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Posted: 1/20/2021 1:18:40 PM EST
[Last Edit: 1/20/2021 1:23:41 PM EST by grywlf52]
HTF, need your wisdom.

Situation:  The wife moved out to Phoenix for a job and traded in her Jeep for a new KIA Sportage.  No sales tax paid in AZ as it is their thing when you trade in a vehicle. The vehicle is still tagged in AZ through August.

She then moved back here as my job out there fell through.  She was out there for 16 months.  She bought the KIA back in August.

She went to the DMV yesterday to get her license and register her KIA here. (scheduled the appointment in October....)

She was able to get her license.  The registration and tags, not so much.

The DMV clerk told her that since she didn't pay taxes on the KIA, she would have to pay the full taxes on the original cost, not actual cost (trade-in money from JEEP) here in VA.  WTF????  It wasn't purchased here.....

Now the same clerk tells her that if she waits until August, when the current AZ plates expire, she won't have to pay the sales tax.  Again WTF?????

Is the clerk wrong or is there something that was not properly explained?

TIA
Link Posted: 1/20/2021 1:35:09 PM EST
[Last Edit: 1/20/2021 1:36:24 PM EST by dalle0001]
I think she didn't quite explained it right.

They value your new Kia at the full price it is worth at the time. So if it is brand, spanking new then you have to pay that tax rate. Then as time goes on, you pay less tax.

So yes, you do have to pay taxes on the value of the Kia (regardless of the price you paid for it).

Welcome to the Socialist People's Republic of Virginia. More importantly, at the DMV, register to vote and vote this year since it's time to switch up the General Assembly.
Link Posted: 1/20/2021 2:11:55 PM EST
The clerk is helping you out. If you try to register a car here that was bought out of state within the past year, they will charge either the difference between the sales tax you paid and what the sales tax would have been in Virginia, or the whole Virginia Sales tax in your case since you didn't pay any in AZ.

Link Posted: 1/20/2021 2:16:03 PM EST
Discussion ForumsJump to Quoted PostQuote History
Originally Posted By dalle0001:
I think she didn't quite explained it right.

They value your new Kia at the full price it is worth at the time. So if it is brand, spanking new then you have to pay that tax rate. Then as time goes on, you pay less tax.

So yes, you do have to pay taxes on the value of the Kia (regardless of the price you paid for it).

Welcome to the Socialist People's Republic of Virginia. More importantly, at the DMV, register to vote and vote this year since it's time to switch up the General Assembly.
View Quote



Thank you. I knew the registration fee was based off the value but what she was saying was she would have to pay the sales tax as well.  Like around $2,000 or so plus the registration.

We've been here for a number of years.  This was just a pre-emptive move to AZ, my job was lined up but feel through.

We always vote.
Link Posted: 1/20/2021 2:17:53 PM EST
Discussion ForumsJump to Quoted PostQuote History
Originally Posted By 1AEGW:
The clerk is helping you out. If you try to register a car here that was bought out of state within the past year, they will charge either the difference between the sales tax you paid and what the sales tax would have been in Virginia, or the whole Virginia Sales tax in your case since you didn't pay any in AZ.

View Quote



So the key is the 12 month thing.  After the 12 months, should be way way less?  Like my above reply, she said the tax on top of the registration fee which is based off the value.
Link Posted: 1/20/2021 2:21:07 PM EST
After 12 months it should just be the registration fee.
Link Posted: 1/20/2021 2:33:44 PM EST
Discussion ForumsJump to Quoted PostQuote History
Originally Posted By 1AEGW:
After 12 months it should just be the registration fee.
View Quote


Ah, got it.  Let's hope.
Thanks
Link Posted: 1/20/2021 6:01:54 PM EST
Of course when the popo pulls her over for driving on AZ plates, she will get ticketed for not getting VA registration in 30 days or whatever, and her new VA/DL will be proof.

Would have been better off keeping AZ/DL and say she is in VA temporarily.
Link Posted: 1/22/2021 1:40:12 PM EST
[Last Edit: 1/31/2021 3:20:47 PM EST by brickeyee]
Discussion ForumsJump to Quoted PostQuote History
Originally Posted By 1AEGW:
The clerk is helping you out. If you try to register a car here that was bought out of state within the past year, they will charge either the difference between the sales tax you paid and what the sales tax would have been in Virginia, or the whole Virginia Sales tax in your case since you didn't pay any in AZ.

View Quote


People try and transfer claiming the price was $100.

State saw through that quickly.
The Governor wants his cut.
Link Posted: 1/23/2021 8:23:45 AM EST
On the other hand.  

If you buy a car out of state and pay more tax in that state then the current VA tax rate.....They give you a refund.

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