View Full Version : out of state vehicle purchase - how do taxes work on that?

09-04-2013, 04:57 PM
Just out of curiousity...if by chance I were looking at buying a car out of state, and delivered are taxes handled on the CO side at time of registration or that state's side. I wouldn't want to get double dipped.

J Kimmel
09-04-2013, 05:03 PM
if you are buying private party its like any other vehicle in state, you'll pay when you register. If its a dealer, it depends. Most will not collect anything. When I sell a car to an out of state customer I will collect their local tax only if I am financing the vehicle for them and remit to their appropriate county along with the lien. If I sell cash I don't collect anything.

You will pay taxes based on where you live vs where they are. If they collect taxes you should have something that shows it that you can take with you to the DMV :)

09-04-2013, 05:10 PM
thanks for the quick reply...

J Kimmel
09-04-2013, 05:11 PM
you bet, holler if you have more questions :)

09-04-2013, 05:29 PM
With an out of state title the DMV will most likely require a VIN inspection. SO make sure the title is signed correctly to prevent any additional hassle.

Also be aware that some states, Wyoming for example, do not issue or recognize salvage titles. So do a complete inspection on anything you buy.

09-04-2013, 05:48 PM
I bought vehicles in Missouri, Texas and Arizona and I was able to pay taxes when I registered. I was looking at a truck in California and according to their laws they would charge me their state tax at the time of sale (Dealer) and I would have to apply for a refund. Was enough for me to pass as I didn't want to deal with the hassle. Not sure how that works with a private party there

09-04-2013, 05:56 PM
Thanks Romer! TX...good to know. ;)

09-04-2013, 06:02 PM
Having to apply for a tax refund would run me out of CA too. Not that I need another reason to stay away from there.

09-04-2013, 06:07 PM
Thanks Romer! TX...good to know. ;)

One Texas dealer wanted to work the Colorado taxes for me and insisted so they are not liable. I insisted back and was ready to walk as their first run of figures where wrong. They first told me it was state law, nut I had bought my 80 there a few years earlier from a dealer and there was no issue.

09-04-2013, 09:07 PM
Taxes are a PITA especially in CO where we tax it based on your registration address AND where you purchased it. But no, a dealer does not have to collect taxes on a cash deal and I've seen many a deal where they were not collected on a financed deal. That is pretty grey, probably a no-no in the banks eyes. But it happens and the DMV collects them when plates are issued.

Caribou Sandstorm
09-05-2013, 12:07 AM
I did not pay taxes when I bought my LC from the dealer in Cali. However, they did the weirdest thing and delivered the car to the border and then I took possession.

I think they are all over the map and just depends on the dealer.

I paid taxes and registration in CO only.

09-05-2013, 08:55 AM
So maybe this is time for some sort of a confession? Or are you buying a new minivan...

09-05-2013, 09:00 AM
There may be a confession in the near future...nothing official yet. And good news, not another minivan. My Turbo subaru miiiight be going away for something uh, more "family friendly" :D and can be used off-highway if needed.