Sales Tax

[Tobes]

Quick question. When buying a car in MD to register it elsewhere, I assume you pay taxes in the place it will get registered. It seems that Florida has an exemption for military members stationed outside of Florida to not pay sales tax in Florida, but the caveat is that you would have to pay any taxes that might be due in the state the car was purchased. If Md does not collect taxes for cars not registered there, would that zero out the tax due or would that revert you back to paying MD taxes? It would not make sense to have said exemption if you just get jammed back at the source, does it? I have talked to a few folks that have successfully done this, but there seems to be a little bit of interpretation of the law left up to the folks involved. I honk it all hinges on the MD expectation for tax collection on vehicles taken out of state. I have searched and can't really find anything in writing, and the couple of state folks I have talked to don't seem to understand or comprehend the question.

[MrSmileyDC]

The dealer will collect tax based on the location the car will be registered.

[Tobes]

Originally Posted by BimmerGuyDC

The dealer will collect tax based on the location the car will be registered.

Yup. Agree. And now the dealer agrees as well. The problem I have now is that Florida insists the transaction is complete so I am out the $5000 sales tax that they got. Still going to push it up the line though. I would think that they can reimburse the money collected in error on their part. Here is to hope. So, for any other military members not stationed in Florida with a Florida residency, there is a military exemption to paying sales tax in Florida. Make sure you ask for it

[The Automotive Enthusiast]

Originally Posted by BimmerGuyDC

The dealer will collect tax based on the location the car will be registered.

Yup!

[Tobes]

Originally Posted by Mo@BMWofFairfax

Yup!

Wish I would have done a little more research on this earlier so I would not have to be requesting a refund from the department of revenue. Let's see how long that takes. Would have thought that either the dealer or the DMV would have caught it....but....yeah, right.

[M4chiavellif82]

where the car B registered @ senor?

[bb1857]

Originally Posted by Tobes

Wish I would have done a little more research on this earlier so I would not have to be requesting a refund from the department of revenue. Let's see how long that takes. Would have thought that either the dealer or the DMV would have caught it....but....yeah, right.

Dealer absolutely should have caught this....if this finance department didn't then the back office that deals directly with cutting checks should have. Hope you get your money back!

[Tobes]

Originally Posted by M4chiavellif82

where the car B registered @ senor?

Florida

[Tobes]

Originally Posted by bb1857

Dealer absolutely should have caught this....if this finance department didn't then the back office that deals directly with cutting checks should have. Hope you get your money back!

that is exactly what I told them. While it was an out of state registration, a friend purchasing a car at another local dealership is the reason I found out. Made sure to tell them so that the next guy does not have to do the same thing.

[Tobes]

Ordeal complete. Just got my check from the Florida Department of Revenue today refunding my sales tax paid in error. Just knocked a little more off the price of the car. What a nice surprise

[Alpinef82]

Put dealer tags = no tax

[Tobes]

Originally Posted by Alpinef82

Put dealer tags = no tax

Guess I'll need to figure out how that works. Guess you have to turn overs cars pretty quickly

[The Automotive Enthusiast]

Originally Posted by Tobes

Ordeal complete. Just got my check from the Florida Department of Revenue today refunding my sales tax paid in error. Just knocked a little more off the price of the car. What a nice surprise

Happy to hear it was taken care of.

[AlRoss0908]

As far as I know the tax collected based on a place where you purchased it

[OliveFox]

I don't get why don't you contact any local sellers and ask about your situation. Seriously, asking on forums for info about taxes is not the best option. If I were at your place, I would either ask the seller or contact accountants, or anyone else who knows how to handle questions like this. You can find an accountant who can advise you something, but I would double check this info anyway. I’m a risk-averse person, and I’m trying to avoid any problems concerning laws and taxes. Even for my small business, I usually consult competent people. Recently, I found this service https://taxfyle.com/business-incorporation-services and it helps me get in contact experts in this field.