Sales Tax Question

J

jegreenwood

New member
Long story short:

I bought my 4Runner at Toyota of Dallas. I live in Arkansas, so I planned on registering it here and paying sales tax (Arkansas has sales tax). I had all that rolled into my owed amount, so I could just pay it off with the car. Well, I wasn't filled in on the entire process from the get go. A month and a half go by, and my check/tags still hadn't showed up. I called, and they said that I was supposed to go get my property reassessed, so I could have all my stuff sent to whatever office it is that approves this crap in Texas and issues the Arkansas tags.

So, my tags are about to expire on the dealer tags. They sent me a new one to cover me for the next month, while all this goes down. I was out of town for work for 2 weeks. Come home, and get ready to go to the revenue office to have property reassessed. Remembered that I need a copy of the lien title, so I can get assessed. Call Toyota, and they tell me that they had no other choice but to register the 4Runner in Texas...

So, now I will have Texas tags in Arkansas.

My question is this. If I paid $2000 for licensing/sales tax, when I bought the runner, with intent to register it in my home state.. but it ended up being registered in Texas, am I entitled to get that sales tax money back? Or at least have it credited towards my owed amount?
 
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you are out of luck. you should have done your research prior to purchasing out of state vehicles.
 
Texas mvt is only 6.25%. You should be able to apply that amount to Arkansas. It shouldn't be registered in Texas as you are not a resident. Speak to the fianace guy. Have them send you the money for the tt&l as agreed.

My bro n law bought his truck here and they rolled everything in for him and he lives in Arkansas.
 
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jegreenwood said:
Call Toyota, and they tell me that they had no other choice but to register the 4Runner in Texas...

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That does not sound right at all. I don't know how you are going to register something in a state where you don't live. I have bought many cars from out of state although never tried to bring anything into Arkansas. However, I always just brought in the bill of sale and/or title and pay the tax and registration fees. I would either call back Toyota and have them check with a manager or just try and do it with just the sales contract and without the copy of the lien.
 
I can only speak for California, but I know that if you paid sales tax for the vehicle in another state, you can credit that amount towards the sales tax amount you would owe in California, if you were to register the vehicle here. That is what my research found when I bought a Maryland registered 4Runner and registered it in California.
 
Maybe I should have said that more clearly.

Bought 4Runner

30 days passed and didn't receive my tt&l info from the dealer, like they said they'd send.

Get a new dealer tag to last me 30 days. 18 days before expiration (today) I went to get my property reassessed to send off to Toyota so they could send me my tt&l.

Revenue office said I need title, so I reached out to Toyota of Dallas, and they said that they had already registered it in Texas, since I hadn't gotten back with them with my reassessment.

I have an Arkansas address, so like yall said.. doesn't make sense nor should it be possible.

I think the idea of applying the sales tax paid in Texas towards Arkansas sales tax is my best bet. They are sending me Texas tags and registration in the mail, lol. I don't think I would be able to rock Texas tags without a Texas address.. so it seems pointless.

But, I lived in Dallas for 2.5 years and never switched my Arkansas tags over to Texas, nor did I get a Texas license, lol. I guess I could do the same thing with this.
 
mrblah said:
you are out of luck. you should have done your research prior to purchasing out of state vehicles.
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No, the dealer who received thousands in profit from OP for the services they (should have) performed - should have known how to do this the proper and legal way. I've been through this process many times, and never has a dealer been unfamiliar with the proper steps.
 
mrblah said:
you are out of luck. you should have done your research prior to purchasing out of state vehicles.
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No blood shed. I am actually getting $400 back. CVT in TX is 6.25%. CVT in AR is 6.5%. I will take the Texas registration, show that to AR DMV, and tell them that the sales tax has been paid.. now I just need to switch my tags from TX to AR, since I will already have TX tags.
 
epjfsa said:
No, the dealer who received thousands in profit from OP for the services they (should have) performed - should have known how to do this the proper and legal way. I've been through this process many times, and never has a dealer been unfamiliar with the proper steps.
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:pop2:
 
Sounds screwy. I purchased my car out of state, but the taxes are paid when its registered in your home state.

Also

Taxation is theft.
 
That whole process sounds a little wonky. I bought out of state in UT, and was charged NO sales tax on the purchase there. They forwarded the sale information to the AZ MVD, and I paid AZ tax when I registered here.
 
Finance Director here...

Tax should be collected based on where you reside (edit: that could vary state to state, but I’ve seen vehicles get titled in about 20-30 states, all of which we collected sales tax based on their residence). The dealer may be able to unwind the titling (I’ve had to do that before). If they play hardball, the word “attorney” may get them to soften up. I would also contact an Arkansas BMV and ask about transferring the title. You may be out a small title fee, but that should be an option.
 
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Badmeat said:
Finance Director here...

Tax should be collected based on where you reside (edit: that could vary state to state, but I’ve seen vehicles get titled in about 20-30 states, all of which we collected sales tax based on their residence). The dealer may be able to unwind the titling (I’ve had to do that before). If they play hardball, the word “attorney” may get them to soften up. I would also contact an Arkansas BMV and ask about transferring the title. You may be out a small title fee, but that should be an option.
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Seems like the easiest thing to do, would be a transfer of title, so I can register it in Arkansas.

Could I not act as if I had just moved to Arkansas, and need to get Arkansas tags now? Pay the title transfer/plates fees and be done. I am being reimbursed by Toyota of Dallas for $400ish which was the difference in Arkansas title/license/registration fee from Texas' tt&l fees. The $400 would cover the transfer and the license/registration fee here in Arkansas.
 
jegreenwood said:
Seems like the easiest thing to do, would be a transfer of title, so I can register it in Arkansas.

Could I not act as if I had just moved to Arkansas, and need to get Arkansas tags now? Pay the title transfer/plates fees and be done. I am being reimbursed by Toyota of Dallas for $400ish which was the difference in Arkansas title/license/registration fee from Texas' tt&l fees. The $400 would cover the transfer and the license/registration fee here in Arkansas.
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It's really going to depend on who you luck into getting at the BMV. In my years of experience, it seems that you get a different answer depending on who you talk to. One person may be willing to bend the rules and help out, while others go by the book.

It sounds like you may not be out anything, other than your time to get the transfer processed. An out-of-state vehicle inspection will likely be required by Arkansas for the transfer.
 
RileyPk said:
You should speak with an accountant about this. When it comes to taxes or anything that involves money and government, it's better to speak with a professional. If you don't have someone that you've worked with before, you should find a person that you can trust with this and I can guarantee you that there will not be any problems at all.
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Well hopefully they figured it out in the last 40 months.
 
Residency matters. Contact the Texas DMV and ask to speak to someone about fraudulent sales taxes. You will get some ones attention.
 
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