Tax Question on Out of State Purchase - Ferrari Life
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post #1 of 27 Old 01-08-2013, 02:47 PM Thread Starter
 
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Tax Question on Out of State Purchase

I live in Florida and am purchasing an F430 Spider from a Chicao-based dealership. I always understood that you don't pay tax on an out-of-state purchase, but rather pay your own state's tax when you register the vehicle. The dealership in Chicago is telling me that it will collect 6% for sales tax, and then I'll get credit for that when I register the car in Florida. Am I getting screwed?
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post #2 of 27 Old 01-08-2013, 03:52 PM
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I live in Florida and am purchasing an F430 Spider from a Chicao-based dealership. I always understood that you don't pay tax on an out-of-state purchase, but rather pay your own state's tax when you register the vehicle. The dealership in Chicago is telling me that it will collect 6% for sales tax, and then I'll get credit for that when I register the car in Florida. Am I getting screwed?
Can't give you informed opinion about Chicago ... but my experience is that if you purchase a car out state (I'm in Arizona) ... you have two options if you buy from a dealer.

1. Pay the out of state tax and then when return to Arizona, you demonstrate that out state taxes have been paid and Arizona does not charge you local sales tax.

2. Do not pay out state tax and when registering the car in Arizona, the state here will levy local sales tax (6.6%)

But, the statement that the dealer in Chicago is telling you that you have to pay their sales tax and then request refund seems a bit strange. I guess a person in Chicago or Illinois should weigh in.

Arizona does not levy sales tax if you purchase your car from a private party even if that private party is out of state.

Steve.
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post #3 of 27 Old 01-08-2013, 04:02 PM
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I think you're getting screwed. Taxes are typically paid in the state in which the vehicle is registered.
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post #4 of 27 Old 01-08-2013, 04:16 PM
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I concur
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post #5 of 27 Old 01-08-2013, 04:17 PM
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Originally Posted by mdhunter View Post
I live in Florida and am purchasing an F430 Spider from a Chicao-based dealership. I always understood that you don't pay tax on an out-of-state purchase, but rather pay your own state's tax when you register the vehicle. The dealership in Chicago is telling me that it will collect 6% for sales tax, and then I'll get credit for that when I register the car in Florida. Am I getting screwed?
If you drive it off the lot in certain states you have to pay the sales tax to that state.

If you have it shipped you have to pay the tax to the state where it is delivered.

Not sure you are getting screwed inasmuch as the sales person is clueless ... talk to someone in their finance department.

In Dallas I drove off the lot and later paid sales tax in Missouri but in California I had to have it shipped to avoid Cali sales tax.

If you are leasing it then it's a whole nutter story and the finance company has to do the paperwork for licensing because sales tax is paid monthly on the lease vs the entire sales amount.

If it's Gold Coast - wish you the best of luck

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Last edited by champagne612; 01-08-2013 at 04:23 PM.
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post #6 of 27 Old 01-08-2013, 07:27 PM
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If you drive it off the lot in certain states you have to pay the sales tax to that state.

If you have it shipped you have to pay the tax to the state where it is delivered.

Not sure you are getting screwed inasmuch as the sales person is clueless ... talk to someone in their finance department.

In Dallas I drove off the lot and later paid sales tax in Missouri but in California I had to have it shipped to avoid Cali sales tax.

If you are leasing it then it's a whole nutter story and the finance company has to do the paperwork for licensing because sales tax is paid monthly on the lease vs the entire sales amount.

If it's Gold Coast - wish you the best of luck
Lol at last sentence. I have never paid salestax when buying a car out of state, and shipping to my state. You pay the tax when you register it, unless you are buying from a dealership that has a location in your state.

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post #7 of 27 Old 01-08-2013, 07:57 PM
 
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call...

Call your local DMV. In MN, we pay when we register. i agree with the above stating that your sales person has no clue. i dont htink it will be too easy to get the dealer to refund your money when you are sitting at your local DMV trying to convince them that the chicago guys told you a totally dift story. good luck!

BTW, which car did you buy? i've been watching all the cars in chicago as they are only 6 hours away.
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post #8 of 27 Old 01-08-2013, 09:22 PM
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Rules vary but having purchased two cars in PA from MO, I paid MO tax in PA and the dealer did my registration, processing the MO tax for me. In my county this year only ( I think) I paid only the state tax (3% or so) but not the county ( usually another 3%) and saved on all fronts. I elected not to register in PA ( where we still have property) for that reason.

My understanding was that if you register the car in the purchased state you pay sales tax in that state. In order to not pay tax (again) the car must not be registered in your home state for a variable period (6 months- 1 year, varies). This dealer arrangement sounds like double taxation and you assume all risk for the tax paid.

Doug, when I bought a 911 in CA ( from MI), I paid for a transport tag and drove off the lot (Pioneer in Miromar) and drove home. I have forgotten whether I had to leave the state in 7 days I think but the tag was good for 30 days. That was 2001.


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post #9 of 27 Old 01-10-2013, 09:32 AM Thread Starter
 
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Originally Posted by champagne612 View Post
If you drive it off the lot in certain states you have to pay the sales tax to that state.

If you have it shipped you have to pay the tax to the state where it is delivered.

Not sure you are getting screwed inasmuch as the sales person is clueless ... talk to someone in their finance department.

In Dallas I drove off the lot and later paid sales tax in Missouri but in California I had to have it shipped to avoid Cali sales tax.

If you are leasing it then it's a whole nutter story and the finance company has to do the paperwork for licensing because sales tax is paid monthly on the lease vs the entire sales amount.

If it's Gold Coast - wish you the best of luck
Assume for a minute . . . hypothetically, of course . . . that Gold Coast is correct. Anything you can share with me . . . hypothetically as well, of course. If this forum is inappropriate, let me know and I'll provide an email address.

I'm a little set back on how to handle the issue. I love the car and have been looking for a 2009 Red/Tan F430 Spider at this price for about a year. This sucks.
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post #10 of 27 Old 01-10-2013, 09:56 AM
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At our Store here in Texas - we would actually contact the FL DMV and get all of the neccessary forms/fees etc - and do all of that for you. Easier for the customer (Dont have to make extra trips / wait on a reimbursement / get over or undercharged etc), and that way we know for a fact the vehicle was properly registered and taxed.

ANY Dealership can do this as long as local tax laws do not interfere - but it it does take extra time, effort and responsibility on the Dealers part....so No, not every dealer will do this.

I dont believe chicago has any laws keeping them from doing so....it will just be alot easier for that Chicago dealer to tax you locally to them...but at the expense of possibly making it a little harder on you.

Worst case scenario - you ask them to provide a "Out of state Purchase - tax exempt form" like Form 14-312 For vehicles purchased in Texas. Pretty sure most state would have a form like this....but then all of the responsibility is on you to get it taxed and titled yourself.
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post #11 of 27 Old 01-10-2013, 10:05 AM
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Assume for a minute . . . hypothetically, of course . . . that Gold Coast is correct. Anything you can share with me . . . hypothetically as well, of course. If this forum is inappropriate, let me know and I'll provide an email address.

I'm a little set back on how to handle the issue. I love the car and have been looking for a 2009 Red/Tan F430 Spider at this price for about a year. This sucks.
If it is Gold Coast, you better fly out and thoroughly check that car over. Their detail shop is horrendous! And I mean horrendous. I would have that car PPi'd and then some.

Studio 47 and Esoteric Detail are not far away, only about $400 enclosed trip from BGC. Make the deal contingent on an inspection and detail paid up front by BGC.

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post #12 of 27 Old 01-10-2013, 01:09 PM
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Here are all the rules you need. Took about 30 seconds online.

http://tax.illinois.gov/taxforms/Sal...x/ST-556-1.pdf

http://tax.illinois.gov/publications...trrc/st-58.pdf

The answer is yes, they must collect 6.00% tax at the dealership because Florida does not offer Illinois buyers an out of state purchase tax exemption.

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post #13 of 27 Old 01-10-2013, 01:35 PM
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Originally Posted by mdhunter View Post
Assume for a minute . . . hypothetically, of course . . . that Gold Coast is correct. Anything you can share with me . . . hypothetically as well, of course. If this forum is inappropriate, let me know and I'll provide an email address.

I'm a little set back on how to handle the issue. I love the car and have been looking for a 2009 Red/Tan F430 Spider at this price for about a year. This sucks.
It does suck!

Have they sent you all the service history on the car?

The other post by CBOND is how a dealer should handle an out of state sale if you request it.

Lake Forest and Continental in Chicago most likely won't look at the car or perform a PPI especially if it's from GC.

If you have a local shop you are going to have service your car fly one of the people to GC - best 1000.00 you will ever spend.

I won't state who - but another member that has posted in your thread went thru h*ll as have others trying to get the car back to what they were told it was.

Hope it all works out but if you waited a year already get the car you will be happy with down the road.

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post #14 of 27 Old 01-10-2013, 01:53 PM
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Originally Posted by tazandjan View Post
Here are all the rules you need. Took about 30 seconds online.

http://tax.illinois.gov/taxforms/Sal...x/ST-556-1.pdf

http://tax.illinois.gov/publications...trrc/st-58.pdf

The answer is yes, they must collect 6.00% tax at the dealership because Florida does not offer Illinois buyers an out of state purchase tax exemption.

The caveat....did not consider checking FL laws.....so yep, Taz and those links pretty much line it out for what HAS to be done....per where you live and where you are purchasing from.
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post #15 of 27 Old 01-10-2013, 02:19 PM
 
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This is what you do--ok/ no taxes out of state

Hi guys
i am in ft' lauderdale florida
i bought many cars from ---dealers & private parties from other states

all you need from that state is the title for the car----no need to pay tax
when you get the title---then you register the ferrari here in --florida
with the bill of sale--so they will know what you pay for the ferrari
then you pay florida state tax ,get a tag & registration (with insurance) you can also get your FL. TITLE immediately

don't pay any taxes in chicago----no recourse----no refund
alL you need is the---- title of the FERRARI----TO REGISTER IT HERE

mark (954) 822-4930
florida
don't let them tell you any different !

Last edited by KROME; 01-10-2013 at 02:31 PM.
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post #16 of 27 Old 01-10-2013, 02:24 PM
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Mark- Nope, not in Illinois. By law, they must collect 6% tax from Florida buyers. Anecdotal stories have nothing to do with it. Very plainly spelled out in Illinois regulations.

Not good to give bad advice, even if I do screw up and do it myself on occasion.

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post #17 of 27 Old 01-10-2013, 02:39 PM
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Mark- Nope, not in Illinois. By law, they must collect 6% tax from Florida buyers. Anecdotal stories have nothing to do with it. Very plainly spelled out in Illinois regulations.

Not good to give bad advice, even if I do screw up and do it myself on occasion.
I bought 2 cars from Chicago, unfortunately, but never paid them any sales tax, however, the cars are registered in Oregon, which may make a difference.

If you decide to go through with the deal with BGC, make sure they have the title in hand. They have a nasty habit of playing cash flow games, and it could take up to 45 days to get the title from them. Make them fax you a copy of it, and include it with the transport company. They play another game and say that they sell so many cars / month, but only have 1 lady that handles all the titles that it takes a while. Total B.S. You have been warned.

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post #18 of 27 Old 01-10-2013, 02:57 PM
 
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Then---i won't buy in--illinois

i bought ferrari from

california
new york
md
virginia
texas--------
--i never paid out of state taxes--------ask to see the car title
sometimes it is an open --title--- with that owners signature--ok
i got that state vehicle title immediately once i paid-----trust no one-----

i will not buy any vehicle without a clean & clear title in hand
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post #19 of 27 Old 01-10-2013, 02:59 PM
 
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mdhunter, it seems the FerrariLife gods are coming out of the woodwork, and not hypothetically, with a truckload of "caveat emptor."

I know it double sucks when you think you've found "the one" since you've been searching for a year, but everything is pointing to not being hasty in this case. And in this case, it just might NOT be "the one".

But it will turn up!
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post #20 of 27 Old 01-10-2013, 03:19 PM
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You guys need to read the very first line of the pdf document.

If you sell items that must be titled or registered by an agency of Illinois state government — vehicles, watercraft, aircraft, trailers, and mobile homes — at retail in Illinois, you must report these sales on Form ST-556, Sales Tax Transaction Return.

In other words - if you are NOT registering or titling your vehicle in Ill you do not have to pay Ill tax.

Part 2

Nonresidents may not claim the “out-of-state” buyer exemption (Section 5, Box A of Form ST-556, Sales Tax Transaction Return) on purchases of motor vehicles or trailers that will be titled in a state that does not give Illinois residents an “out-of-state” buyer exemption on their purchases in that state of motor vehicles or trailers that will be titled in Illinois (i.e., there is no reciprocal exemption).

Unless the buyer is looking for exempt status and wants to title in Ill but living in another state the one above does not apply either.

BGC is full of beans!

All these bs laws came about due to Illinois does not have a personal property tax.

People in many states leave their private jest etc. in states that do not collect personal property - so the state makes the dealer accountable for collection if and only if the property is registered in Ill at the time of sale.

There are law firms and car brokers that will register an LLC in Alaska which means no taxes at all - but who wants to drive around with Alaska plates!

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Last edited by champagne612; 01-10-2013 at 03:34 PM.
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