buying autos outside of MD
- Thread starter sleuth
- Start date
sleuth
Livin' Like Thanksgivin'
Originally posted by cattitude
That was too easy Pete.
Actually... I've already checked there.
Although it tells what forms are required for purchasing an out of state vehicle, it didn't say anything, or at least I didn't find anything, on what to do about the sales tax. I was also hoping that I might get additional tips from someone who has done this before.
kwillia
n/a
I thought sales tax was sales tax and that you would pay the expected precentage of what you paid for the vehicle when you go to tag it. That's why they want written proof as to what you paid for it from the seller so that you can't fudge the price to lower your taxes...Originally posted by sleuth
Actually... I've already checked there.
Although it tells what forms are required for purchasing an out of state vehicle, it didn't say anything, or at least I didn't find anything, on what to do about the sales tax. I was also hoping that I might get additional tips from someone who has done this before.
sleuth
Livin' Like Thanksgivin'
Originally posted by kwillia
I thought sales tax was sales tax and that you would pay the expected precentage of what you paid for the vehicle when you go to tag it. That's why they want written proof as to what you paid for it from the seller so that you can't fudge the price to lower your taxes...
I've heard something about having to pay the sales tax in the other state, and then having to pay the difference (if any) to Maryland when you bring it back in. :shrug:
e.g. If MD's sales tax is 6% and VA's sales tax is 5%, you have to pay 5% in VA and then 1% in MD.
At least that was my coworker's theory.
I've also heard that you can somehow pay zero sales tax in the other state and pay the regular sales tax in MD.
I've also heard people complain that Maryland taxes you on top of what the other states tax you. I don't know if there's any truth to that.
From the MVA website. http://mva.state.md.us/VehicleServ/REG/titlereg.htm
If the vehicle has been recently purchased, the 5% excise tax is based on the greater of the total purchase price verified by a notarized MVA Bill of Sale (form VR-181), signed by both the buyer(s) and the seller(s) in which the actual price paid for the vehicle is stated or $640.00. In other cases, the total purchase price or the valuation shown in a national publication of used car values adopted for use by the Administration will be used to establish the tax. There is an addition or subtraction for high or low mileage. On vehicles seven years old and older, the tax is based on the greater of the purchase price or the minimum book value of $640.00.
Note: As a new resident, to comply with Maryland law and take advantage of a lower excise tax, you must title and register your vehicle within 60 days of moving to Maryland.
For vehicles less than 7 years old:
Vehicle(s) titled in a state with a tax rate equal to or higher than Maryland's 5% tax rate will cost $100.
If the vehicle is registered in a state that imposes no tax, the tax will be assessed at 5% of the value of the vehicle.
Vehicles from a state with a lower tax rate than Maryland's 5% will be taxed at the rate of the difference between the two states. Example: MD 5%, VA 3%, the difference is a 2% tax rate. Minimum tax - $100. When the value of the vehicle is less than $2,000, the 5% rate will apply.
If the vehicle has been recently purchased, the 5% excise tax is based on the greater of the total purchase price verified by a notarized MVA Bill of Sale (form VR-181), signed by both the buyer(s) and the seller(s) in which the actual price paid for the vehicle is stated or $640.00. In other cases, the total purchase price or the valuation shown in a national publication of used car values adopted for use by the Administration will be used to establish the tax. There is an addition or subtraction for high or low mileage. On vehicles seven years old and older, the tax is based on the greater of the purchase price or the minimum book value of $640.00.
Note: As a new resident, to comply with Maryland law and take advantage of a lower excise tax, you must title and register your vehicle within 60 days of moving to Maryland.
For vehicles less than 7 years old:
Vehicle(s) titled in a state with a tax rate equal to or higher than Maryland's 5% tax rate will cost $100.
If the vehicle is registered in a state that imposes no tax, the tax will be assessed at 5% of the value of the vehicle.
Vehicles from a state with a lower tax rate than Maryland's 5% will be taxed at the rate of the difference between the two states. Example: MD 5%, VA 3%, the difference is a 2% tax rate. Minimum tax - $100. When the value of the vehicle is less than $2,000, the 5% rate will apply.
willie
Well-Known Member
In 2002 I bought a new car from a dealer in Monroe Ga. They took care of the title and Maryland 5% tax and only charged me $25 to do it. The previous year Cowles Ford in Va. did the same but for a little over $100 fee. Last year I got a used truck (93) from a private seller in New Jersey. Towed it home to SOMD, got it inspected and took the paper work to the tag and title store in Prince Fred and got the new tags on the spot. I paid wholesale price for the truck and that is what the 5% MD. tax was based on. I'm not so sure I could have received that price without the help of the tag/title service. I don't remember what their fee was but I will use them again. The biggest problem of buying out of state from a private party is the hassle of Md. inspection. Most Md. sellers that I have dealt with already have it done.
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Oz
You're all F'in Mad...
Did Willie buy a new Corvette from Maxie Price down there in Georgia??
Sleuth - I just did this in April with a NEW vehicle. Bought a car (basically online,) from a Chevy dealer in Atlantic City. The dealer up there collected and remitted the Maryland Sales tax when they applied for my tags. They gave me a paper New Jersey tag to bring the car home. (Also used it to drive around for a couple of weeks with no trouble from any LEO.) NEW vehicles do NOT have to be inspected in Maryland. The only thing I would recommend is that you do your own tag work. Don't pay the out of state dealer to do that for you.
There isn't some elaborate scheme where you pay some here, and some there. Be careful if you're buying used though. Other states (VA) don't have as strict laws as Maryland on car dealers. Don't forget to check Carfax too! I found a beautiful barely-used car in Virginia, only to learn from Carfax that it had a flood title from Alabama!
Sleuth - I just did this in April with a NEW vehicle. Bought a car (basically online,) from a Chevy dealer in Atlantic City. The dealer up there collected and remitted the Maryland Sales tax when they applied for my tags. They gave me a paper New Jersey tag to bring the car home. (Also used it to drive around for a couple of weeks with no trouble from any LEO.) NEW vehicles do NOT have to be inspected in Maryland. The only thing I would recommend is that you do your own tag work. Don't pay the out of state dealer to do that for you.
There isn't some elaborate scheme where you pay some here, and some there. Be careful if you're buying used though. Other states (VA) don't have as strict laws as Maryland on car dealers. Don't forget to check Carfax too! I found a beautiful barely-used car in Virginia, only to learn from Carfax that it had a flood title from Alabama!
B
Bruzilla
Guest
I bought my Crown Victoria from a guy in New Hampshire. His price was about $4,000 less than the price of the same car in the DC area. I flew up to Manchester, he met me at the airport and took me to the car. We exchanged bucks and paperwork, and I was on my way. I took a tag off my old Crown Vic, and carried it with me on the plane, and then put it on the new car to get it back to Maryland. It isn't legal, but it worked. I had to get one of those bills of sale notarized, and I paid the MD tax when I registered the car.
I bought another car, a Mustang, from a dealer in New York City a little while later. I drove up with proof of insurance, and he issued me a temporary NY tag for the drive back. We paid the MD tax when we registered.
While working at Mike Shad Ford here in Jacksonville, everyone was charged the local sales tax. It's then up to the state where you register the car to either charge you the full amount, or deduct the other state's taxes. One thing I like about Florida is if you have had your car for more than two years, there is no tax due when you initially register.
I bought another car, a Mustang, from a dealer in New York City a little while later. I drove up with proof of insurance, and he issued me a temporary NY tag for the drive back. We paid the MD tax when we registered.
While working at Mike Shad Ford here in Jacksonville, everyone was charged the local sales tax. It's then up to the state where you register the car to either charge you the full amount, or deduct the other state's taxes. One thing I like about Florida is if you have had your car for more than two years, there is no tax due when you initially register.