RV Loan Tax Questions

[drillagent]

We're getting ready to purchase our first FW trailer. We're already pre approved for the loan, but I have a couple questions before we go to the dealer. Based on my research in our home state, we will have to pay sales tax IOT register the trailer. If I pay sales tax in the state of purchase, then I have to pay the difference if my home state taxes are more. So my questions.

Will I have to pay sales tax where I purchase the FW at the time of purchase, or do they expect the tax to be paid at the time of registration?

If I don't have to pay tax at the time of purchase, is it possible to have my home state taxes included in the loan? How do I ensure this happens? Will the dealership give me a check or will the loan company do this?

Basically, I don't have the 3+ grand on hand to write a check to the registration office, and I'm hoping to have it included in the loan. Or am I just p***ing up a rope? Thanks in advance.

[bhh]

Do you really want to depend upon anecdotal, and possibly incorrect, comments from anonymous people? What someone's brother's sister-in-law did would have no bearing upon
a) What is the state where you purchase
b) What is the state where you reside and will be titled / tagged

Do the right thing with both taxing agencies and BMV in both places. You could even the title sent to you and do the license plates or temp tags before you leave home (assuming you don't have a physical inspection requirement in your home state).

Amen, Oaklevel

Oaklevel wrote:
Ask both states for how their out of state sales tax purchases are handled there will be differences. and as far of insurance your lender will require it but the state may not. Trailers in our state liability is covered buy the tow vehicle & do not have to have insurance to be tagged.

[NYCgrrl]

NewTTcamper wrote:
My aunt lives on Oregon. They have no sales tax. She told me that if I use her address to register and keep the trailer on her property I won't have to pay sales. She says it's done all the time. Seems like the system would catch up you! Anyone heard of this scenario?

New York Times re wrote:
For motor coaches, many people used to travel to Oregon, which also has no sales tax and low registration fees. Oregon has since made it more difficult for out-of-state buyers and even helps other states track down people who go there to avoid taxes.

Here is the entire article:

Forget the Call of the Wild:In Montana, the RV Set is Drawn by the Words "No Taxes"

[DrewE]

mileshuff wrote:
NV and AZ have tax agreements in place. If buying between two states that do not have such agreements in place you'll pay the tax rate of the state you're purchasing in and then pay the difference in your home state when registering. If the purchase state is at a higher rate you won't be refunded the difference.

I'm not sure that's always true. Many states technically charge the tax at the time of registration, rather than the time of sale. If you get a transit permit (or whatever they call it), you usually don't have to pay tax, just the relatively nominal fee for the transit permit. You do, of course, have to pay tax in your home state when you register the unit.

At least, that's the standard practice for motor vehicles as I understand it. I think trailers are generally treated in the same manner. Vehicle taxes are usually not sales taxes, strictly speaking, but rather use taxes, collected in the state where the vehicle is registered.

(This is exactly what I did when I bought my motorhome. I paid the gentleman I bought it from, got the title signed over, and took that paperwork to the NH DMV office. The NH DMV took my $10 or $20 and gave me a transit permit, a short term temporary registration. I then drove my motorhome back to Vermont, went to the VT DMV, and paid tax and registration fees to get proper plates. I would also have gotten a freshly minted title at that time had it been a little newer. Vermont and some of the other New England states do not issue titles for vehicles over fifteen years old.)

[NewTTcamper]

My aunt lives on Oregon. They have no sales tax. She told me that if I use her address to register and keep the trailer on her property I won't have to pay sales. She says it's done all the time. Seems like the system would catch up you! Anyone heard of this scenario?

[mileshuff]

I live in AZ. I bought a trailer last year in NV who did not charge my sales tax. They gave me a temporary transport permit so I could to to AZ. I then registered the trailer at AZ DMV and paid the full AZ tax and registration fees.

NV and AZ have tax agreements in place. If buying between two states that do not have such agreements in place you'll pay the tax rate of the state you're purchasing in and then pay the difference in your home state when registering. If the purchase state is at a higher rate you won't be refunded the difference.

[OH48Lt]

It all depends on which 2 states the transactions are going to be made. I've bought trailers and motorcycles in Michigan, and Michigan law requires payment of Michigan sales tax at time of sale. If the Ohio tax is higher, the difference is paid to Ohio when you transfer to an Ohio title. We bought our current TT in Indiana, no Indiana sales tax paid, but full Ohio sales tax was paid when transferring to an Ohio title.

So the definitive answer is: It Depends.

I liked the idea of repayment of excess tax by a home state that never got a dime. Yeah, that'll happen.

[Nutinelse2do]

drillagent wrote:
We're getting ready to purchase our first FW trailer. We're already pre approved for the loan, but I have a couple questions before we go to the dealer. Based on my research in our home state, we will have to pay sales tax IOT register the trailer. If I pay sales tax in the state of purchase, then I have to pay the difference if my home state taxes are more. So my questions.

Will I have to pay sales tax where I purchase the FW at the time of purchase, or do they expect the tax to be paid at the time of registration?

If I don't have to pay tax at the time of purchase, is it possible to have my home state taxes included in the loan? How do I ensure this happens? Will the dealership give me a check or will the loan company do this?

Basically, I don't have the 3+ grand on hand to write a check to the registration office, and I'm hoping to have it included in the loan. Or am I just p***ing up a rope? Thanks in advance.

Your posts say you bought your rig in August. Are you getting a new one already?

[patperry2766]

When I was in the car business and selling to a customer out of state,,I would call the tax office in the county in which the vehicle would ultimately reside. They would give me the tax rates and any other info required to legally register a vehicle.

We would do,the loan with the tax/reg info and costs included in the loan and just send it to their county/state of residence. I can't imagine it would be any different with the sale of a RV.

Call your local tax office, let them know what you want to do and they can give you all the info you need.

[Oaklevel]

Ask both states for how their out of state sales tax purchases are handled there will be differences. and as far of insurance your lender will require it but the state may not. Trailers in our state liability is covered buy the tow vehicle & do not have to have insurance to be tagged.

[johnrafael30]

Great topic! Due to economic crisis, tax return and other loan programs are the major concerns of people nowadays. Besides, they are also making big plans with their tax return. Maybe you are hoping to cover a brand new car or just have a remodeling project you want to do in your house.

[JamesBr]

I bought my trailer from a RV dealer in PA. They added the proper ammount of TAX to the total sale and when the Title of Origination was sent to me, they also included a check written out to the state DMV to cover taxes. All I had to cover was registration and titling fees when they processed the paperwork.

[tatest]

Where are you buying it. Come down to Oklahoma to buy, there is no sales tax collected, only an excise collected first time a vehicle is registered here. The dealer collects no taxes on a vehicle. (But a FW is not necessarily a vehicle here, so I don't know how that might be handled at point of sale, whether dealer collects sales tax or state comes after us for use tax later if we choose not to register a trailer as a vehicle).

I've bought out of state in other states, and had to pay sales tax in the state of purchase, and get temporary title and tag in that state, before I could move off the dealer's lot.

So it is very much a "which state" question.

[mowermech]

IMO, you will have to talk to the appropriate authorities in YOUR state, AND in the state where you plan to make the purchase.
The rules and regulations vary widely (and wildly) between states.
I have personal experience with California. If you buy from a CA dealer, he will charge you CA sales tax, AND he will register the vehicle in CA for you. when you get home, you will get nothing for it (especially if you live in Montana). You also have the option of paying the dealer to deliver your purchase to Nevada where you will take possession of it, saving the Ca taxes and registration.
However, if you buy from a private party, you can take the paperwork home and register the vehicle without paying CA anything.
I have done both dealer and private party purchases in CA.
All of the above, of course, is completely meaningless for YOU. Check the rules and regulations in YOUR state, and the state where you plan to make the purchase.
Good luck.

[lanerd]

We are CA residents and bought our first mh in AZ. We had to pay the AZ sales tax and was told that since the CA tax was less, that when we registered the mh in CA, CA DMV would refund us the difference.... never happened...lost about a grand on that deal. However, the sales tax was included in the loan.

Our 2nd mh was purchased in OR and they calculated the sales tax (and registration fees) for our place of residence in CA (state/county) and also included both in the loan.

So, it seems it depends upon the state of purchase.

Ron