Question:

Do you have to pay state sales tax if you buy a car for export?

by  |  earlier

0 LIKES UnLike

If I buy a car here in the US, but do not title it and instead ship it overseas, would I be able to avoid paying state sales tax?

I know the practice in the US is that you pay sales tax based on where you register the car, not where you buy the car. I bought a car in NY, but at the time was living in NJ. I paid the lower NJ sales tax.

I want to buy a car here in the US and ship it to Colombia. I have already checked with the customs people in Colombia and it is 100% permissable to ship a brand new car there from overseas (shipping used cars is prohibited).

So, I'm just wondering, if I don't ever register the vehicle in the US, and just have the car delivered directly to the point of shipment in Miami, can I avoid paying state sales tax?

 Tags:

   Report

1 ANSWERS


  1. "I'm researching the same question. So far the answer seems to depend on the state in which you reside. I'm in Massachusetts, and the only *legal* way to avoid paying sales tax is to take delivery of the vehicle outside of the state.

    When exporting overseas, though, it's not as simple as if you were living over the border in Connecticut and the salesman drove the car down to drop it off at your place.

    One possibility I'm looking into is whether or not a new vehicle direct from the manufacturer, without a title (having only a Manufacturer's Statement of Origin) would be subject to tax. I need to make some more calls before I know this for certain, but the "payment of tax" link below seems to indicate tax is still due even if you're not titling or registering the car in Massachusetts.

    As for your idea regarding exporting a car bought from a private seller without paying sales tax, my interpretation of Massachusetts law is that this would be a crime.

    (Please note that I'm not a lawyer before the bar and none of the above should be construed as legal advice)"

    1 year ago

    Source(s):

    U.S. Customs and Border Protection "Exporting a Motor Vehicle"

    http://www.cbp.gov/xp/cgov/export/export...

    Out of State Purchase Exemption

    http://www.mass.gov/?pageID=dorterminal&...

    Payment of the Tax

    http://www.mass.gov/?pageID=dorterminal&...

Question Stats

Latest activity: earlier.
This question has 1 answers.

BECOME A GUIDE

Share your knowledge and help people by answering questions.
Unanswered Questions