Pay taxes on my permanent addy, register in a diff county?
04-12-17, 12:27 PM
#1
Pit Crew
Thread Starter
Pay taxes on my permanent addy, register in a diff county?
Hello all, new to the forum with my new lexus as of yesterday (certified 2015 es300h).
My address on file is in a place where sales taxes are pretty cheap, so i paid relatively lower taxes with my purchase.
However, I have a temporary place near where I work where I'm just renting a room from a friend, where taxes are HIGH.
BUT having my vehicle registered here would allow me to park on the RTD stations. They also require emissions testing up there but with a hybrid, maybe not? (I need to find out).
Anyhow, if I were to do that, would the DMV collect the tax difference when I register the car?
Mucho thanks in advance.
My address on file is in a place where sales taxes are pretty cheap, so i paid relatively lower taxes with my purchase.
However, I have a temporary place near where I work where I'm just renting a room from a friend, where taxes are HIGH.
BUT having my vehicle registered here would allow me to park on the RTD stations. They also require emissions testing up there but with a hybrid, maybe not? (I need to find out).
Anyhow, if I were to do that, would the DMV collect the tax difference when I register the car?
Mucho thanks in advance.
04-12-17, 12:47 PM
#2
Hello all, new to the forum with my new lexus as of yesterday (certified 2015 es300h).
My address on file is in a place where sales taxes are pretty cheap, so i paid relatively lower taxes with my purchase.
However, I have a temporary place near where I work where I'm just renting a room from a friend, where taxes are HIGH.
BUT having my vehicle registered here would allow me to park on the RTD stations. They also require emissions testing up there but with a hybrid, maybe not? (I need to find out).
Anyhow, if I were to do that, would the DMV collect the tax difference when I register the car?
Mucho thanks in advance.
My address on file is in a place where sales taxes are pretty cheap, so i paid relatively lower taxes with my purchase.
However, I have a temporary place near where I work where I'm just renting a room from a friend, where taxes are HIGH.
BUT having my vehicle registered here would allow me to park on the RTD stations. They also require emissions testing up there but with a hybrid, maybe not? (I need to find out).
Anyhow, if I were to do that, would the DMV collect the tax difference when I register the car?
Mucho thanks in advance.
04-12-17, 01:03 PM
#3
Pit Crew
Thread Starter
Makes sense, but because i know on used car purchases from private parties, you'd pay the tax when you register so that's why I am concerned.
04-12-17, 01:25 PM
#4
04-12-17, 01:59 PM
#5
Lexus Fanatic
You pay taxes where the vehicle is registered. So if you buy a car in one state and register it in another state, sales taxes are paid to the state where the car is registered, not where it was sold. If you bought the car in one state and register it there, pay sales tax, then you re-register the car in another state...they're going to want taxes paid to them when you register it there.
Happens here all the time when people move from say MD to VA, they are always surprised to find out that VA wants sales tax paid on their vehicles book value when they are registered there, even though their vehicles are not recently bought.
Happens here all the time when people move from say MD to VA, they are always surprised to find out that VA wants sales tax paid on their vehicles book value when they are registered there, even though their vehicles are not recently bought.
04-12-17, 02:00 PM
#6
Interesting situation. I would think the longer you wait, the better. At least until the state has processed title and tag paperwork. Also, if you go to register the car in the new location, will they make you change the address on your license as well?
04-12-17, 02:03 PM
#7
You pay taxes where the vehicle is registered. So if you buy a car in one state and register it in another state, sales taxes are paid to the state where the car is registered, not where it was sold. If you bought the car in one state and register it there, pay sales tax, then you re-register the car in another state...they're going to want taxes paid to them when you register it there.
Happens here all the time when people move from say MD to VA, they are always surprised to find out that VA wants sales tax paid on their vehicles book value when they are registered there, even though their vehicles are not recently bought.
Happens here all the time when people move from say MD to VA, they are always surprised to find out that VA wants sales tax paid on their vehicles book value when they are registered there, even though their vehicles are not recently bought.
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04-12-17, 02:04 PM
#8
Moderator: LFA, Clubhouse
Hello all, new to the forum with my new lexus as of yesterday (certified 2015 es300h).
My address on file is in a place where sales taxes are pretty cheap, so i paid relatively lower taxes with my purchase.
However, I have a temporary place near where I work where I'm just renting a room from a friend, where taxes are HIGH.
BUT having my vehicle registered here would allow me to park on the RTD stations. They also require emissions testing up there but with a hybrid, maybe not? (I need to find out).
Anyhow, if I were to do that, would the DMV collect the tax difference when I register the car?
My address on file is in a place where sales taxes are pretty cheap, so i paid relatively lower taxes with my purchase.
However, I have a temporary place near where I work where I'm just renting a room from a friend, where taxes are HIGH.
BUT having my vehicle registered here would allow me to park on the RTD stations. They also require emissions testing up there but with a hybrid, maybe not? (I need to find out).
Anyhow, if I were to do that, would the DMV collect the tax difference when I register the car?
I'm surprised the vehicle registration address determines RTD parking discount, but according to the RTD website, that is how it works. I'd think it should be based on proof of residence - seems to be a little blind to the possibility of multiple-property ownership. More reasons why RTD sucks, I suppose.
Also, the OP hasn't "technically moved" as this is a first-time car registration, which is what the gov cares about as far as tax collections.
04-12-17, 02:10 PM
#9
Moderator: LFA, Clubhouse
OP would have to look into CO law on this. CA, for example, considers vehicles "new" (i.e., still subject to state tax as if were registered "new") if the new car was registered out-of-state for IIRC either less than 6 months or 12 months (don't remember).
This is correct, but just wanted to point out OP apparently is registering the car in CO either way. It is still an analogous situation since CO determines tax owed by registration county.
You pay taxes where the vehicle is registered. So if you buy a car in one state and register it in another state, sales taxes are paid to the state where the car is registered, not where it was sold. If you bought the car in one state and register it there, pay sales tax, then you re-register the car in another state...they're going to want taxes paid to them when you register it there.
Happens here all the time when people move from say MD to VA, they are always surprised to find out that VA wants sales tax paid on their vehicles book value when they are registered there, even though their vehicles are not recently bought.
Happens here all the time when people move from say MD to VA, they are always surprised to find out that VA wants sales tax paid on their vehicles book value when they are registered there, even though their vehicles are not recently bought.
04-12-17, 02:11 PM
#10
Lexus Fanatic
Sounds like he has bought and registered the vehicle at his "permanent" address. He is working temporary somewhere else and wants to register the car there for a favorable parking situation. If he waits until paperwork processed and recorded, seems to me it would be the same as a move.
To give you a real world example when my Dad retired his LS430 was a company car, his company sold it to him for $1,000, although the car was worth a lot more than that. Soon after retiring, he moved to VA from MD, and went to register the car in VA. They came back and handed him a huge sales tax bill based on the book value of the car. He tried to argue that he had a bill of sale from his company showing that he had recently purchased the car for $1,000, and thus the taxes should be based off of that...but no, VA required him to pay sales tax on the whole $35k or so book value of the car at the time since the $1k price was so far off. So he paid more in sales taxes in VA than he did to buy the car from his company lol
Originally Posted by gengar
This is correct, but just wanted to point out OP apparently is registering the car in CO either way. It is still an analogous situation since CO determines tax owed by registration county.
Bottom line is...jurisdictions want their taxes!
04-12-17, 02:34 PM
#11
Lexus Fanatic
iTrader: (20)
another reason i live in florida. 
04-12-17, 03:33 PM
#12
Pit Crew
Thread Starter
Almost certainly. In CO, the DMV is actually split up by county, and each county's DMV branch ultimately collects the registration fees - so they're not going to mess up on this. If you choose to register in a higher sales tax county than the county you specified to the dealer, the county you register in is going to want the difference.
I'm surprised the vehicle registration address determines RTD parking discount, but according to the RTD website, that is how it works. I'd think it should be based on proof of residence - seems to be a little blind to the possibility of multiple-property ownership. More reasons why RTD sucks, I suppose.
Cars are an exception because they represent big money purchases and need to be registered with a state entity, so our money-grubbing state tax collectors can't keep their hands off - and they have the logistical means to easily to do so.
Also, the OP hasn't "technically moved" as this is a first-time car registration, which is what the gov cares about as far as tax collections.
I'm surprised the vehicle registration address determines RTD parking discount, but according to the RTD website, that is how it works. I'd think it should be based on proof of residence - seems to be a little blind to the possibility of multiple-property ownership. More reasons why RTD sucks, I suppose.
Cars are an exception because they represent big money purchases and need to be registered with a state entity, so our money-grubbing state tax collectors can't keep their hands off - and they have the logistical means to easily to do so.
Also, the OP hasn't "technically moved" as this is a first-time car registration, which is what the gov cares about as far as tax collections.
Right on the dot, precisely the information I was looking for in Colorado. THANK YOU!
RTD DOES SUCK!!!! ahhh just trying to maximize the RTD card my school provided that still works after graduating but they make me pay $4 a day to park at any of the stations just cuz I'm not registered in Denver.
But driving and parking in Denver DT is just as horrendous. And I know they're gonna ding ding ding dong dong ding on my new (used) lexus all day everyday in those compacted inhumane parking lots.
Last edited by newyerker; 04-12-17 at 03:37 PM.
04-14-17, 05:57 AM
#13
Pole Position
The car has not been sold, so sales tax would not apply. However use taxes and RTD taxes and all those other taxes will be collected when you renew your tags. On the back of the registration it explains all the myriad of confused taxes. Sort of like your phone bill. I think (not sure) that the reason you pay less for parking if you are a resident, is because you pay for a portion of it when you register, and your paying an RTD tax on almost everything else. For example, a portion of all sales tax is RTD tax. I think even a portion of property taxes go to RTD. So one way or the other, your going to pay, and pay, and PAY and PAY!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! Either pay it at the time of parking, or pay it in sales tax, vehicle tags, property tx etc.
04-14-17, 06:04 AM
#14
Pole Position
One other thing I found when looking to register in a different county. The insurance company was well ahead of that idea. Surcharge for excessive distance from work. The semi-rural county I could have registered in, was actually more than(overcrowded) Arapahoe county anyway. so no saving there. By the time I got done, it was actually cheaper to keep everything in Arapahoe county.
04-14-17, 11:42 AM
#15
The Virginia sales tax thing is absolutely brutal as well. It isn't a sales tax at all really, more like a registration or road tax that a lot of foreign countries assess their drivers every year.
And if you really don't want to pay sales tax, register your car in Montana. They don't charge sales tax at all on vehicle sales. There are companies that will help you file the paperwork for a shell corporation in Montana, you register your car under the shell corporation, thus no sales tax paid, you get a Montana plate, renew your registration via mail every year to the Montana DMV. It does cost several hundred(maybe more than a thousand) to set up this shell corporation, but if you're buying a vintage $2 million dollar Ferrari and are faced with a 9.25% sales tax from your state, its well worth it.