they had to collect michigan taxes from me. they told me they just started doing that for michigan at the time.
 
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