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      05-08-2020, 05:09 PM   #98
Belugs
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Drives: 2018 M550i, 2012 528i
Join Date: Jun 2019
Location: TX

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Originally Posted by Da808dad View Post
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Originally Posted by Vic55 View Post
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Originally Posted by Da808dad View Post
Don't you live in Washington State? What if you were to go down to Oregon and lease/purchase a car? Don't know how the usage tax is different there but I would think sales tax (lack of in Oregon) would make a huge difference?
General rule of thumb via auto retail installment contracts and lease agreements is that taxation is based on residence not where point of sale occurs. A dealer that is out of state should not not charge tax because it might not be a reciprocal state (where they would collect and remit to the other state) but instead they do a one way MSO and let the buyer pay tax when he/she registers the car in their state. This is for retail contracts.

So Dean (Limey) in your question could go to Oregon but he would still pay tax on the payment based on his garage address via the lease agreement.
I guess the guy who bought the MB and my friend heard arguing with Matson either got totally screwed one way or another, had no idea what he was talking about, or was trying to pull a fast one.

I wonder if this out of state tax rule only applies to cars or if other stuff such as boats also. I know when I bought my boat in Vegas and had it shipped to Hawaii, the dealer I bought it from in Vegas gave me the option to pay the tax on it upfront based on Nevada tax rate or when I register it in Hawaii. They actually told me it was better to pay the tax on it in Hawaii since Hawaii tax rate is like half of Nevada's. However, boats here in Hawaii aren't registered to the DMV (only the trailer is) and so there was no one to pay the tax to here in Hawaii as the department I register the boat only charges a set $115 fee ($60 for the boat and $55 for ramp usage).
I believe it applies to other property other than auto. Here is the link if you want to look into it. May have to copy and paste in your browser.

https://texreg.sos.state.tx.us/public/readtac$ext.TacPage?sl=R&app=9&p_dir=&p_rloc=&p_tloc=&p_p loc=&pg=1&p_tac=&ti=34&pt=1&ch=3&rl=294
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