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Posted: 5/27/2022 1:50:14 PM EDT
When purchasing a car (or motorcycle - I'm assuming the law is the same) and the dealer collects the sales tax and registers the vehicle for you, are you required to pay sales tax based on your county of residence or location of the dealer?

I recently bought a motorcycle in a different county (with a half percent higher sales tax rate) and was charged the sales tax at the point of sale rather than my county.  Is the dealer committing fraud by pocketing the difference?

Link Posted: 5/27/2022 2:11:18 PM EDT
[#1]
Not sure if this helps but I purchased a new car in 2020 in New Jersey and had to pay the higher NYC tax where I lived.  I also purchased a new car in 2017 in Pinellas county Florida and had to pay the higher tax where the car was registered in Hillsborough county.
Link Posted: 5/27/2022 2:46:25 PM EDT
[#2]
Discussion ForumsJump to Quoted PostQuote History
Originally Posted By CMPEBRFAN:
Not sure if this helps but I purchased a new car in 2020 in New Jersey and had to pay the higher NYC tax where I lived.  I also purchased a new car in 2017 in Pinellas county Florida and had to pay the higher tax where the car was registered in Hillsborough county.
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Yeah I'm not sure if that helps either
Link Posted: 5/27/2022 2:55:39 PM EDT
[#3]
It should be based upon your county of residence.
Link Posted: 5/27/2022 3:04:26 PM EDT
[Last Edit: Crash1433] [#4]
Based on your county where the bike is going to be registered. However, if your county is the same as where he is, they could have just put the wrong county on the paperwork.

<===17 year car sales

ETA: We have a place here where two towns are in both counties. So we have to ask the customer where their residence actually is in order to know where the tax should be paid to.
Link Posted: 5/27/2022 4:02:21 PM EDT
[Last Edit: widerstehe] [#5]
Discussion ForumsJump to Quoted PostQuote History
Originally Posted By Crash1433:
Based on your county where the bike is going to be registered. However, if your county is the same as where he is, they could have just put the wrong county on the paperwork.

<===17 year car sales

ETA: We have a place here where two towns are in both counties. So we have to ask the customer where their residence actually is in order to know where the tax should be paid to.
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Not the same county.  I'm upstate and they were in Long Island.  I think the discrepancy is about a half percent.  Works out to about $50.  Not a big deal but if the money should be in my pocket rather than theirs, I'd rather that.

So again, I ask, is what they are doing clearly illegal?  Or is it a grey area?

Link Posted: 6/1/2022 2:20:58 PM EDT
[#6]
Discussion ForumsJump to Quoted PostQuote History
Originally Posted By widerstehe:



Not the same county.  I'm upstate and they were in Long Island.  I think the discrepancy is about a half percent.  Works out to about $50.  Not a big deal but if the money should be in my pocket rather than theirs, I'd rather that.

So again, I ask, is what they are doing clearly illegal?  Or is it a grey area?

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I'd say it's a grey area. While the reporting of the tax is incorrect I don't think $50 is going to get anyone in trouble. If you want I would call them and ask about it. I'm sure they would rather catch it now and correct it then have it found in an audit later on.
Link Posted: 6/1/2022 4:15:38 PM EDT
[#7]
Discussion ForumsJump to Quoted PostQuote History
Originally Posted By Crash1433:


I'd say it's a grey area. While the reporting of the tax is incorrect I don't think $50 is going to get anyone in trouble. If you want I would call them and ask about it. I'm sure they would rather catch it now and correct it then have it found in an audit later on.
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It wasn't a mistake.  The salesman told me "we collect sales tax at the point of sale, not your county of residence."  So either it's illegal for them to do that or it isn't.   $50 of my money but likely tens of thousands of dollars out of hundreds of customers.

I'm leaning toward illegal but no one has caught them yet.  Maybe after my registration / title comes I'll inquire with the AG office.  I don't want any friction if something is amiss and I need their help on some paperwork.
Link Posted: 6/2/2022 1:05:19 PM EDT
[#8]
Discussion ForumsJump to Quoted PostQuote History
Originally Posted By widerstehe:


It wasn't a mistake.  The salesman told me "we collect sales tax at the point of sale, not your county of residence."  So either it's illegal for them to do that or it isn't.   $50 of my money but likely tens of thousands of dollars out of hundreds of customers.

I'm leaning toward illegal but no one has caught them yet.  Maybe after my registration / title comes I'll inquire with the AG office.  I don't want any friction if something is amiss and I need their help on some paperwork.
View Quote


Well if their sales tax rate is less than the customers they would actually be collecting less money than they should from the customer. So be careful with that statement. I can't believe it hasn't been caught in an audit yet. Like I said we are careful about it here bc we have two or three towns cloes to here that are in two counties at the same time. So not only the zip code but the person address makes a difference.
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