Out of state purchase...part 2

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lewisb13

New member
Ok so heres what happened. I made out like a BANDIT. Michigan charged me 6% sales tax on the bike (~$6500) AND the doc fee (~$190). So I ended up paying like $400 there. Then I brought the bill of sale to the DMV (or whatever you want to call it) in Illinois and their tax is 7.25% of the price of the bike MINUS any trades. SO, I had a $2500 trade that I traded in, so when I got to Illinois I only had to pay the 7.25 on 6500-2500 = 4000. That came out to be $290. So if you do the math there, Im actually getting a REFUND check for like $110. I highly suggest buying out of state if you have a trade and you live in Illinois.

/end thread
 
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nic

New member
Are you actually going to get a refund check? I've never heard of that. I know if you paid $400 in taxes in MI, and owed IL $500, they'd make you pay the $100 difference they were due. BUT- I've never heard of the reverse, where you paid $500 in MI, and only owed $400 in IL, and IL gave you a refund. Did they tell you that you would get a refund check? Who is the refund coming from?

Also- I'm surprised you didn't get that trade-in credit from MI. That's one of the big reasons we ended up trading in our old boat for our new one, rather than trying to sell it outright. We could have made an extra $3-4K with a private sale, but the sales tax on a 50K dollar boat, rather than sales tax on 10K (40K trade in) washed out most of that earnings. It was also much simpler. So anyway- I'm surprised MI didn't charge you 6% of 6500-2500 (4000) to begin with. Seems odd.
 
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special_ed

New member
nic, in Michigan you pay tax on full purchase price, then they take off your trade in, Jenny wants all the money she can get her hands on.
No wonder everyone wants out of this state.
I purchased a new truck in Ohio, and they give me the bill of sale and the papers for the title, then I went to the Sec. of State office in Mich. and payed the taxes and got the plate. Paid no taxes in Ohio.
 
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nic

New member
Ah- see, every state is different. In IL, you get to take the value of your trade off of the purchase price, and you pay tax on the remaining amount. But the refund thing- I'm dying to hear the details on that one.

I have purchased my last 2 snowmobiles from Michigan (Headwaters- great people).... Anyway- I have paid no tax in MI. I just paid the 6.5% due when I registered it in IL. I was a little annoyed b/c I bought a leftover machine and got a $900 rebate. But you pay tax on the full amount (not including rebates)- so I paid tax on $900 that I never paid. Gotta love it. I pay taxes on my taxes....
 
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fredster

New member
I bought a dirt bike in OH and titled it in MI. Paid no sales tax in OH and but paid when I registered in MI. You should not have had to pay sales tax in MI if you're have an out of state address.

In MI, sales tax is figured on the gross purchase price before trade-in's, rebates, etc. Just how it works. Surprised that IL lets you pay on net price only - that doesn't make sense to me at all.
 
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harvest1121

Well-known member
Why would you not pay on the net you already paid tax on the full amount. They will be getting the full tax on who purchases your trade in Illinois. Tax on a rebate is like you putting cash down. If the Manufacturers did it as cash to the dealer you would not have to pay on it. So actually if you paid cash for a vehicle it would be no tax thats why a rebate is taxed its cash down.

Same when you buy a car the rebate is a down payment just like if someone gave it to you. The worse is to lease a car in Illinois you are taxed on the whole thing where in most states you only pay on the payments.
 
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rocketman356

New member
Bought a new 2010 SD Back Country X in WI. and had it deliver to IL. by a car carrier company. Paid no sales tax and had the dealer register it in WI.
 
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ezra

Well-known member
I have bought new non current sled out of MN and registered in MN as a sled that has not been registered in MN and never payed tax in ether state.thinking I will be doing it again just as soon as I get over the shock of sending in my check to my uncle Sam on Apr 15th talk about getting ****ed on taxes
 
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snobuilder

Well-known member
ezra said:
I have bought new non current sled out of MN and registered in MN as a sled that has not been registered in MN and never payed tax in ether state.thinking I will be doing it again just as soon as I get over the shock of sending in my check to my uncle Sam on Apr 15th talk about getting ****ed on taxes
Click to expand...

WHAT?,...do you have your states down right?
 
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micelist

New member
The way we do it when we buy our sleds in MI is to opt out of paying the MI tax at the dealer.. You then bring the paperwork to where you reg the sled and only pay the tax in your state of registration.. In Wi you also get credit for your trade in. We paid 5.5% of the net price after the trade. We have done this with several dealers in the UP and is the slickest way to go.
 
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snobuilder

Well-known member
ezra said:
I thinks so what I meant buy out of MN is out of state in WI
Click to expand...

As of last June when I bought a quad in MN I either had to have them ship into WI or if picked up there, pay all there sales taxes,...doesn't sound like Wisco has followed MN's lead,.....which is unusual for our gov. not to latch onto bad ideas from neighboring states....we generally try to out tax each other.....
 
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landoman

New member
I have seen someone buy an new atv in Michigan - telling them that they were going to register in Wisconsin. Michigan dealer did not charge sales tax. They got the title - sat on it for 6 months - then sold the ATV to their father in law for say $1 which is legal in WI.

And just like that they had no sales tax on a $7000 unit.

I have not tried it myself but i have seen it work.
 
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micelist

New member
That doesnt work because the dealer just gives you the cert of origin and doesnt get a title or reg w/o the tax being paid.. Hard to sell as used if there is no prev. reg
 
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rocketman356

New member
In my case as long as the carrier that delivered the sled to IL has the right carrier #'s it is viewed as the same as buying a snow blower online from a out of state company and having it deliver to you.Bought the sled on ebay from a dealer in WI.
 
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