Out of state bike buyers
#1
Out of state bike buyers
I'm lost on where to purchase my bike i have 2 dealers with good deals but i like the out of state dealer better for the gift card they'll offer. only thing is im in delaware and their in PA.
What i cant figure out is am i paying tax on the bike in pa and then when get it back to Del. will i have to pay tax again and the document fee at the DMV too?
Cause if thats the case the gift card went out the winodw cause im sure Doc fee and tax together would run almost another 1K. it would be easier to just buy it in my own state since Del. makes it easy they just add it all into your final cost of the bike. but that otehr dealer is giving me a killer deal but the deal will be out the winodw and gift card if i gotta pay tax twice and document fee
Anyone have any experience on this?
I tried calling my DMV but that old f*&kin hag on the phone cant answer s$*t for me
What i cant figure out is am i paying tax on the bike in pa and then when get it back to Del. will i have to pay tax again and the document fee at the DMV too?
Cause if thats the case the gift card went out the winodw cause im sure Doc fee and tax together would run almost another 1K. it would be easier to just buy it in my own state since Del. makes it easy they just add it all into your final cost of the bike. but that otehr dealer is giving me a killer deal but the deal will be out the winodw and gift card if i gotta pay tax twice and document fee
Anyone have any experience on this?
I tried calling my DMV but that old f*&kin hag on the phone cant answer s$*t for me
#2
Call PA dealer and ask them.
They sell to out of state buyers all the time.
Doubt there is a way to get around DE tax. Reg should stay the same: fixed amount.
DE will want their cut.
But if it's a 'killer' deal, you will pay lower DE taxes on the actual total amount.
EX: Bike bought in DE is $10k pay that DE tax. Bike bought in PA $8K, pay DE tax on that amount.
You just don't pay PA tax - I *think* that's how it goes.
They sell to out of state buyers all the time.
Doubt there is a way to get around DE tax. Reg should stay the same: fixed amount.
DE will want their cut.
But if it's a 'killer' deal, you will pay lower DE taxes on the actual total amount.
EX: Bike bought in DE is $10k pay that DE tax. Bike bought in PA $8K, pay DE tax on that amount.
You just don't pay PA tax - I *think* that's how it goes.
Last edited by softone; 02-05-2011 at 08:25 AM.
#5
........... Yup !
#6
From DE DMV Site:
"Delaware law allows out-of-state vehicle owners a credit on a sales tax, transfer tax or some similar levy paid to another state on the purchase of a vehicle within 90 days prior to registering the vehicle in Delaware. The vehicle must have been titled/registered in the other state within 90 days prior to registering the vehicle in Delaware. The 90-day rule is strictly enforced.
Delaware residents who purchase a vehicle from an out-of-state dealer will not receive credit for any taxes paid. The majority of states exempt out-of-state buyers from their taxes but some states collect taxes on all vehicle sales. Residents need to be aware that they may be taxed twice on vehicles purchased from some states.
"Delaware law allows out-of-state vehicle owners a credit on a sales tax, transfer tax or some similar levy paid to another state on the purchase of a vehicle within 90 days prior to registering the vehicle in Delaware. The vehicle must have been titled/registered in the other state within 90 days prior to registering the vehicle in Delaware. The 90-day rule is strictly enforced.
Delaware residents who purchase a vehicle from an out-of-state dealer will not receive credit for any taxes paid. The majority of states exempt out-of-state buyers from their taxes but some states collect taxes on all vehicle sales. Residents need to be aware that they may be taxed twice on vehicles purchased from some states.
#7
Before someone else posts... let me be the first to tell you that this subject has been discussed thoroughly before on this forum... "use the search engine." Now wouldn't it have been easier for me knowing that this subject has been on here before to just have skipped over the topic... NO? Well it would have! The end... sorry to high jack the thread. Now to answer the question... normally bordering states have a reciprocity agreement when it comes to collecting state sales taxes on major purchases. The state of Pa may collect De taxes and send the collected amount along with the paperwork to your local DMV office... either way you only pay the taxes due in your locality.
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#9
Before someone else posts... let me be the first to tell you that this subject has been discussed thoroughly before on this forum... "use the search engine." Now wouldn't it have been easier for me knowing that this subject has been on here before to just have skipped over the topic... NO? Well it would have! The end... sorry to high jack the thread. Now to answer the question... normally bordering states have a reciprocity agreement when it comes to collecting state sales taxes on major purchases. The state of Pa may collect De taxes and send the collected amount along with the paperwork to your local DMV office... either way you only pay the taxes due in your locality.
Do you have a problem with helping another rider?
Do you somehow think that if this question is somehow replacing a more interesting thread?
#10
Before someone else posts... let me be the first to tell you that this subject has been discussed thoroughly before on this forum... "use the search engine." Now wouldn't it have been easier for me knowing that this subject has been on here before to just have skipped over the topic... NO? Well it would have! The end... sorry to high jack the thread. Now to answer the question... normally bordering states have a reciprocity agreement when it comes to collecting state sales taxes on major purchases. The state of Pa may collect De taxes and send the collected amount along with the paperwork to your local DMV office... either way you only pay the taxes due in your locality.
Back to the OP's question.
While your question has already been answered, there is something else worth noting.
If you are financing your bike and buy within your home state, you can blend that sales tax in with your loan, rather than pay out of pocket when registering your bike. Good size chunk of change involved.