No Sales Tax for a New car in Delaware state ?

Question

I just moved to Delaware state. is there no sale tax for a new car in delaware? What happen if I move in a year to other states like from delaware to the state charging sale tax for my new car? do I get charged sales tax for my car because delaware did not charge sale tax on my car? please let me know...

Answer 1

If you move to a state that has sales tax, or, like California, a use tax, when you register the vehicle you will be charged that tax rate based on the value at the time of registration. Lets say the car you buy in Delaware is $25,000.00. And you move to  a state with sales tax of. say, 6%. When you register the vehicle in the new state you will be charged the "fair market vale", we'll say $15,000.00 after depreciation, times the tax rate of $6%, or $900.00 plus registration fees and plate fees and any other fee they can think of. Of course, this will vary from state to state. I used to live in Montana, a state without sales tax. I'd buy a car in Washington state, a state with sales tax. I'd get a special exemption allowing me to not pay Washington sales tax as long as I registered the car in Montana within 10 days. More or less a reverse of the same thing.