HELP: Out of State tax question (Arizona/New Mexico)

[mini.mble]

Hihi everyone,

Need a little help from you good folks.

I am picking up my car in Arizona soon but live in and will title and license my car in New Mexico. Do I have to pay Arizona tax if I pick it up in Arizona?
Does this vary from state to state?

Any help would be greatly appreciated,

Kelly ^_^

[stryder]

You should only have to pay any registration/sales/inspection type fees. IE if AZ requires all cars to be sold to be inspected, you'd have to pay that. You shouldn't pay sales tax except to the state you register the car in. In your case NM. So you might have to pay $100 or less to AZ (not sure about specifics) but the big sales tax you should pay just as if you were buying the car in NM.

Is your dealer experienced in selling to NM residents? Generally they've been through it all and can be quite helpful if you ask.

[the W'rkncacnter]

You should only have to pay sales tax in the state you register the car. I lucked out because I bought my car in Virginia, but my permanent address (school and then military) is in Oregon, which has no sales tax. I'm not saying to cheat the system, but if you've got any relatives in Oregon, New Hampshire, or Deleware...*wink* *wink*...

[dukesantos]

AZ fee for a temporary non-resident 30 day (paper) plate is $15, but the dealer probably will not charge you for it. The AZ title fee is $ 4 and they will charge for that and you will be sent the title in the mail by AZ. Depending on whether or not your state has agreements with AZ they may collect sales tax at the time of delivery for your state or they may not. I would check with your state ahead of time so you know and advise the dealer. I purchased a MINI in AZ and drove it to my home state, no problems.

[mini.mble]

Thanks for the replies but....

It's looking more like I will have to pay it. Anyone know what the actual Arizona Transaction Privilege tax % is. The page below lists rates for almost every state but AZ.
I'm about to give in and pay $1600 for nothing (no wait... for having the privilege of buying in AZ, bah!!!)

My dealer sent me this: http://www.revenue.state.az.us/mvtaxrate.htm

I have a lot of calling to do tomorrow.

[AprilWhine]

Moved to the Southwest forum to get local information.

[tontobird]

I purchased a car in Florida and live in PA. I paid the sales tax to the dealer in Florida and sent in the paperwork stating so when I registered the car. So then I guess PA collected from FL.

Once when I purchased a car in PA from a private owner and registered it in MD, I had to pay the sales tax at the motor vehicle agency when registering my car.

Good luck, you shouldn't have any problems!

[CooperSAZ]

As a state tax accountant, this should not be an issue but becareful! As long as you can get out of the dealership without paying sales tax, you will be obligated to pay the use tax with the state your are registering the vehicle with! Example, you bring the car back to NM, and register it. The MVD will want proof that you paid AZ sales tax on the vehicle. Since you didn't (and it will be zero'd out on the bill of sale) they will access the NM use tax on the value of the Mini. Shouldn't be an issue. If Arizona reaches you, you can copy the receipt of payment, to the NM DOR, and they will be okay with it. Then AZ might consider crediting you the tax you paid to NM and bill you for the difference in tax. Arizona's TPT (sales tax) is 6.3% (then add the city's rate), the state use tax rate is 5.6% (there is no county use tax; also add city's rate; 7.7% in Scottsdale). New Mexico's use tax rate is 5.0% (last time I checked). So AZ may play hardball with you over the 0.6%. They may even want to include the city rate as well. Problem is, both states do not have the resources to track individual's who should pay use tax on items they purchase. BUT, they do pursue purchases of vehicles WITH AGGRESSION! The basis of Arizona's argument might be that the "first use" was made in Arizona, therefore the tax is due in Arizona. Hope this helps a little!

[pspsps]

Scottsdale MINI made me pay AZ sales tax even though I am an Alaska resident.

[CooperSAZ]

Did you come to Arizona to pick the vehicle up? Arizona's tax law is written as such that one must determine when the "first use" was made. If you picked the vehicle up in Scottsdale, that first use was made in Scottsdale, Arizona and subject to the Transaction Privilege Tax (sales tax). If you had it shipped to Alaska, the first use was made when you received it (in Alaska) and Arizona's TPT is not applicable. Hope this helps!