Buying a new car in Delaware to avoid tax

[Anonymous]

Does it make sense to buy a new EV in Delaware to avoid paying about $2,500 in sales taxes? Or are their regulations or impediments we aren't aware of?

[Anonymous]

I don't think this will work. When you bring it back to your home state to be registered, they will ask for proof that taxes were paid. If you don't pay taxes through the dealer, taxes will be assessed when you register the car. At least I think that's what happens!

[Anonymous]

Anonymous wrote:I don't think this will work. When you bring it back to your home state to be registered, they will ask for proof that taxes were paid. If you don't pay taxes through the dealer, taxes will be assessed when you register the car. At least I think that's what happens!

I wondered if there was some impediment like that. Anyone else know whether this is the case?

[Anonymous]

Yes it’s the case. We bought a car in NH 3 years ago. 3 years later we moved to MD and when we came to register our car, they made us pay 6% in sales tax. That was an unpleasant surprise.

[Anonymous]

Anonymous wrote:Yes it’s the case. We bought a car in NH 3 years ago. 3 years later we moved to MD and when we came to register our car, they made us pay 6% in sales tax. That was an unpleasant surprise.

I’m surprised they made you pay on a 3 year old car!

[Anonymous]

There's reciprocity so you'll end up paying your local tax on it. Dealers around this area are used to this, like a dealer in VA sells to a customer in MD, and will charge MD tax on it.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Yes it’s the case. We bought a car in NH 3 years ago. 3 years later we moved to MD and when we came to register our car, they made us pay 6% in sales tax. That was an unpleasant surprise.

I’m surprised they made you pay on a 3 year old car!

Yes, this is unusual. Usually it only applies for something bought recently (like last 12 months or less). To prevent what OP is trying to do. The law isn’t meant to tax people who are simply moving from one state to another.

[Anonymous]

Anonymous wrote:I don't think this will work. When you bring it back to your home state to be registered, they will ask for proof that taxes were paid. If you don't pay taxes through the dealer, taxes will be assessed when you register the car. At least I think that's what happens!

I used to work for a car dealer. This is what happens.

[Anonymous]

Even delawareans pay tax on car purchases, i think it is around 4% paid to register car. The only real advantage of buying in DE is dealerships are open on sundays.

Incidentally there is no sales tax on food and clothing in PA, no doubt to keep residents of the southeastern part of the commonwealth from sneaking across the border to the target in wilmington.

[Anonymous]

I've bought plenty of cars out of the state and you always have to sales tax when you register and title the car. There is no way around it. Either you pay for it at the dealer or directly to the DMV.

[Anonymous]

Anonymous wrote:Yes it’s the case. We bought a car in NH 3 years ago. 3 years later we moved to MD and when we came to register our car, they made us pay 6% in sales tax. That was an unpleasant surprise.

It doesn't make any sense. You'd bought your car in NH 3 years ago and registered it in NH. There's no way MD can make you pay tax on a transaction at another state and paid tax for it.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Yes it’s the case. We bought a car in NH 3 years ago. 3 years later we moved to MD and when we came to register our car, they made us pay 6% in sales tax. That was an unpleasant surprise.

It doesn't make any sense. You'd bought your car in NH 3 years ago and registered it in NH. There's no way MD can make you pay tax on a transaction at another state and paid tax for it.

Yeah, this is BS. I lived in NH before moving to DC. I didn't have to pay tax here when I moved down with my car. I don't think they've changed the law in the last few years.

[Anonymous]

They make you pay sales tax where you live. I bought a car in PA and live in VA.

[Anonymous]

MD definitely makes you pay if the state you’re coming from doesn’t have a sales tax. I bought a car in PA, moved to VA and then moved to MD. They still made me pay the tax when I reregistered my car

[Anonymous]

This is hilarious. If cars were tax free in Delaware to out of state buyers, there would be zero car dealerships in MD because everyone would hop the state border to save thousands.