Out of State Sales Tax Question - Honda Shadow Forums : Shadow Motorcycle Forum

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Old 01-16-2010, 04:36 AM   #1 (permalink)
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Default Out of State Sales Tax Question

Since the MVD is closed for the next three days I can't ask them, so I thought maybe someone here could chime in.

If I live in Connecticut and buy a USED motorcycle from a DEALER in Ohio, will I pay sales tax to the dealer at the time of sale? If so, will I get credit for that Ohio tax when I go to register the bike here?

I've been all over google and the State of Ohio Tax website...more confusing than anything. Couldn't find a straight answer to the question. I'm not even sure the dealer knows the full story, as he has a small place that sells mainly to Ohio residents.

If anyone here can take off their helmet for a minute and put on their Forensic Accountant's hat, I'd be obliged.
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Old 01-16-2010, 05:55 AM   #2 (permalink)
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I register vehicles every day...

If you buy from Ohio... and take delivery in Ohio... you will pay Ohio sales tax...
When you register your bike in Ct... you submit the bill of sale showing the paid sales tax in Ohio and you will pay no sales tax in Connecticut.
This is because the tax rate in Ohio is 7.5% and your Ct. sales tax rate is 6%...
If it was the other way around... you would pay the difference in tax in Ct. at registration.

Now if you could get them to deliver the bike to you in your home state of CT... you would pay no sales tax in Ohio... and 6% sales tax in CT...
There is a form they would keep in your deal folder showing an "Out of State" delivery and you could avoid the additional 1.5% Ohio tax.

I commonly do this for transactions of vehicles for New Hampshire residents that come down to Mass. to buy a vehicle. New Hampshire has no Sales Tax and Mass is 6.25%. I have a salesman deliver the vehicle to them at the Town Clerks office in the NH town they live in and I add the "Out of State" form to their folder so Mass. can not come after them for sales tax in the event of an Audit by the dept. of Revenue in Taxachusetts...... I mean Massachusetts... (oops)

Hope this helped you with your answer...

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Old 01-16-2010, 06:54 AM   #3 (permalink)
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What 750 ace said is pretty much spot on.

I bought a vehicle here in Florida but registered it in TN. I had to pay the sales tax at the time of sale to the dealer. They gave me a temp tag and I took my sales tax receipt to TN and I didn't have to pay taxes there. The receipt was my proof I already paid tax on the car.

Since the tax I paid in Florida was more then what I would have paid in TN the dealer refunded that extra amount back to me.

You may want to mention this to the dealer if your going to pay more for taking delivery in Ohio.

Chris
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Old 01-16-2010, 08:46 AM   #4 (permalink)
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Sales Tax, what's that
always irked me when buying out of state and forget the price on the item was not the final price
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Old 01-16-2010, 11:53 AM   #5 (permalink)
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I live in PA. Back in 2000, I bought a brand new Honda Civic Si from a dealer in Ohio. They did not charge me the Ohio sales tax and sold me a temporary transit tag to drive the car home. When I got back to PA and registered it, I paid the sales tax. At least that's how I remember it.
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Old 01-16-2010, 12:15 PM   #6 (permalink)
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Quote:
Originally Posted by Rick-G
Sales Tax, what's that
always irked me when buying out of state and forget the price on the item was not the final price
Don't worry they get you in other ways. Our motto used to be in Indiana "Indiana The Land Of Taxes". Still is, though my property tax just got up to $700.0 per year for 1+ country acre after 20 yrs. living here.
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Old 01-16-2010, 01:37 PM   #7 (permalink)
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Thanks!

That's what I was hoping to hear since I don't plan on registering in CT until April.
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Old 01-16-2010, 03:26 PM   #8 (permalink)
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Quote:
Originally Posted by h13man
Quote:
Originally Posted by Rick-G
Sales Tax, what's that
always irked me when buying out of state and forget the price on the item was not the final price
Don't worry they get you in other ways. Our motto used to be in Indiana "Indiana The Land Of Taxes". Still is, though my property tax just got up to $700.0 per year for 1+ country acre after 20 yrs. living here.
Your right there, personnel income tax plus property tax. I don't know how many times over the years this state has tried to pass a sales tax. But they never said they would eliminate one of the other forms of tax so Oregonians have always voted Up Yours
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Old 01-17-2010, 02:07 PM   #9 (permalink)
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