Buying a vehicle for Cash in GA

[TheDude_Abides]

So, My wife and I have been pondering this and hopefully someone can answer this before we go to buy the vehicle on Monday. 

 

The wife and I are buying a 4Runner in Fort Oglthorpe, GA for cash FROM A DEALER. The question is: Where Do we pay tax? Both states? I was under the assumption that we paid taxes in our beautiful home state of TN but won't that dealer need to pay his tax on the sale? Please don't tell me we will have to pay two state's tax. If so that might be a deal breaker.

[battleop]

I'm pretty sure you pay the tax where you register the vehicle if it's out of state.

[Guest Field Boss]

The state of TN will collect the taxes and the vehicle will be register in TN also

[monkeylizard]

You'll pay the TN taxes when you register the vehicle at your county clerk's office. There will be no GA taxes.

[jtmaze]

What about a gift transfer from another state? My father in law is giving my daughter a car for her college graduation and the car is registered in MI. Do you have to pay TN sales tax even with a gift affidavit since TN sales tax has never been paid on the vehicle. I know when I moved to Tx several years ago they had a $150 flat tax for vehicles transferring in from out of state to cover TX sales tax since it had never been paid in TX. I was so glad when I found this out that I had left two RV(off-road trucks) at my parents house when I moved. JTM We the People of the United States, in order to form a more Perfect Union......

[NextExit]

What about a gift transfer from another state? My father in law is giving my daughter a car for her college graduation and the car is registered in MI. Do you have to pay TN sales tax even with a gift affidavit since TN sales tax has never been paid on the vehicle. I know when I moved to Tx several years ago they had a $150 flat tax for vehicles transferring in from out of state to cover TX sales tax since it had never been paid in TX. I was so glad when I found this out that I had left two RV(off-road trucks) at my parents house when I moved. JTM We the People of the United States, in order to form a more Perfect Union......

Yes.  You'll pay the tax on the fair market value of the car.  I went thru that a couple years ago when my niece gave me her car. 

[jtmaze]

That is what I was afraid of. JTM We the People of the United States, in order to form a more Perfect Union......

[jtmaze]

[quote name="NextExit" post="1180545" timestamp="1408302646"]Yes. You'll pay the tax on the fair market value of the car. I went thru that a couple years ago when my niece gave me her car. [/quote] I got to thinking about it and that may have been because it was your niece. Parents and grandparents are able to give children a car without having to pay tax on it. I gave my nephew a car a few years ago and he had to pay fair market value tax on it. I am more wondering if when you bring a car in from out of state do you have to pay prorated sales tax on it to register it in TN since no TN sales tax ha been paid on the vehicle. JTM We the People of the United States, in order to form a more Perfect Union......

[monkeylizard]

If you mean bring in a vehicle you already own in another state, no, no sales tax is due. The taxes are only applied when ownership changes.

 

If the car is registered and titled in her name in MI, then any MI taxes are satisfied. If/when it's registered in her name in TN, there is no transfer of ownership so no sales taxes. Just the registration fees.

[NextExit]

I got to thinking about it and that may have been because it was your niece. Parents and grandparents are able to give children a car without having to pay tax on it. I gave my nephew a car a few years ago and he had to pay fair market value tax on it. I am more wondering if when you bring a car in from out of state do you have to pay prorated sales tax on it to register it in TN since no TN sales tax ha been paid on the vehicle. JTM We the People of the United States, in order to form a more Perfect Union......

Sorry, forgot to mention that my niece is from NY and the car was registered there.  So when I brought it here and told the clerk it was a gift, she looked up the value and I paid the sales tax on it.

[peejman]

It might be too late at this point.... but if GA has a lower tax rate on cars, get the dealer to see if there is reciprocity agreement between TN and GA. 

 

I bought a car from my uncle in MI (dealer at the time) a number of years ago.  I paid MI sales tax when I bought the car.  When I registered it in TN, I gave the clerk a copy of the form/BOS stating I'd paid the sales tax in MI when I bought it, so I did not have pay any TN tax.  Saved me a few hundred $$. 

[kckndrgn]

Yes.  You'll pay the tax on the fair market value of the car.  I went thru that a couple years ago when my niece gave me her car. 

 

Not necessarily.  My wife and I gifted one of our old cars to her parents.  By filling out a form online they were able to transfer the registration to their name and did not pay any tax/fee other than for the plates.

 

There is a form you can print out and specify that it's a gift to avoid paying the taxes.  At least that's what I recall doing as this was about 4 yrs ago.

[jtmaze]

That form is only good for certain relationships. Nieces and nephews don't count.