Hi guys, I'm looking on the net for an answer to this question, but haven't found the answer yet, so I wanted to ask you guys, as well..

I'm looking to buy a car in NY, new from a dealer (I'm on a project in NY for work, but actually live in Pittsburgh at the moment). I am moving to Chicago (permanently) in about 2 weeks, so I was wondering how I'd handle sales tax.. In NY, you only pay tax on the amount you pay for the new car, less the trade-in. So if I buy a $34000 and get $14000 for my trade, I only pay tax on 20000.

Here are my questions..
1) Would I pay NY taxes on the car when I purchase, or would I not pay taxes until I register it, which would happen in the state of IL?
2) If so, does IL have the same tax rule, that you only pay taxes on the diff between the new car and the trade-in?

Thanks in advance, folks..

 

1. Depends on the dealership. If they want you to pay, then you're gonna have to pay taxes there (NY)...Otherwise, if they let you, then you're gonna have to file a RUT-50 form in IL to pay taxes...


2. Yes, IL does have the tax break on the difference....but it'll probably be easier if you take care of everything in NY...As long as you pay your taxes and have proof of it, IL won't charge you taxes....only registration/plates...

 

What if there is a different tax rate? I paid 6% in Indiana, but I think taxes where I live would be 7%. As long as I paid tax in IN, am I okay, or do I owe that extra 1% here in IL when I register the car?

 

Yeah, I kind of wonder that, too..

See, even though I'm currently in NY for work,a nd will likely buy the car here, I actually live in PA, and can register my car in PA, before I move to Chicago if I want.
PA tax is 7%, and I think in Chicago it's 8.75%, based on what I've found. I hope they don't try to add the difference in IL, once I move there.

 

if you paid taxes elsewhere (different state), IL won't charge you the difference in %.

 

If if you didn't really register it there? I'm not talking about buying it in IN, living there for 6 mos+, and moving to IL, I'm talking about paying 6% sales tax in IN and then driving it home to IL to register here.

I'd like to believe what you are saying, but it sounds too good to be true.

 

Chris, I'm not expert, so if someone else tells you differently, you might listen to them instead.. But from everything I've found on-line, you basically pay sales tax when you register the car, no matter where you register it. So if you'll be living in IL, you'll be registering it there, and pay their sales tax. It's kind of f-ed up, in a way. If you drove to IN to buy a tv, you'd pay Indiana sales tax on the tv. But with cars, you pay tax where you live (or where you register, that is, assuming you register it in the state you live).