Vehicle Registration & Taxes

[ChkHandleDn]

I bought a brand new truck in SC and paid not a penny more than $300 in taxes and it's been registered in SC and AZ. Both states charge a property tax on vehicles each year when you renew your registration, but since I am military and an out of state resident it's waived by showing them a copy of my LES saying I'm a TX resident.

Seriously dude quit calling people and look it up, in writing, online. It's easier and more accurate that way. State DMV sites are pretty in-depth.

I took a look at TXDOT's website and here's what it says w/ regards to sales tax for mil folks:

"Texas Law Requires:

-If you are a new Texas resident, you pay a one time use tax of $90

-If you are a resident of TX and have not previously paid a TX sales tax on the vehicle, in lieu of the $90, you pay either a 6.25 percent sales tax or the difference of what was previously paid to another state."

Link to the packet here: Mil Packet

So I guess even if I wait a few months to register the vehicle in TX after having it titled and registered in SC, I still get to pay the 6.25% less the $300 I pay SC; whereas NJ allows an exemption. Seems like NJ has the better deal w/ regards to that. Thanks for the help Viper!

[ViperStud]

I took a look at TXDOT's website and here's what it says w/ regards to sales tax for mil folks:

"Texas Law Requires:

-If you are a new Texas resident, you pay a one time use tax of $90

-If you are a resident of TX and have not previously paid a TX sales tax on the vehicle, in lieu of the $90, you pay either a 6.25 percent sales tax or the difference of what was previously paid to another state."

Link to the packet here: Mil Packet

So I guess even if I wait a few months to register the vehicle in TX after having it titled and registered in SC, I still get to pay the 6.25% less the $300 I pay SC; whereas NJ allows an exemption. Seems like NJ has the better deal w/ regards to that. Thanks for the help Viper!

That's kind of my whole point, no matter where you move on AD (99% of the time at least) you won't pay taxes if you are registering a car in a state that is not your state of residency. Buy it in SC, register it there and then move the registration to NJ if you want. If you ever move back to TX you have your license and insurance for the 2 out of 3 purposes so why ever register the car in TX?

The only reason you should ever register said vehicle in TX is if you feel some awkward obligation to fork over a grand or two to the state, which is stupid.

[Finance_Guy]

http://www.usatoday.com/money/perfi/columnist/block/2009-02-16-stimulus-home-car-buyers_N.htm

•New car buyers. Purchasers of new cars and trucks will be allowed to deduct sales or excise taxes. This is an above-the-line deduction, so you don't have to itemize to claim it.

The deduction is limited to sales tax on purchases of up to $49,500. The deduction phases out for single taxpayers with adjusted gross income of more than $125,000, and married taxpayers whose AGI exceeds $250,000.

The amount you save will depend on your state sales tax rate and the price of your car or truck. If your state imposes a 4% sales tax and your car costs $40,000, the deduction will reduce your adjusted gross income by $1,600, says tax publisher CCH.

The deduction is limited to car and truck purchases made between the date the bill becomes law and Dec. 31, says Tom Ochsenschlager, vice president of taxation for the American Institute of Certified Public Accountants. Congress "is trying to get people to buy cars right away," he says.

The bill also expands a tax break for people who take public transit to work. The bill allows employees to set aside up to $230 a month in pretax dollars to cover the cost of a bus, train or van pool, up from $120. Employees were already allowed to set aside up to $230 a month for parking. If the employer subsidizes public transportation, employees can receive up to $230 a month without paying taxes on the benefit.

[KWings06j]

Is this legal? My state of residence for tax purposes is OK. This is also where my car was registered. When I needed to renew the registration I was living in AL and had no street address to put on the form to renew it in OK. So when I went to renew it they turned down my registration for not having a state address. Can I renew my registration in a state that I no longer have a physical residence in? I ended up having to re-register my car in AL since OK took so long to respond my tags would have expired. However I'm moving to NV and they have an annual emissions test whereas AL and OK both don't have any inspection requirements. So I'd like to keep my registration in AL now that it's there without keeping a local address.

[magnetfreezer]

Is this legal? My state of residence for tax purposes is OK. This is also where my car was registered. When I needed to renew the registration I was living in AL and had no street address to put on the form to renew it in OK. So when I went to renew it they turned down my registration for not having a state address. Can I renew my registration in a state that I no longer have a physical residence in? I ended up having to re-register my car in AL since OK took so long to respond my tags would have expired. However I'm moving to NV and they have an annual emissions test whereas AL and OK both don't have any inspection requirements. So I'd like to keep my registration in AL now that it's there without keeping a local address.

For FL at least I was able to change the mailing address listed in the registration database to wherever I was going next. Many states will still be willing to take your money if you are out of state military but declare yourself a resident. Something else to be aware of - Californian diplomats have pressured several Navy bases located there that I know of to require emissions inspection to get a base decal since they didn't want all the out of state cars driving around exempt from CARB regulations. Might want to check with your gaining base to see if there is any kind of vehicle registration - if so, you may be stuck with the inspections anyway.

[MilitaryToFinance]

Reviving an old thread here. Currently my SLR is Ohio, my plates and registration are from Ohio as is my driver's license. However I'm looking at getting a motorcycle and need to get the motorcycle endorsement on my license. I won't be going back to Ohio any time soon so it would be much easier to change my license to Colorado(I have to renenw the license next month anyways since it's my birthday) and then get the motorcycle endorsement on the new Colorado license. It sounds like this should be fine to do and still keep my plates and registration from Ohio since 2 of the 3 are the same right? Any problems with having my car registered and with plates in Ohio and the motorcycle registered/plates in Colorado?

[Guest Hueypilot812]

You should be fine. The 2 out of 3 rule applies to each vehicle individually.

[Gravedigger]

Any problems with having my car registered and with plates in Ohio and the motorcycle registered/plates in Colorado?

Appleby, FYI, colorado springs is a little confused on how all of this works (ironic since there are 50,000 AD military in this city). I went to fill out the out of state affidavit, and was shown in writing that military members in Colorado must register their vehicles in this state within like 90 days or something. Driver's license does not have to change, but plates and registration must change. Obviously this is contrary to everywhere else, and what the JAG office tells you. I was told by several folks at the DMV and on the phone that if I didn't register my vehicles here, I was breaking the law.

Just something to keep in mind. I actually ended up registering both vehicles here just because it is about $50 cheaper than if I renewed my GA plates.

EDIT:

From the DMV site...

U.S. Military:

*

Colorado Driver License - Exemption Active duty U.S. military personnel and their spouses are exempt from obtaining a Colorado driver license when they have a valid driver license issued by another state. Military personnel on active duty in Colorado and who claim another state as their home state of residence shall register their vehicle(s) in Colorado.

*

Specific Ownership Tax - Exemption Active duty military personnel must be the owner or co-owner of the vehicle and complete form DR 2667 in order to obtain exemption from paying the Specific Ownership Tax. The affidavit must be completed each year at time of renewal or with the application for registration of a newly purchased vehicle. These individuals are in Colorado because they are required to be here by their branch of service

Link

Edited April 10, 2010 by Gravedigger

[Guest 130 ORF]

Old thread but good information.

Regarding insurance, If you insure through USAA they will know all the ins and outs of State requirements and will give you the proper documents for each state. I have Proof of insurance cards for both where I physically live and where the cars are registered.

If you are not insured through USAA go have your head examined, cause your paying too much and not getting great service.

Likewise, If you are thinking of keeping your car registered in CA or NJ have your head examined also since they are looking for every penny they can get and have high registration fees. If you do register your car, motorcycle, or even boat in a high property tax state while you are a resident of another state you can avoid paying the property tax portion of the bill by showing your LES with the other state listed as your legal residence. Saved me over $400 per year for my boat and about $150 on my motorcycle.

[MilitaryToFinance]

Appleby, FYI, colorado springs is a little confused on how all of this works (ironic since there are 50,000 AD military in this city). I went to fill out the out of state affidavit, and was shown in writing that military members in Colorado must register their vehicles in this state within like 90 days or something. Driver's license does not have to change, but plates and registration must change. Obviously this is contrary to everywhere else, and what the JAG office tells you. I was told by several folks at the DMV and on the phone that if I didn't register my vehicles here, I was breaking the law.

Just something to keep in mind. I actually ended up registering both vehicles here just because it is about $50 cheaper than if I renewed my GA plates.

EDIT:

From the DMV site...

U.S. Military:

*

Colorado Driver License - Exemption Active duty U.S. military personnel and their spouses are exempt from obtaining a Colorado driver license when they have a valid driver license issued by another state. Military personnel on active duty in Colorado and who claim another state as their home state of residence shall register their vehicle(s) in Colorado.

*

Specific Ownership Tax - Exemption Active duty military personnel must be the owner or co-owner of the vehicle and complete form DR 2667 in order to obtain exemption from paying the Specific Ownership Tax. The affidavit must be completed each year at time of renewal or with the application for registration of a newly purchased vehicle. These individuals are in Colorado because they are required to be here by their branch of service

Link

Damn I should have asked this a month ago before I wrote a $50 check to the Ohio DMV to register my plates. I'm so glad the JAG told me the exact OPPOSITE of that when I PCS'ed here. There must be a lot of people driving illegally here considering 80% of the cars on base have out of state license plates.

[Gravedigger]

Damn I should have asked this a month ago before I wrote a $50 check to the Ohio DMV to register my plates. I'm so glad the JAG told me the exact OPPOSITE of that when I PCS'ed here. There must be a lot of people driving illegally here considering 80% of the cars on base have out of state license plates.

Yeah the JAGs at Schriever tell you to go to the DMV to fill out an affidavit and you wont have to register in Colorado. Then when you get to the DMV they tell you the affidavit is for registering your vehicle in CO. Freaking lame either way.

By the way, if you go to the DMV right next to Pete, they have a military in uniform line that moves pretty quickly, so make sure you don't change before you go there. Also, you have to get a VIN verification done at the Pete visitors center, as well as bring a copy of your orders.

[Herk Driver]

Lived there for four years, never registered there, never had a problem.

[uhhello]

Just found out yesterday that GA allows 1 tax exempt vehicle per family for military members.

[AFLt]

Not quite the same scenario but figured it was close enough to not warrant another thread.

I'm currently TDY at Altus and my car just got totaled by the recent hail storm that just rolled through here. I'm looking to buy another car and save some money on taxes. I'm a resident of GA where the tax rate is 6% and I'm PCSing to MacDill (where I'll make FL my state of residence) in December where the tax rate is also 6%. The salesman today said that it's possible to register the car in OK while I'm TDY here for the next 6 months and pay OK sales tax on the car which is 3%. I found somewhere on the Florida DMV website that as long as the car was purchased greater than 6months ago (which it will work out by the time I get there) then you will not have to pay any additional taxes. But if it's less than 6 months from the purchase, you have to pay the difference (in this case 3%). Don't know if I should bite the bullet and pay all the taxes up front or go for the lower rate and save some bones. Anyone dealt with anything like this before?

[Slander]

Not quite the same scenario but figured it was close enough to not warrant another thread.

I'm currently TDY at Altus and my car just got totaled by the recent hail storm that just rolled through here. I'm looking to buy another car and save some money on taxes. I'm a resident of GA where the tax rate is 6% and I'm PCSing to MacDill (where I'll make FL my state of residence) in December where the tax rate is also 6%. The salesman today said that it's possible to register the car in OK while I'm TDY here for the next 6 months and pay OK sales tax on the car which is 3%. I found somewhere on the Florida DMV website that as long as the car was purchased greater than 6months ago (which it will work out by the time I get there) then you will not have to pay any additional taxes. But if it's less than 6 months from the purchase, you have to pay the difference (in this case 3%). Don't know if I should bite the bullet and pay all the taxes up front or go for the lower rate and save some bones. Anyone dealt with anything like this before?

Neither. Get yourself an address in Florida and become a state resident now. Buy the car in OK and register it in FL immediately. Wait 6 months before you drive it into FL (or don't get caught driving it in FL until after 6 months) and you avoid sales tax, "new wheels on the road fee" and registering the car in FL is like $80/year. I did this 2 years ago but it was slightly easier because I was already an FL resident. If you can't make yourself an FL resident then buy the car wherever and register it in OK and pay OK state taxes. But look in the DMV manuals there may be a military exception they don't advertise on their websites or in easy forms(like the one in FL).

[Jughead]

FSUBadger already answered the question you asked the same way I would have. Additionally:

I'm currently TDY at Altus and my car just got totaled by the recent hail storm that just rolled through here.

I'm sure this varies from commander to commander, budget to budget, etc.--but be sure to look into getting your deductible reimbursed via the JAG office. Similar thing happened when I was at Altus (I happened to be out of town for the weekend, so I wasn't directly affected), the JAG paid everyone's deductible from a "public relations" fund that, evidently, wings have available to help avoid negative perceptions for small claims-type issues. YMMV. OK, perceptions of Altus won't likely change, but you may not be out the money you thought you were....

[Guest Crew Report]

It's $25 a year to register in OK for military.

[ThreeHoler]

OK doesn't charge sales tax on a car. Just the three percent excise tax.

OK has no income tax for residents living out of state who are military and the aforementioned $25 registration for all cars (including brand new) is quite nice.

[disgruntledemployee]

OK doesn't charge sales tax on a car. Just the three percent excise tax.

OK has no income tax for residents living out of state who are military and the aforementioned $25 registration for all cars (including brand new) is quite nice.

But then you have Okie plates on your ride. On a plus side, I don't think they do front plates, so you can maintain your sleek front end look.

Out