It has always been my understanding that if you trade in avehicle on a new one you only pay taxes on the difference. I realize this varies state to state but basically you but a $40k truck and your trading in a $20k vehicle you would only pay taxes on the $20k difference. In my quest for a new truck I have been hearing mixed things about how this works, the place I will likely buy the truck from in texas says they think that I will still have to pay 4% while the guy at the dealership last night said anything bought out of state doesnt get a tax break at all (anyone who read my story knows the guy was an idiot). Anyone know where I could find this info or anyone from louisiana that knows?

 

I know that you pay the taxes in the state that you register the truck in, not the state you buy it in.

 

I would get in touch with the tag agency.

 

That makes sense speak, which leads me to believe it aint the way it's gonna go down ...

 

That is the way it has gone down for me in the past, I am just confused about the whole buying across state lines. I cant imagine it would matter, I purchased the truck here, selling it somewhere else, buying the new one and registering it here again. I will make a few calls tomorrow and let you guys know.

 

I'm not from Louisiana, but I did fine this:

http://www.onlinedmv.com/LA_Louisian...r_vehicles.htm

The sales and use tax is based on the vehicle price less trade-in value. Don't let 'em tell you different. I've bought a few cars in MO and brought 'em here to WI, it has always worked this way.

 

Your sales tax will be assessed by the state you register in and it will be the price minus trade. You have already paid the taxes on the value of the trade in so getting taxed again on that amount would be double taxation.

Some state also can sell it to you without taxing if you are taking it immediately out of state to register elsewhere. You will be taxed on the cash paid at the time of registration.

Some people pay the tax as part of the purchase as they can finance the tax as part of the purchase. Paying it toyour DMV at registration they want a check and 5% of 20,000 is $1,000 so sometimes people do not have that to pay when they register.

 

You are correct andy, I checked with a few notaries today. See, I knew all of this but talking with some of these people confused me.[:@]

 

the rule of thumb is

if you reside in a sales tax free state like Oregon or any other and you purchase a vehicle in a state like Ca or AZ where they have sales tax, you will not have to pay the tax if you can prove that the vehicle will be registered in your home state where sales tax does not exist.

sheww...thats a lot!!!

you will have to pay for a temp registration tag unless you can get your home state to issue it over the internet.

this was done by a contractor from the upper midwest while workin in AZ.

he traded in an older company vehicle and bought a brand new one here. they have no sales tax back ghome and his office is located in the other state. they did not charge sales tax at all. not too sure about the tags.