Hi,I did the following:

Question: When you buy a car, is the sales tax based on where you live?
My family was planning on buying a car, and thought that we would pay that city’s sales tax. However, the car salesman told us that we would need to pay the sales tax of the city we lived in. I want to know if this is true, because it makes no sense. Example: If I buy a shirt from that city do I need pay my own city’s sales tax?


The following is the answer:

Answer by Rob R
The salesman is right. I sell Nissan’s in Northern Indiana, near Michigan. Our sales tax is 7% and Michigan is 6%. You pay sales tax where you are going to title the car.

Why are you comparing a shirt to a car? That doesn’t make sense.

He/she is right.

From your friendly Nissan Salesperson :-)

Answer by mccoyblues
A shirt is a completely different issue. If you buy a shirt over the internet you pay zero taxes. You don’t need to register a shirt with the state.

A car must be registered in the county in which you maintain permanent residence. You pay taxes based on where the car is registered. In other words, it doesn’t matter where you buy the car you pay local sales tax based on where you live.

Answer by DER ALTE FIRZ
You CAN pay the tax on the car where you buy it. BUT,,,,,,you’ll have to pay it again when you register it in the place you live.
Then, to get your taxes paid in the other area, you’ll have a pot full of paperwork to file.

Answer by XTX
— taxes on the car are based on the county rates for road use…… county to county the rates may differ and cars are registered and licensed by the state and fees are divided by the state and the county.. IT IS TRUE…. and a phone call to the DMV in your state will support this info and also answer the correct amount of fee that is to be collected for your city/county =========== If you want to buy a car and find the taxes higher than expected then GET TOUGH … argue the price and get a lower figure …. you should be saving and paying less than the window price …. like all the fees and taxes are included in the window price and that is a good deal in the “”today car market”"”

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