taxes on out of state vehicle purchases

[shaferz]

Let me explain:

We just traded in our 07 Grand Prix GXP for a 2003 Ford Excursion. It ended up being an equal trade at a licensed dealer in Indiana.

I am traveling for work right now so my 8 month pregnant wife is trying to get the paperwork done so its done by the time I get home.

She called a DMV today to find out what we were going to owe, and the lady she talked to acted like we had to pay tax on the full 'purchase price' of the Excursion, independant of what trade in value was.

I'm doing research online real quick and found that a RUT-25 form figured taxes based on sales price of the new vehicle MINUS the trade in value. Our trade in value of the GXP was actually slightly more than the sales price of the Excursion, and the bill of sale clearly shows that. From what I understand, the RUT-25 form calculations would show zero taxes owed. Now... I dont have the bill of sale in front of me, nor do I have an actual RUT-25 form in front of me - i'm just basing off of screen shots that I am seeing around the internet - but is there anybody who can shed some light on this before I have to go to the DMV next week and sound like an asshole who is right, or the fucking idiot who was wrong?

I'm thinking that maybe the lady at the DMV did not hear or did not understand when my wife told her that the trade in value was the same or slightly more than the purchase price of the new vehicle.

HALP!

Click to read more...

 

[Frank Dukes]

all based on state. I just did this here in IL and paid no sales tax. my trade in was worth 14k and i bought a truck for 12. 0 sales tax paid due to already having paid sales tax on the trade in prior

 

[Riski]

I thought you pay sales tax on the vehicle no matter what.....

 

[Frank Dukes]

state dependant. i was surprised to find this out as well.. saved me a chunk of change i already had relegated myself to spending.

 

[Eagle]

I'm guessing IL still wants to get their tax $ out of that sale and purchase. Just sayin.

 

[Frank Dukes]

Taxing the trade-in:
In many states, if you trade in your old car you can get a nice tax break. Here's how it works. If there is a "Y" in the "Trade-In Sales Tax" column of your state, you are only taxed on the difference between the new car and your trade-in. So, if your new car costs $20,000 and you are getting $7,000 for your trade-in, you will be taxed on the difference, or $13,000. If sales tax in your state is 8 percent, this will save you $560. If there is an "N" in the column, it means that you will pay tax on the full amount of your new car purchase and the trade-in has no bearing on the sales tax you are charged.

http://www.edmunds.com/car-buying/what-fees-should-you-pay.html

 

[Riski]

Yes here in IL.....It goes buy the vehicle year and make.....set amount.....bike/cars all the same

 

[EmersonHart13]

That laws are stupid so read up. My brother had to pay tax on what they thought the vehicle was worth instead of sale price because he got it so cheap. Fucking BS that popped him up a bracket.

 

[shaferz]

riski - have you ever traded anything in? rofl riski probably points at what he wants and leaves a blank check

 

[Riski]

I traded in before, but no blank checks anywhere.....

IL is all about gettin as much cash outta us tax payers no matter what....

Now we pay on what they think the value is, not what you paid....cause you will get people sayin I bought it for a 1.00 from Uncle Ed

 

[Frank Dukes]

i had no issue.. the truck i bought actually does book out to more than the xterra i traded in.. so i dont see how this could be. but what do i know?

 

[shaferz]

http://www.revenue.state.il.us/Publications/Sales/STS76.PDF

RUT-25 form is there. Looks to me that this form is specifically for vehicles purchased out of state that need to be registered in-state.

 

[shaferz]

Please - is there anybody who has actual experience here instead of just conjecture?

I posted the link to the form and everybody quit replying. I thought we had a few people on here who worked at dealerships?

 

[SinisterSHO]

When I registered my car from Missouri I just paid normal taxes. Under like 15k it goes by year, over 15k it goes by the amount. But I purchased the car, it wasn't a trade.

 

[Fish]

When I bought my GS in MI, I had my plates/title/other bs done at the currency exchange. All said and done was probably $180ish. Tax included.

Id go that route.

 

[shaferz]

I'm not talking about straight out purchases - I know that sales tax would be due on that.

I'm talking about trading in a car in a different state and bringing it to Illinois. Has anyone specifically done that?

 

[PANDA]

I'm sure the dealer does this kinda stuff daily. They have no info for you?

 

[32vMonte]

This doesnt have much to do with a trade in type of deal but I bought a car private sale from ILL and I live and registered the car in IN. The BMV wanted a copy of my loan contract to see exactly how much I payed for it and tax me on the 12k I actually payed for it and I said hell no I already got the loan for 12K flat.

Told them I payed 500 bucks for a 04 GTO and had the seller fill out a BMV approved bill of sale saying that he sold it to me for $500.

Fuck paying 2-3k in taxes on a third owner vehicle that has had taxes payed on it twice already it makes no sense.


Also when I bought my monte from PA I payed $2,500 and the BMV in IN stopped accepting titles and bill of sales that say gift AKA pay no taxes. So i said I payed $50 for it haha.

We get taxed enough as it is fuck them

 

[Fish]

I'm not talking about straight out purchases - I know that sales tax would be due on that.

I'm talking about trading in a car in a different state and bringing it to Illinois. Has anyone specifically done that?

I didnt straight out buy it. I didnt buy it from a dealer, but it wasnt cash either.

Dealer buying out of state, cant help. Sorry.

 

[EmersonHart13]

I bought mine out of state from a dealer but it has been a few years. I think I paid tax on the whole purchase though.... Hrrrmmmm

 

[THEHKP7M13]

This doesnt have much to do with a trade in type of deal but I bought a car private sale from ILL and I live and registered the car in IN. The BMV wanted a copy of my loan contract to see exactly how much I payed for it and tax me on the 12k I actually payed for it and I said hell no I already got the loan for 12K flat.

Told them I payed 500 bucks for a 04 GTO and had the seller fill out a BMV approved bill of sale saying that he sold it to me for $500.

Fuck paying 2-3k in taxes on a third owner vehicle that has had taxes payed on it twice already it makes no sense.


Also when I bought my monte from PA I payed $2,500 and the BMV in IN stopped accepting titles and bill of sales that say gift AKA pay no taxes. So i said I payed $50 for it haha.

We get taxed enough as it is fuck them

 

[THEHKP7M13]

I got FOCKED on my Ranger. I bought it in Iowa from a dealer. So, since it was bought from a dealer I had to pay full sales tax on it. If I would have known that I would have made a bill of sale between me and a freind first. This state is out of control. No wonder the only people staying are illegal immigrants and welfare recipients.

 

[SRT41320]

FIRST OFF...
go to a currency exchange - DO NOT go through the DMV...they are DUMB!!!!

also make sure you have a bill of sale for a price of $14,999 or less unless you actually paid less then that...either way keep it under $15k otherwise taxes will tripple!!

sorry...but illinois DOES NOT care about trade in value last i checked...or donation value, or anything else - the only time that BS matters is when you file your taxes at the end of the year

i did this when i got my old TBSS out of MO about a year ago...GL

 

[Krang]

Got my vette out of state in 2008, had to pay a percentage based off of what I paid for the vehicle. I want to say it was 7.5%. They didn't ask to see a bill of sale or anything.This was at the Aurora DMV.

Motorcycle: Bought used, was like a 25 dollar fee for the tax on that.