vehicle registration/out of state sales tax

Discussion in 'Off-topic' started by gtmatt, Oct 1, 2010.

  1. gtmatt

    gtmatt Member

    I purchased a vehicle in Indiana and went to my county tax office to title and register it. I bought it from a dealer and paid Indiana sales tax. Based on what I had researched beforehand, I understood that since I paid tax at least equal to the rate in my county of residence in Georgia, I would not have to pay "sales tax" in Georgia to register it. However, the tax office people stated that I must still pay a "sales tax" to Georgia for said vehicle. They say there are reciprocal agreements which usually allow a credit of 4% when paid to out of state dealers, which is supposedly the case with Indiana, so I am responsible for 3% of the purchase price before I can register the vehicle.

    Now, I have looked more and have seen all kinds of different answers to this. Indiana's information says I have to pay the sales tax to them, and that Georgia is forbidden by the Constitution's Commerce Clause from taxing me again and thus must give me a credit. Georgia's site is ambiguously worded but could be understood to mean that they don't care what I paid to another state, I have to pay it all again when registering. Some things I have seen say the dealer should either send Georgia a check for the tax in my county of residence or give me one back after the purchase that covers the amount, so I can pay it when registering.

    Anybody have knowledge of this? I really do not want to have to pay another several hundred dollars, as that was not part of my calculation of whether the vehicle was worth the price. A 10% tax rate is not very nice.

    Beyond the issue directly at hand, how can a state even purport to charge a sales tax on an item not purchased in said state? I am not seeing a difference here between Georgia trying to tax my vehicle transaction 3 states away and me going across the border to South Carolina and buying some groceries and Georgia saying I have to pay a sales tax on those groceries if I want to eat them while I'm Georgia. How does this even begin to make any sense?

    This has got me steamed. Unfortunately I only have a few days left on my temporary tag before it will be illegal to drive my recent purchase without registering here.
  2. spotco2

    spotco2 New Member

    Been there, done that.

    You'll have to pay Ga tax on the amount on the bill of sale before you can tag it.

  3. fran

    fran New Member

    I bought a car in Jacksonville several years ago and I had to give an extra 3% to Camden County. That was $800 dollars I did not plan on parting with. Thats why I just drove 80 miles to get a car in Georgia instead of 30 miles to Jacksonville.
  4. rankhornjp

    rankhornjp Active Member

    I recently bought a car in FL and paid 4% sales tax at the dealership, my county charges 7% so I had to pay the difference (3%). I didn't have to pay the whole 7% in GA, they gave me credit for what I paid to FL.
  5. mrtopher1980

    mrtopher1980 New Member

    Obviously each state is going to vary a bit but I have worked at several dealers in NJ and I know all surrounding states were the same. If you were a NY resident and bought car from a dealer in NJ you paid no sales tax to NJ at the time of purchase you paid all sales tax to NY when you applied for tags in your home state. Ny NJ PA all have out of state temporary registration tags which no sales tax is paid to receive. You can even get them by going to a motor vehicle office for a person to person out of state sale so they can get him, no tax is paid.

    If you bought a car in IN and paid sales tax there I don't see how this is any different then if you moved from another state to GA having already paid sales tax and not having to pay again when you transfer all your tags. I transferred several cars I owned while living in NJ to GA with no sales tax since it was already paid. If you bought a can of paint in IN and brought it back to GA would you be responsible to pay sales tax here? When you buy stuff mailorder they don't charge you tax because the tax being applied is supposed to be for the state of final destination, yeah technically all the stuff you buy online you are supposed to pay report and pay tax on. Don't see how this is any different, I'd dig further before paying a dime really seems odd.
  6. NTA

    NTA Well-Known Member

    Is there an ownership elapsed time after the out of state purchase which registration is allowed without tax ?

    Apply to new and used cars bought out of state ?

    Apply only to cars which have never been registered in another state ?

    When I moved to GA from out of state my car registration in GA required no tax (the one equal to the states' sales tax difference) - what hole did I fall through ?
  7. drtybykr

    drtybykr New Member

    A buddy of mine from Pa. came to Ga, and purchased a used vehicle, and paid no Ga tax. He was required to pay tax when he returned to Pa.
  8. mrtopher1980

    mrtopher1980 New Member

    Just had a thought but what are the chances that this "waived" 4% is just the county saying we don't take STATE sales tax but we want our 3% cut or whatever it may be in your county. I don't know the laws but is that something they could possibly try and claim they make the rules up on regardless of the state?

    For as much of a bad rap the NJ MVS got it was much simpler, especially when I could renew and get a non picture driver license in the mail or send in my 35 bucks to renew my tags every year and call it a day, inspection was AFTER you renewed and free! Nothing varied from county to county which also just seems highly ineffecient and has to be a waste of money.
  9. psrumors

    psrumors Well-Known Member

    Typical auto taxes.....everyone is going to get theirs, state and county......

    I once purchased a vehicle from Pensacola FL at the GM dealership. Paid them the 4% that they would transfer back to GA and then paid my County 3% upon registration.

    About 6 months later I received a bill from the state, apparently the dealership or FL didn't transfer the 4% to, which come to find out they are no obligated to do. I had to pay GA tax another 4%

    A real pain in the ass.