[tmcternan]

Just curious about who's responsibility it is to collect the State Sales Tax and License/Registration Fees when purchasing out of state when a Courtesy Delivery is involved. I haven't been able to determine a set practice and it appears to vary from one dealership to another. I'm located in California where the sales tax rates vary from one county to the next and I'm wondering if federal law requires the selling dealership to collect any sales tax, though located in a completely different state in a different part of the country where the car will be delivered.

I've purchased two different cars, one came from Connecticut and the other from a Ferrari dealership in Oregon and neither collected any California sales tax or registrations fees. I'm aware Oregon has no sales tax, which shouldn't have impacted the transaction either way. So, I was required to pay all state sales taxes and licensing fees directly to the State of California Department of Motor Vehicles (DMV) in person. It wasn't a problem and went very smoothly. In the next few months I will be purchasing my car from a forum dealership on the east coast and the car will be shipped directly from the BGAP to a nearby dealership close to my home where. I assumed all the state sales tax and license/registration fees would be collected by the courtesy delivery dealer and submitted to DMV for me. This practice seems allot more logical to me. Can anyone shed any light on this for me?

 

[C7 Zo6]

Your local DMV when you go to register. Or the delivering dealership

 

[Norm]

Your local DMV when you go to register. Or the delivering dealership

I have to agree. It's been my experience where ever you title the vehicle, that's where the tax goes.

 

[mjw930]

The best answer is "it depends".

Your dealer will know the laws their state requires them to follow, they can't vary from that. Recently states have entered into reciprocity agreements and will only collect an amount up to either the maximum the buyers state will collect or the selling states rate, whichever is lower. You then pay the difference in your state when you register it. In many states the dealer has no option, they are required to collect sales tax for every sale, even if it's a out of state buyer. In other states they don't, it's a state by state issue.

For me, buying from Les Stanford in Michigan, they collected 6% and I paid an the additional $25 due here in Florida when I went to the DMV to register the car.

Courtesy delivery shouldn't be any different since the courtesy dealer is not selling you the car or acting as a broker. They are simply providing a service not much different than an oil change. All your paperwork and money related to the purchase, including title work should be done by the selling dealer and overnighted to you. That may even include a temp tag from the selling state so you can drive it off the dealers lot. You then go to the DMV and complete the paperwork. It's possible the courtesy dealer could do that for you (for a fee) but why would you want them to do that? I certainly wouldn't.

Just call your dealer and ask them their procedure. All the forum dealers do this every day, why guess?

 

[mjw930]

Your local DMV when you go to register. Or the delivering dealership

Never at the delivering dealer unless you are contracting them to do the title work, they aren't selling you the car and they can only collect tax on something they sell.

 

[BOBSZO6]

Kerbeck!

"We take care of all it! We collect tax and tags and we register the car. We have an office out there that handles it. All your dealer has to do is prep the car and hand you the keys. Hopefully they will go over the car with you, but I don't know what they offer."

So, in my case, I will pay my courtesy delivery dealer the courtesy delivery fee and am done.

 

[smajicek]

I had my coutesy delivered to california and the dealer here took care of it all

 

[Mike [email protected]]

TF

Just curious about who's responsibility it is to collect the State Sales Tax and License/Registration Fees when purchasing out of state when a Courtesy Delivery is involved. I haven't been able to determine a set practice and it appears to vary from one dealership to another. I'm located in California where the sales tax rates vary from one county to the next and I'm wondering if federal law requires the selling dealership to collect any sales tax, though located in a completely different state in a different part of the country where the car will be delivered.

Just call me next week and ask me and I will set you straight.

I've purchased two different cars, one came from Connecticut and the other from a Ferrari dealership in Oregon and neither collected any California sales tax or registrations fees. I'm aware Oregon has no sales tax, which shouldn't have impacted the transaction either way. So, I was required to pay all state sales taxes and licensing fees directly to the State of California Department of Motor Vehicles (DMV) in person. It wasn't a problem and went very smoothly. In the next few months I will be purchasing my car from a forum dealership on the east coast and the car will be shipped directly from the BGAP to a nearby dealership close to my home where. I assumed all the state sales tax and license/registration fees would be collected by the courtesy delivery dealer and submitted to DMV for me. This practice seems allot more logical to me. Can anyone shed any light on this for me?

Just call me direct next week and I can answer you.

 

[tmcternan]

Thanks Mike, I'll definitely do that. I've been very reluctant to call you because I know how busy you are having fun..