Out of State Dealers and Sales Tax

[Carl O]

Hello,

When I moved from Caliornia (Walnut Creek - SF Bay Area) to Washington and I registered my teardrop, I was hit with a big tax bill. It was quite unexpected. When I think about buying a Scamp or Casita from the factory, would I have to pay their state tax (Minnesota or Texas) and then Washington's registration tax on top of that?

I understand that if I buy an Escape in Canada, I pay Canadian taxes but put in a form at the border to have the money returned. Buying a new trailer in the U.S. should be at least that easy (I would hope).

Thanks,

-Carl

[Brian B-P]

Usually you only pay sales tax for one of the states or provinces involved; mail/phone/internet order forms routinely state that taxes apply based on where the recipient lives, not the company's location.

Escapes come from British Columbia, and thus are presumably subject to both federal and provincial taxes (Goods and Services Tax, or GST; and Provincial Sales Tax). Both are likely refunded when you declare you bought it new and are permanently taking it away (except for vacation visits, of course!). This brings up the problem that every jurisdiction is different.

When I lived in Ontario, I found that provincial sales tax was charged on sales of even used vehicles, and was collected by the license registry offices - no tax paid, no plate; like Washington. The manufacturer can't control what your state of residence wants to do.

I know from my own visits that, unlike some states and provinces, Texas does not refund state taxes to visitors who make ordinary purchases there. Perhaps Casita has an arrangement by which they do not charge the Texas state tax at all if they deliver it to you outside of Texas?

[Robert Brummett]

When I bought my Casita I was living in PA. Casita gave me a temporary tag and when I got home I registered the trailer in PA and paid the sales tax for it. There was no sales tax collected in Texas. Never could figger out why PA deserved to collect the sales tax on it, but then that's gubmint.

[Carl O]

Brian,

You hit upon something that was on my mind...if I go to either of those states to pick up the trailer in person do I pay their state taxe? If I have them ship it to me, do I just have to pay the shipping cost and no state taxes? I know when I register it here I'll have to pay a licensing tax.

I understand the Candian/import issue better and I love the Escape trailer...too bad your darn money is becoming more valuable and the exchange rate is horrible right now (from my point of view).

Thanks,

-Carl

[pjanits]

I remember some article about retirees becoming residents of Wyoming or was it South Dakota just to escape these taxes.
They are "residents" but also perminant RV'ers so they may stop overnight there occasionally.

[jack smith]

Not sure this correct in all cases.... but this has worked for me with a truck and camper, (purchased in Idaho) and a motorcycle. (purchased in Mississippi)

If you take your purchase out of state of purchase within "X" number of days, and register it in your home state, you don't have to pay sales tax there .... but are liable for the tax in your state of residence. In my case (no sales taxes in Anchorage, AK) I paid NO sales tax.

I did have to fill out a form stating that I would have it out of state "asap" and had also registered them (truck and motorcycle) here in Alaska prior to picking them up.....

Anyway, it does pay to check. As the saying goes: "your mileage may vary"

[Robert Scallan]

The factory in MN said I will not have to pay any MN take on my new Scamp when I pick it up on the 22nd....I suppose I will get hit with FL tax when I bring it home and get my FL tags.


LIFE IS GOOD!

[jack smith]

The factory in MN said I will not have to pay any MN take on my new Scamp when I pick it up on the 22nd....I suppose I will get hit with FL tax when I bring it home and get my FL tags.
LIFE IS GOOD!

I wouldn't be a bit surprised!

[Gary Lynch]

Casita gives you a 30 day permit to get back to your home State and there is no Texas taxes paid. When you get your new tags in your home State, they pummel you for the sales tax.

[George Cathcart]

Casita: picked up at factory, no TX tax was charged, only small fee for temporary 30 day license. Register in home state (CO) within 30 days, paid only state tax (then 2.9%, slightly more now), but no local county tax, which would be about 5% additional.

Same deal on any vehicle purchased in TX or NM. Not true on vehicles purchased in CA or AZ, where we are taxed by both states.

[Gina D.]

Not true on vehicles purchased in CA or AZ,

Not true under one circumstance.

I was considering purchasing a new trailer in Phoenix. They said they had to deliver to Blythe, Ca to avoid me having to pay AZ state tax. It's right on the border, inside Ca.

The delivery fee was reasonable, 50 bucks, probably less than thier cost. I guess it makes a difference WHERE you take possesion.

Check to see if you are taxed if they deliver it to you.

Califonia hit me when I brought my Dads car here from Seattle. Yep, double tax, even tho it was an inheiritance!

Hint, for those that see this as a grey area when buying used. Have your seller put down a lower price on the BOS or title.

The advantage.. you pay less sales tax.

The disadvantage, if you have a legal problem, seller is only liable for the amount on the BOS.

[Vivian]

I remember some article about retirees becoming residents of Wyoming or was it South Dakota just to escape these taxes.
They are "residents" but also perminant RV'ers so they may stop overnight there occasionally.

Full timers establish residency in these states to avoid paying state income tax, but both states have sales tax, although at a lower rate than some of the other states that do not collect state income tax.

Vivian

[Darwin Maring]

I have lived in many states and each have their special way of getting into your pocket. Some charge the difference between what you paid in the other state and what they charge, example, if you pay 3% in the other state and your state has a 4% tax, they may charge you the 1% difference.

Other states have an Ad Valorem tax (GA). Mystic to say the least and they get into your pocket.

You should call Scamp and see if they will put temp plates on the camper, not charge sales tax, and you be charged your state tax when you get home.

Would it be possible to pay for the Scamp while you were in your state, have them send the Certificate of Origin, you get the plates then go and pick up the unit?

The state of Montana allows you to do a Montana corporation where there is no state sales tax and you license it there and your state does not charge sales tax. This is always posted in the Good Sam Highways magazine in the back. In this case, beware of the Ad Valorem if your state has it.

[Gina D.]

I don't know if they do this anymore, but when I lived in Oregon, and was in Washington frequently, I had a card that exempted me from Wash. State sales tax. I forgot what they call it.

You could get it at just about any store just by showing your Oregon ID.

[Donna D.]

I don't know if they do this anymore, but when I lived in Oregon, and was in Washington frequently, I had a card that exempted me from Wash. State sales tax. I forgot what they call it.

You could get it at just about any store just by showing your Oregon ID.

Don't laugh, but everyone referred to it as the "Green Card," because it WAS green. I haven't used one for a number of years, my Oregon State issued drivers license is what all the store keepers ask for now....at least the places I've shopped. Most stores have a minimum purchase requirement in order for us Oregonians to get out of paying the tax...usually around $20.

Since we don't pay sales tax here in Oregon, if a person keeps their receipts for sales tax and files income tax with deductions, we can write off the sales tax....but, that's a tiny percentage.

[Brian B-P]

I think the usual deciding factor is place of residence, rather than delivery point, but there's lots of good information provided here based on actual experience. I believe that Casita told me that I would not pay Texas tax, but would pay our GST, but since I didn't choose to buy their trailer I never saw how it would work out.

I know people in Ontario used the same phony Bill Of Sale value method as Gina described to commit tax fraud there, and apparently it worked. I suppose you pay your money (or don't pay your taxes) and take your chances. Not for me. I also would be cautious about dealing with any business which was willing to do this, since I would wonder what other laws they considered optional.