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When do you pay sales tax on a vehicle purchased out of state?
I live in New Jersey but just bought a used car from a dealer in Ohio. The dealer did not charge me sales tax because I would have to pay NJ sales tax when I register the car. I registered the car today, but was not charged sales tax. I think the DMV registered the car as if I was transfering the title from OH to NJ (as you would do when moving between states), and not as a new purchase. Did I just get away with avoiding the taxes, or will they pick up on it in the system and charge me down the road? And can they even do anything since the car is already registered? Am I in the clear?
The car is financed. The bank mailed me the OH title. I gave it to the DMV. They said they were going to transfer it to an NJ title, which would be kept on file (along with the original OH title) with the state of NJ, and that the new NJ title would also be mailed back to the bank.
Someone definately screwed up, I just don't see how it can come back to me now that the car is registered. Like I said, I think it was processed as a state to state transfer and not a car sale.
3 Answers
- Kevin7Lv 41 decade agoFavorite Answer
Some states don't have sales tax and frequently the government screws up. We the people don't know all of the government's laws so if they fail to take our money it is their loss.
- mccoybluesLv 71 decade ago
What did they do with title when you presented it to them to transfer ownership? How could they not be aware that the car was a new purchase if the registration wasn't already in your name.
I think someone screwed up and they'll figure it out soon enough and send you a bill for the taxes.
- ?Lv 45 years ago
Hi, upon registering the car on your state, you'll be charged income tax at the fee paid. i've visible dealers attempt to accumulate income tax although it used to be a personal sale.
