Out of state Tax Collection

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bumble-ski

New member
I'm looking at purchasing a new snow machine in Ohio, the dealer won't go through with the transaction without collecting tax. I live in Illinois and cannot wrap my hands around this. Is this the norm?

Thanks,

Bumble-Ski
 
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rakins800

Member
I bought a new sled from a Wisconsin dealer a few years ago. He said we could do it either way,with or without tax. I chose the later. However,I tried the same thing 3 years later from a Michigan dealer and was told they HAD to charge the sales tax to out of state buyers.......it was the state law at the time so I was told.
 
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nitroman

New member
Yep it's the norm. Bought my 08 from Leaders marine in MI no tax, called last year to buy my 11 and they said they have to charge tax now.
 
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bumble-ski

New member
Alright, now I'm confused... this has to be a state by state or dealer by dealer thing... I talked to a dealer in Michigan and they said no tax collection
 
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polarisrider1

New member
Not to add confusion, but I bought a new sled in Wisconsin ywo years ago and WI. dealer said no tax since I was registering it in Michigan. And Michigan said, "Show me the money" and grabbed the tax out of my hands and then said, "We could care less what state it came from, or if you paid tax on it there, you must pay sales tax on it here". That's in Michigan. I suspect it is a state to state thing and some dealers are not sure how it works for sure.
 
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rakins800

Member
P1, I think they all want tax money if you are gonna ride it in your home state. Michigan knows they have the upper hand on that one........
 
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HardwaterHoosier

Member
I bought a sled in MI in 2009, and paid Indiana sales tax.
I also heard that if the sales bill shows the sled is being shipped, they do not have to charge sales tax.
 
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Hoosier

Well-known member
bumble-ski said:
I'm looking at purchasing a new snow machine in Ohio, the dealer won't go through with the transaction without collecting tax. I live in Illinois and cannot wrap my hands around this. Is this the norm?

Thanks,

Bumble-Ski
Click to expand...

I live in Indiana, and I am in the process of buying a new vehicle in Ohio (minivan). I haven't completed the transaction, so I don't for sure that this is true, but the dealer told me will it collect the sales tax and remit it to Indiana where it will be registered.
 
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nitroman

New member
I do believe if you pick up a sled in Indiana that you are purchasing from MI you dont have to pay taxes though. Call them and ask there are all kinds of strange sales tax laws.
 
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snoduke

New member
I live in Ill and have purchaced sleds in Iowa and wis and always paid tax in state where bought and then paid the differance when I reg in ILL.
 
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yamaholic

Member
I live in MI and bought a car from a dealer in OH this summer had to pay him (OH) sales tax I would think it would be the same with a sled. 6% either way for me.
 
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whitedust

Well-known member
Should be a tax waiver form in OH on sale but must pay tax to register in IL or WI unless using on private land & do not register. You got to pay state tax somewhere unless shipped to another state but cost for that too. I would want to pay tax in the state I register the sled. Dealer afraid he will get burned for the tax on the sale.
 
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peppermill

New member
A few years ago we bought a vehicle in WI (we live in MI) and they asked if we wanted to pay the tax in WI which at that time was 5 or 5 1/2% and then pay the difference in MI when we registered it. MI tax is 6% We opted to pay when we registered it. We didn't know that we would have to pay tax on the trade-in value of our old vehicle. When we registered it we had to pay tax on the purchase price of the new vehicle and the trade-in value of the old vehicle. Talk about being shocked when we went to registar it.
 
yamadooed

yamadooed

Active member
When you go to register a new sled in IL,WI or MI you hafta prove sales tax was paid or pay the difference of the state yer register'n in...
If yer buy'n used from a private party WI and MI you hafta pay sales tax or difference on sale price...
IL doesn't tax on used private party sales which is the way it should be on an item that the sales tax has already been paid on when it was new...
 
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nhra1000

Member
peppermill said:
A few years ago we bought a vehicle in WI (we live in MI) and they asked if we wanted to pay the tax in WI which at that time was 5 or 5 1/2% and then pay the difference in MI when we registered it. MI tax is 6% We opted to pay when we registered it. We didn't know that we would have to pay tax on the trade-in value of our old vehicle. When we registered it we had to pay tax on the purchase price of the new vehicle and the trade-in value of the old vehicle. Talk about being shocked when we went to registar it.
Click to expand...

I think you were ripped off....When you buy a vehicle and trade one in...you only pay tax on the difference.

As far as the sled taxes...if the states are "reciprocating" then they collect the tax in the state where you buy. I know Wis/Mich are reciprocating but dont know about others.
 
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bumble-ski

New member
Thanks guys - from what I gather on here i'm paying illinois 8.25% vehicle purchase prices... that's $1000! could be a decent ditch banger for that... On my gently used snow machines I've bought in the past, just had to mail in a form (without tax) and they sent stickers / registration a few weeks later. Was hoping I could do the same here -but just doesn't seem to be the case.
 
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caged_beagle

Member
nhra1000 said:
I think you were ripped off....When you buy a vehicle and trade one in...you only pay tax on the difference.

As far as the sled taxes...if the states are "reciprocating" then they collect the tax in the state where you buy. I know Wis/Mich are reciprocating but dont know about others.
Click to expand...

NOT IN MICHIGAN. Peppermill is correct, in Michigan you pay tax on the full price of the new vehicle not the difference between said vehicle and trade in. I think he just worded it abit wrong and it came across as though he paid tax on the new vehicle price and also the trade in value. I think he just meant he paid tax on the FULL sale amount of the new vehicle, which as I said before is the way it is in the Woverine State.

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