How does sales tax work?
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Tourer
Joined: Nov 2009
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How does sales tax work?
I know this is kinda basic, but I can't quite figure this out:
I live in New Mexico. If I buy a bike off ebay from a dealer in another state, I don't have to add sales tax to the price of that sale.
If I physically travel to a neighboring state, like TX or AZ, and buy the bike from a dealer, do I have to add sales tax to the price?
I live in New Mexico. If I buy a bike off ebay from a dealer in another state, I don't have to add sales tax to the price of that sale.
If I physically travel to a neighboring state, like TX or AZ, and buy the bike from a dealer, do I have to add sales tax to the price?
Cruiser
Joined: Jul 2010
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Dont know about New Mexico,but in NY if you buy a motor vehicle out of state,you have to pay sales tax at the time you register it in this state.Ordinary retail sales from out of state can go untaxed,its not legal,but if no one reports the sale there is no tax collected,but since a motor vehicle has to be registered,if you cant prove you payed tax at the time of purchase they get you at the DMV.
Club Member
Joined: Sep 2010
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From: Walker WV by way of NEW YORK CITY
You only pay sales tax IN the state that you are registering the vehicle/bike in. when you go to MV before you get tags you pay Tax/sales for that state you live in and registering the bike
Road Master
Joined: May 2009
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From: Brentwood, TN
Your County Clerk will be sure the sales tax is paid prior to giving you tags. If bought without paying tax they will collect at registration. Tax is usually based on sales price less trade in and sometimes is based on a sliding scale that the higher the vehicle price the percentage goes down.
Last edited by TNCarters; Jan 9, 2011 at 03:40 PM.
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From: The Internet (& Dyer, Indiana)
If you are having to ebay it, don't do it from a dealer.
1) Dealership price will always be higher than that from the personal party.
2) No sales tax when buying from a personal party.
(Assuming used vehicle here).
1) Dealership price will always be higher than that from the personal party.
2) No sales tax when buying from a personal party.
(Assuming used vehicle here).