How to avoid high state sales tax

[Sgt Beavis]

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.

And boy those Colorado registration fees will kick you in the balls.

Of course some folks have been registering their cars in Montana to get around it but the state has been cracking down.

Sponsored

 

[Wahoowa]

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.

Regardless of cost, do the right thing. Truth always catches up.

 

[That_Hal]

13% Tax here. Lol

What? Where is that?

 

[Straight 6]

What? Where is that?

I think he is Canadian so it's metric and doesn't work like ours does

 

[dejones64]

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

With the Bronco, and a few select items, you'll be able to live off the grid in the mountains; for 3 years!

 

[BroncoPVC]

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.

Yeah, unfortunately I believe Washington is the same way.

 

[BroncoJay]

As a bonus you moved to one the coolest states in the country! I love the PNW
Trails galore

 

[BroncoPVC]

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.

Good to know. I'll be bringing my truck up here in a few weeks.

 

[Cmarch0519]

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

To be clear, this is not just a civil citation like you would receive for speeding. Failing to register a vehicle in Washington to avoid paying sales tax is a Gross Misdemeanor crime. Paying the additional sales tax will be a lot cheaper.

 

[BroncoPVC]

So basically, thanks for waiting 20 years here's your new Bronco and welcome to a state that has 10% sales tax!! That's a lot of loot.

I guess the silver lining for me is that we now know there is very little difference between Badlands and the Sasquatch package. I suppose I can save a little money there.

Thanks for your help. I'm going to continue to look into this and try to figure something out.

 

[Bronco4lyfe85]

And boy those Colorado registration fees will kick you in the balls.

Of course some folks have been registering their cars in Montana to get around it but the state has been cracking down.

Well, part of the reason we pay all that tax and ABSURDLY high plate fees is because we have spectacular roads. Wait, we don’t? Oh, so you’re just saying I’ve been getting ripped off for my whole life.

Another reason Colorado sucks.

 

[Mac n Nevada]

If you are near the Seattle area, you can join the CHAZ/CHOP group if they start up again, I don't think they are charging taxes....

 

[jaspercasidino]

WA state has sales tax based on the dealer’s address and not where you register unless you purchase out of state (then you pay Use tax). Look up the local tax rate, add 0.3%, then 1.1% if you live in a RTA zone (this is on registration but still relevant to vehicle purchase price).

https://dor.wa.gov/taxes-rates/retail-sales-tax/destination-based-sales-tax

From link above:
The following are excluded from destination-based sales tax:

• Sales of motor vehicles, trailers, semi-trailers, aircraft, and watercraft. Sales tax is based on the seller’s location even if the seller delivers the items to customers.

 

[Rick Astley]

Start a small business, and gain a thorough comprehension of Section 179 of the Federal tax code. You'll be glad you did.

If we're on the topic of in-defensible frauds, this is also a good idea as well! This would hold up to IRS scrutiny about as well as stating "I heard it online!".... Even their most junior auditor would disallow this.

Please remember that the IRS can only go back to the year you were born when investigating fraudulent tax claims.

(Sorry, i'm a Federal compliance auditor and have a few State Auditors in the family as well)

 

[chrtra1]

...and Nevada too.

Las Vegas, the city of never ending road construction.

Sponsored