So if we trade in our vehicle at Granger or out of state, won't we get that tax reduction?
This is what I can save on taxes for my car
State Tax = $1,716
This is what I can save on taxes for my car
State Tax = $1,716
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Thank you for looking this up. I knew I was going to have to figure this out eventually. You've just saved me some time.So here’s something else for everyone to take a look at. Page 3 says this:
Vehicles purchased outside of Colorado
Motor vehicle sales made outside of Colorado are not subject to Colorado sales tax. Generally, a vehicle sale occurs at the location where the purchaser takes possession of the vehicle.
If a Colorado resident purchases a motor vehicle outside of Colorado and registers it in Colorado, the purchaser must pay Colorado use tax and any applicable local use tax at the time of registration. If the purchaser paid any sales, use, or other similar tax legally imposed by the state in which the sale took place, the purchaser is allowed a credit against the use tax due for the sales tax paid.
https://www.colorado.gov/pacific/sites/default/files/SUTT_MotorVehicles.pdf
So, if sales tax is 6% in Iowa and 8.31%in Denver, that’s $231 per $10,000 spent that you save on taxes. Plus you get to reduce your first year use tax by the amount of sales tax paid in Iowa. So a $40,000 Bronco saves $924 sales tax and you get $2,400 to credit towards your use tax. I don’t know if that carries forward, but you could get out of use tax for 1-3 years! That’s another $800 minimum for a total savings of $1,724!
@Granger Ford do you have any experience with this little nugget of info?