polarisrider1
New member
Correct.
Out of state Tax Collection
- Thread starter bumble-ski
- Start date
Trade-in Allowance. The Michigan trade-in allowance discontinued February 1, 1985. However, persons purchasing vehicles in Michigan for titling and registering in another state are allowed to use that state’s trade-in allowance when computing tax due in Michigan.
http://www.michigan.gov/documents/485_72279_7.pdf
http://www.michigan.gov/documents/485_72279_7.pdf
peppermill
New member
The price of the vehicle we bought was $14,500. It was a used vehicle. We were given $2,500 trade in for my vehicle. That brought the price of the vehicle we bought down to $12,000. When I went to registar it they told me the tax I had to pay was on $14,500. I had to pay tax on $14,500. I was not happy and told her she was ripping me off and she said that in MI you have to pay tax on the sticker price. That was about 5 years ago.
No, the price you paid and your method of payment are two different things. The price of the vehicle is $14,500. That's what you paid for it...$14,500. Taxable
Your method of payment was a trade for $2500, and cash for $12,000. Whether you are paying with goats, chickens, drugs, gold, cash, or whiskey, the price of the car is $14,500
$12,000 + $2500=$14,500 which is the price of the car.
In accounting terms, the dealer booked a sale for $14,500, and received payment of $12,000 cash, and an asset valued at $2500 as payment for your purchase.
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First, do what Polarisrider1 suggest - go to the IL DMV and ask them first to make sure you don't pay twice.
I live in OH and bought a sled in MI in 2009. Paid MI sales tax because MI and OH did not have a reciprocal agreement in place.
When I went to the OH DMV to register the sled I had to show the bill of sale showing the sale price and tax paid. Since the OH tax was = or less than the MI tax I did not have to pay OH tax. If the MI tax had been lower than OH I would have had to pay OH the difference.
As someone noted above, if you purchase a sled from another state and it is shipped to you so that you RECEIVE it in your state then they don't typically collect the tax in the sale state. (You will pay your home state sales tax when you register it.) If you pick it up at the dealer (receive it there) then you will likely pay tax there.
Good luck!
I live in OH and bought a sled in MI in 2009. Paid MI sales tax because MI and OH did not have a reciprocal agreement in place.
When I went to the OH DMV to register the sled I had to show the bill of sale showing the sale price and tax paid. Since the OH tax was = or less than the MI tax I did not have to pay OH tax. If the MI tax had been lower than OH I would have had to pay OH the difference.
As someone noted above, if you purchase a sled from another state and it is shipped to you so that you RECEIVE it in your state then they don't typically collect the tax in the sale state. (You will pay your home state sales tax when you register it.) If you pick it up at the dealer (receive it there) then you will likely pay tax there.
Good luck!
L
lenny
Guest
I've never paid twice or have been asked to
M
Mattarsc
Guest
Well said. I agree with that. That is what happens here. In the car business when I sold cars for WI residents there was a golden egg for those people that they only paid tax on the difference. Michigan we are lucky enough to pay on the tax twice for a trade. It carries over here too for sleds etc. Someone above mentioned dealers not knowing etc, I agree with that. Over zealous salesmen over selling prmises tends to cause alot of headache. It's best to contact DMV SOS and find out what it is for your state. I haven't heard of someone having to pay twice, but i have heard of people having to make up any tax DUE from not paying enough. I've also had a service customer who hadn't paid tax, and insurance company sent/verified a vin with state and customer got audited for that sled and other purchases. Again nightmare!
Yes, in Illinois you pay the difference between the sales tax you paid in the state of the sale and the Illinois sales tax. I remember when I bought a trailer in Wisconsin and had this problem. We went back and forth for a few months and finally a tax guy helped me out and the amount I ended up owing? $5.