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ga80486's avatar
ga80486
Explorer
Aug 26, 2015

Taxes/Registration

I have some questions about buying a new class A in Michigan. To make it easy, assume a purchase price of $100,000.

Sales tax in Mi is 6% so $6000.00 in sales taxes. Is it any less in TX, FL or IN? Would it be smart to buy out of state to save taxes?

And what about registration in MI? Can anyone tell me what their yearly registration fee runs? I think a 5th wheel trailer is one time $300 (over 10,000 lb), and I heard a motorhome can run $900 per year. Is that right?

$6000 difference in 10 years makes a big difference in total cost of ownership.

TIA
Gordy

29 Replies

  • Thanks for the feedback. Lots of things to consider and I don't want to miss anything.
  • ga80486 wrote:
    ....
    Sales tax in Mi is 6% so $6000.00 in sales taxes. Is it any less in TX, FL or IN? Would it be smart to buy out of state to save taxes?
    ...


    Unless you change your state of residency/domicile, it doesn't matter where you buy, you will pay your home state tax when you register it in Mi. But to answer, Tx is 6.25%, Fl is 6%, In is 7% ; and SD which many fulltime RV'ers use as their domicile is 4%.
  • If it is titled in Michigan you pay the 6% regardless of what state you purchase it in.
  • if you are a resident of michigan you pay the rates.

    if you have any questions about the fees just get with the SOS.

    one thing that I do like about michigan is the one time permanent fee on a trailer plate.
  • State laws do vary. Frequently, when buying out of state, you don't have to pay the sales/use tax in the state you purchase in and get a temporary transit permit. You do then pay the sales/use taxes in your home state when registering the vehicle. Buying out of state does not save on taxes here, quite obviously.

    Some (I think a small minority) of states do collect sales tax on vehicle sales to out of state individuals. Some (perhaps many or most) states will offset the tax you owe at registration in that case. In some cases, you unfortunately end up being taxed twice.

    Massachusetts (and, to my knowledge, only Massachusetts) does not issue transit permits for out of state buyers, and does not recognize transit permits from other states as valid for Massachusetts residents. They do, seemingly grudgingly, recognize transit permits for non-residents who happen to be traveling through on their way back to their home state. For this reason, I did not consider buying any RVs in Massachusetts when I was shopping, even though it's not an unreasonable distance from Vermont.
  • Register the rig in your domicile State. Pay your taxes as you're supposed to..:S

    Trying to cheat the tax man will bring you nothing but headaches and heartaches down the road. If you're a full timer you may pick and choose your domicile state. If you're still working, that doesn't apply. We own property all over the U.S. but chose S.D. as our domicile state as we live full time in our coach. We have SD DLs, all our mail is sent there, we have bank accts there and we're registered to vote there.

    If you are registering the coach out of state to avoid paying valid taxes, that's tax fraud, a felony in all 50 States....Dennis
  • Need to look into SD. Low tax rate, 4%, about 600 a year to register, and can do online. I have no brick and mortar residence in the US. So I have a SD mailbox and drivers license.

    I purchased it in TN and was given a 30 day tag. Paid no taxes there.

    All 100% legal. I am told where problems oocur is when your plate is one state and license another. Insurance is low there also. Hope this helps.
  • My trailer I bought in Ma. Paid the MA tax, and that was credited towards my RI tax.
  • I have no idea about Mi, but here in Nevada it doesn't matter where you buy it. If you buy it in state the taxes are rolled into the deal in one form or another. If you buy it out of state and bring it in then you pay the taxes when you register it the first time. If you register it in a non tax state and keep it here and are caught it is $$$$$$$ money in fines. I have friends that have done this but I just pay it.

    Chris