NY resident buying out of state, anyone done it?

[scott78945]

I went to my dealer tonight to get my oil changed and was just BSing with a salesman. I was possibly looking to turn in my 2011 SR5 for a 2014 Trail Premium w/ KDSS. After the salesman got done laughing at me, jokingly of course, he said that he just found one for someone but took him a month. He stated that he can look but it could take 3-5 months to find one as I wanted it in black. I know I am being specific but if I want what I want and if I am paying for it then I don't want something else.

So, with that I was possibly thinking of going to another state as he said that there were none in NY with what I was looking for. Has anyone done this? What are the ramifications of buying out of NY state with state tax? Will I need to pay the state I purchase it in along with NY state tax? Otherwise, I could have him search and once he finds one he'll call me. I am in no rush at all but with the incentives and 30th anniversary discount it felt like to time to strike. In the end, I may just keep what I got but I'm always looking...

 

[Ryan1975]

I was living in Watertown (military, not NY resident but that doesn't matter) when I bought mine off of Ebay in Johnstown, PA. Really it wasn't hard at all. Just find a dealership (the dealership in Johnstown really had a great Internet guy that didn't care about only making $500/sale...so look them up since you're in Central NY) and find the truck you want. Pay for the truck, get temp tags and bring it back into NY and pay the sales tax. It wasn't hard at all.

 

[scott78945]

So you didn't have to pay sales tax in PA and NY? That is what I was worried about...I know how NY can be. Do you remember the name of the dealership in PA so I can look them up? Thanks for the help!

 

[Ryan1975]

So you didn't have to pay sales tax in PA and NY? That is what I was worried about...I know how NY can be. Do you remember the name of the dealership in PA so I can look them up? Thanks for the help!

I don't know what the rules are around here. I'll send it to you in a PM. Very easy...bought mine while in Afghanistan.

 

[adam2562]

i'm in maryland.. i bought out of state in illinois.. i only paid the 6% sales tax for md.. but what they did was add 6% of the sales price to the financing.. and then they cut me a check for that exact amount.. so when i got back to maryland, i had to get it state inspected and then the mva wanted their 6% sales tax which i had cause the dealership cut me a check for that amount and yet i still get to pay it as part of my loan. that's all u gotta do

Enjoy your new 4runner when you get it!

 

[Maz]

I can't specifically comment on NY law, however I have purchased vehicles in other states multiple times. In some cases the "purchasing" state will have specific fees (i.e. temporary licensing, 30 day transport fee, etc.) but leave it up to the buyer to pay sales tax in the "home" state.

In other cases the "purchasing " state collects sales tax for the "home" state and forwards them on your behalf. In NO cases did I pay taxes in both states, in fact I'm pretty sure federal law would preclude that. Otherwise interstate commerce would be a nightmare.

Think about it...you buy dinner to go at a famous rib joint in Kansas City Missouri and pay taxes for the purchase. However you're a resident of Kansas City, Kansas and transport the meal across the state line to eat it. Do you owe taxes to the Sunflower state of Kansas too?

Or closer to home for our OP scott, he goes to Atlantic City for the weekend and buys a suit on sale at the Hugo Boss store. However he never wears the suit in Jersey, in fact he can't because his tailor's back in New York. So Jersey charges him a sales tax per the purchase price, and he pays taxes in New York because it's still a new unused suit?

No, and my somewhat silly but still on point examples makes it clear why. You're paying a sales tax for something available to be used on site. For example the meal or suit that could have been used right away. Or you pay a temporary fee good only for transport to the licensing state, then the normal purchase taxes at the final home destination.

It's either / or, but never both. Otherwise interstate commerce would be depressed by a reluctance to buy due to double taxation. Even simple things like taking a vacation to Hawaii, or to ski in Colorado could be an accounting nightmare.

Commerce would at least be discouraged, and more likely disrupted. As a result everybody suffers because commerce creates jobs, so therefore you don't want any unnecessary impediments for consumers to buy. Double taxation would be just about the biggest impediment possible.

There is a corollary situation rising to prominence now people should be aware of. We used to never pay sales tax on Internet purchases. However state after state is now requiring online vendors to collect sales taxes based on delivery zip code.

I didn't pay sales tax to Arizona for the Trail steps I purchased from Camelback Toyota in Phoenix. They did collect sales tax however for California, just as if I bought it in Los Angeles. If you order tires from Tire Rack or Tire Crawler your zip code for delivery at checkout will automatically add sales tax for state that have already enacted those laws.

If your state doesn't do this yet feel lucky, but trust me on this one, someday (probably soon).... they will!

 

[perkdog258]

I am in NY. I know when I had an out of state vehicle before I just left it registered in the state I purchased it in. Once the tags ran out I just went ahead and re registered it in NY. You will have to pay the new license amount of like ~$200 not the usual $100 bi-annual fee. This saves you in paying the taxes again.

You are supposed to claim all that crap on your tax form at the end of the year and then pay the difference, but honestly how many people you think do that. I am sure it is the same amount that claim all the taxes they did not pay on internet purchases.

 

[cbielat]

I'm from MA and bought my truck in NY at Riverhead Toyota. I had temporary dealer tags until I registered it in MA a few days later.

 

[mdrudy]

Koons Toyota has multiple dealerships in the greater DC area with crazy low prices. They have 11 trail models between their dealerships and looks like they have a black prem with KDSS for 37.5K.

New 2013 & 2014 Toyota Vienna | Prius Hybrid, Camry, Sienna, Tacoma, Tundra | Koons Tysons Toyota

 

[scott78945]

Koons Toyota has multiple dealerships in the greater DC area with crazy low prices. They have 11 trail models between their dealerships and looks like they have a black prem with KDSS for 37.5K.

New 2013 & 2014 Toyota Vienna | Prius Hybrid, Camry, Sienna, Tacoma, Tundra | Koons Tysons Toyota

Thanks for the info! I was looking for a Trail Premium and none state that. I had to look at the options to find them and it notes the heated seats, moonroof, etc. Great deals to be had! Maryland isn't that far to travel either...very interesting. Guess the salesman didn't quite search too far out...

 

[mdrudy]

No problem Scott- You can also use New Cars, Used Cars, Car Reviews | Cars.com and filter your search to the Trail Premium in Black but then sort your search based on Listed Newest First. If you scroll down towards the bottom you can tell that those vehicles have been around longer on the lot and, in my experience, the dealers are much more likely to deal on them. Good luck and let us know what you get.

 

[cbreze]

I'm in Oregon, long way from NY, but when I bought mine I was chatting with the sales guy about out of state sales as Oregon has no sales tax. He said a significant portion of their sales come from Washington state. Made sense to me. Saving around $3000 in sales tax on a fully equipped runner or something else equally pricey. Makes me think California has a tax the crap outta any non local vehicle bought elsewhere policy since they get all the sales from Washington and none from CA.

 

[eddiebx]

I can't specifically comment on NY law, however I have purchased vehicles in other states multiple times. In some cases the "purchasing" state will have specific fees (i.e. temporary licensing, 30 day transport fee, etc.) but leave it up to the buyer to pay sales tax in the "home" state.

In other cases the "purchasing " state collects sales tax for the "home" state and forwards them on your behalf. In NO cases did I pay taxes in both states, in fact I'm pretty sure federal law would preclude that. Otherwise interstate commerce would be a nightmare.

Think about it...you buy dinner to go at a famous rib joint in Kansas City Missouri and pay taxes for the purchase. However you're a resident of Kansas City, Kansas and transport the meal across the state line to eat it. Do you owe taxes to the Sunflower state of Kansas too?

Or closer to home for our OP scott, he goes to Atlantic City for the weekend and buys a suit on sale at the Hugo Boss store. However he never wears the suit in Jersey, in fact he can't because his tailor's back in New York. So Jersey charges him a sales tax per the purchase price, and he pays taxes in New York because it's still a new unused suit?

No, and my somewhat silly but still on point examples makes it clear why. You're paying a sales tax for something available to be used on site. For example the meal or suit that could have been used right away. Or you pay a temporary fee good only for transport to the licensing state, then the normal purchase taxes at the final home destination.

It's either / or, but never both. Otherwise interstate commerce would be depressed by a reluctance to buy due to double taxation. Even simple things like taking a vacation to Hawaii, or to ski in Colorado could be an accounting nightmare.

Commerce would at least be discouraged, and more likely disrupted. As a result everybody suffers because commerce creates jobs, so therefore you don't want any unnecessary impediments for consumers to buy. Double taxation would be just about the biggest impediment possible.

There is a corollary situation rising to prominence now people should be aware of. We used to never pay sales tax on Internet purchases. However state after state is now requiring online vendors to collect sales taxes based on delivery zip code.

I didn't pay sales tax to Arizona for the Trail steps I purchased from Camelback Toyota in Phoenix. They did collect sales tax however for California, just as if I bought it in Los Angeles. If you order tires from Tire Rack or Tire Crawler your zip code for delivery at checkout will automatically add sales tax for state that have already enacted those laws.

If your state doesn't do this yet feel lucky, but trust me on this one, someday (probably soon).... they will!

This is exactly how a lot of states work and a very good explanation! However, go ask your home state's DMV and the purchasing state's dealerships to inquire about their local use tax laws, just to be absolutely positive on your particular situation.

I can't remember the specific state but, one has an "export" tax for out of state buyers, so in this case you're screwed if your home state does not honor the out of state tax you already paid to the dealer. A lot of state DMVs will waive the amount of tax you paid out of state as long as you can show proof. For example, you paid 5% out of state and you get home and your DMV requires you 10%; they will only make you make the remaining 5%.

A lot of states don't have any tax laws for out of state buyers, so you can just buy it tax free, so to speak, and pony up the tax $$ once you register.

The part where it get's tricky is when you calculate the total tax if you have a trade-in. Some states waive the tax on the amount you trade-in, and you only pay the difference; meanwhile others don't care and you need to pay the tax on the full value of the new vehicle.

Asking for advice here from a bunch of strangers and different states will not get you accurate advice unless they live exactly in your home state and purchased the vehicle in the exact same out of state place as you plan to. You're going to have to do some homework and look up the local laws

 

[CatskillsRunner]

Having bought two cars out of state in 2013, I know that NY only makes you pay the after trade cost, which is nice.

I always register my trailers in ME even tho I'm a NYS resident (which is a really sweet deal), but the rules are different for vehicles and you need to register it here and pay taxes here. The dealership where I bought the 4runner from was used to dealing with NYers so they dealt with all the taxes for me and saved me a trip to the dmv, but I bought my truck way out in western PA and they made a big to-do about rolling the NYS taxes into the loan, so i just paid cash for the taxes. The tax rate will depend on the county in which you live.

You will only pay in NY. Hope that helps! It's not fun negotiating or researching anything related to NYS!

 

[Eagle]

In NO cases did I pay taxes in both states, in fact I'm pretty sure federal law would preclude that. Otherwise interstate commerce would be a nightmare.
...
There is a corollary situation rising to prominence now people should be aware of. We used to never pay sales tax on Internet purchases. However state after state is now requiring online vendors to collect sales taxes based on delivery zip code.

Not really. Many states impose a Use Tax to complement sales tax. Typically, Use Tax applies when you buy a good in a different state and then bring it back to your state for use. If no sales tax was collected at purchase, use tax will be due later. You usually get to reduce use tax by any amount of sales tax paid (i.e., if you pay 5% sales tax in state A and then bring it to state B where use tax is 8%, you would only owe the 3% difference to as state B use tax). It works like sales tax except the burden is on the consumer and not the retailer.

Those "tax free" online purchases are (in manystates) not actually tax free. No sales tax is collected, but you are required to pay the use tax, which is the same rate as the sales tax. Compliance is a different matter any many people get away with not paying it... but not paying it is different than not owing it.


Back to the topic -- vehicles are very state-dependent. Some states will sell you the vehicle and collect no tax, so you'd simply pay the sales tax when you register it in NY. Other states will collect sales tax and then NY may give you a credit against any NY sales tax owed (and you would only pay the difference if NY has a higher rate).

 

[JerseyMike]

I'm from Jersey and bought mine in Utah. Only had to pay taxes in Jersey when I registered. All I had to do was show proof of residency and fill out an extra form for the dealer. All in all it took an extra five minutes. No worries.

 

[TonyJ124]

For what it's worth, I live in Mass and bought my 08 Xterra in Saratoga, NY. Only paid sales tax in MA, on the difference between the trade in allowance and the cost of the xterra.

I know there are a few trails out this way (Boston region), I know Boch toyota in Norwood, MA has/had a Black '14 trail in stock, not sure if it was KDSS or not.

 

[scott78945]

For what it's worth, I live in Mass and bought my 08 Xterra in Saratoga, NY. Only paid sales tax in MA, on the difference between the trade in allowance and the cost of the xterra.

I know there are a few trails out this way (Boston region), I know Boch toyota in Norwood, MA has/had a Black '14 trail in stock, not sure if it was KDSS or not.

I did see that one on Cars.com. The website doesn't say if it has KDSS or not either. It doesn't tell you its Premium but it does note it has a moonroof so it has to be. I also found one at Jones Toyota and Jerry's Toyota. Anyone have any experience with these? Some of these prices seem to be crazy low so I definitely have my concerns....

 

[mdrudy]

I did see that one on Cars.com. The website doesn't say if it has KDSS or not either. It doesn't tell you its Premium but it does note it has a moonroof so it has to be. I also found one at Jones Toyota and Jerry's Toyota. Anyone have any experience with these? Some of these prices seem to be crazy low so I definitely have my concerns....

I don't have any experience with Jones or Jerry's but I do with Koon's Toyota. I believe they are the largest truck dealer on the entire east coast....at least that's what they claim. Between their 5 or 6 dealers they have close to 70 4Runners. I thought the prices were too good to be true too, but i guarantee you they are still making money. They'll even haggle a little bit on price. Now one thing to note, many of the dealerships are including the $500 cash back in their lowest price so they say. So if you are going to finance you'll have to add that $500 back on....or negotiate it the best you can. Good luck.

 

[TonyJ124]

I did see that one on Cars.com. The website doesn't say if it has KDSS or not either. It doesn't tell you its Premium but it does note it has a moonroof so it has to be. I also found one at Jones Toyota and Jerry's Toyota. Anyone have any experience with these? Some of these prices seem to be crazy low so I definitely have my concerns....

Boch has serviced mine since I bought it- though I didn't buy it there- if that makes sense.

They're good people, if I were looking for a new toyota, I wouldn't hesitate to shop Boch. The owners are good people and do a fair bit for the community (wife teaches there), and their pricing & service is reasonable. I'd offer to go look over that 4runner, but I'm on my way out of town for the weekend, then I'm moving next week. Just a little booked up.