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How to avoid high state sales tax

BroncoPVC

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I just recently moved from Michigan to Washington. I was living in Michigan when the reservation was made but will be in Washington when I take delivery. Seeing that Washington sales tax is about 4% higher than Michigan I was thinking I would just take delivery from a dealer in Michigan or another state with even lower sales tax. The closer I looked it seems that regardless of where I take delivery I would still have to pay Washington's crazy 9.7% sales tax. Does anyone have any insight into how this can be avoided? Am I missing something here?
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I just recently moved from Michigan to Washington. I was living in Michigan when the reservation was made but will be in Washington when I take delivery. Seeing that Washington sales tax is about 4% higher than Michigan I was thinking I would just take delivery from a dealer in Michigan or another state with even lower sales tax. The closer I looked it seems that regardless of where I take delivery I would still have to pay Washington's crazy 9.7% sales tax. Does anyone have any insight into how this can be avoided? Am I missing something here?
Easy. Get a PO box in Florida and register it here, a lot of folks from the Northeast do it, they also register to vote with the added bonus they get to vote twice in the general election. Big thing in South Florida.
 

AKaye

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You can trade in a vehicle with a lot of equity. You won't have to pay sales tax on the trade-in value as long as you apply it to the new vehicle purchase.

I've heard some states don't allow this so make sure you know the laws beforehand.
 

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jtzako

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You pay the tax where it is registered. You could register it in a low tax state if you have 'residency' status there but wherever you actually live may have laws regarding that. In Colorado you have 90 days to register your vehicle in-state. You cant legally have an out of state vehicle after that unless you have military exemption. Many other states have similar laws.
 

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I just recently moved from Michigan to Washington. I was living in Michigan when the reservation was made but will be in Washington when I take delivery. Seeing that Washington sales tax is about 4% higher than Michigan I was thinking I would just take delivery from a dealer in Michigan or another state with even lower sales tax. The closer I looked it seems that regardless of where I take delivery I would still have to pay Washington's crazy 9.7% sales tax. Does anyone have any insight into how this can be avoided? Am I missing something here?
I have done this many times. When you purchase a vehicle out of state, you pay sales tax for the state you live in once you register it. With a new vehicle, the dealer usually will take care of it. When buying from private owner, you have to pay sales tax when you go to DMV to register it.
 

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Shoulda moved to Oregon instead of Washington
 

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fv9

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Welcome to WA! I’m born and raised. Unless the vehicle had been registered in another state for 90 prior to registering it in WA, you will get hit with the use tax when you register it. Also, depending on where you are, police look for out of state plates that are clearly being used by residents. We see it a lot in Clark county since we border OR and they do not have a sales tax.
 

Rick Astley

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As a WA resident, I have the secret sauce you're trying to go down on.

Here's what you do to avoid WA taxation: Buy that Bronco out of state, preferably in a state where you have close family.

You're also going to need your drivers license to be of that other state and have some bills such as cable, phone and water sent to the family address.

License and insure that Bronco in the state with your family.

Drive the Bronco in WA all day long (and twice as far on Sunday), but pray every.single.day that you never have to call AAA, or get a ticket, or even pulled over. And if you get pulled over, you're about twice as likely to get a ticket as the WSP is trained to identify if you're really living in-state with out-of-state plates and violating the 15-day license requirements.

Otherwise, WA DOL will get wind that you operate the vehicle in WA but purchased elsewhere and when you go to renew tabs or update your drivers license, they will hit you with the remaining sales tax that you used your Oklahoma Credit Card on.

You only have to do this for 3 years! Then you can convert the plates and license to WA.

I also suggest driving cars from before 1964 as tabs were not mandated until 1964, so if you roll '63 or before, you're exempt from tolls. Have fun on the roadways!

WA State DOL state-transfer
 

Karl_in_Chicago

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As a WA resident, I have the secret sauce you're trying to go down on.

Here's what you do to avoid WA taxation: Buy that Bronco out of state, preferably in a state where you have close family.

You're also going to need your drivers license to be of that other state and have some bills such as cable, phone and water sent to the family address.

License and insure that Bronco in the state with your family.

Drive the Bronco in WA all day long (and twice as far on Sunday), but pray every.single.day that you never have to call AAA, or get a ticket, or even pulled over. And if you get pulled over, you're about twice as likely to get a ticket as the WSP is trained to identify if you're really living in-state with out-of-state plates and violating the 15-day license requirements.

Otherwise, WA DOL will get wind that you operate the vehicle in WA but purchased elsewhere and when you go to renew tabs or update your drivers license, they will hit you with the remaining sales tax that you used your Oklahoma Credit Card on.

You only have to do this for 3 years! Then you can convert the plates and license to WA.

I also suggest driving cars from before 1964 as tabs were not mandated until 1964, so if you roll '63 or before, you're exempt from tolls. Have fun on the roadways!

WA State DOL state-transfer
How does one avoid committing insurance fraud in this scenario?
 

Rick Astley

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I just recently moved from Michigan to Washington. I was living in Michigan when the reservation was made but will be in Washington when I take delivery. Seeing that Washington sales tax is about 4% higher than Michigan I was thinking I would just take delivery from a dealer in Michigan or another state with even lower sales tax. The closer I looked it seems that regardless of where I take delivery I would still have to pay Washington's crazy 9.7% sales tax. Does anyone have any insight into how this can be avoided? Am I missing something here?
I should also point out that new vehicle sales tax is higher than regular sales tax, so add 0.3% to whatever local sales tax you have in-state.

Plus regional use-rate sales tax increases.

Plus Regional Transit Authority (RTA) tax rates in those areas.

And the countries second highest state gasoline tax at $0.49 PER GALLON going into the state coffers (While actively suing the federal government from raising the federal gas tax which has been at $0.18 since the 1970's, because it "hurts poor families")
 

Rick Astley

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How does one avoid committing insurance fraud in this scenario?
You're committing fraud the entire time, so I assumed if you were going to have a scheme to commit tax fraud, you didn't care about also committing insurance fraud.

The direct answer to your question is: You're already committing insurance fraud.

Note that I didn't say my scheme was LEGAL, just that it's a methodology to circumvent sales tax. Not a particularly easy or rewarding one, but it might work.

Would I do it? Heck no! Probably get caught.
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