Hi, I am looking for a new car but will be moving to Kentucky in July. I will have to pay sales tax in Kansas. Will I have to pay sales tax again in Kentucky when I register the car. Is it just better to wait until I move to buy a car. Thank you for your help.
Question about car sales tax and moving
- Thread starter FirstNissan
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wait!!!
Are you sure you'll have to pay sales tax twice? If you were a resident of KS and paid sales tax while living there - you should be ok. Usually these laws are to keep a resident from buying out of state to avoid sales tax. Of course all of this is state dependent so it needs research.
You can get burned by a "six month" rule! Check, check, check.
Basically you're (often) exempt from tax in your new state if you were registered in your old state at least six months. I would wait for the move if at all possible. Or, if you can sign a lease ahead of time or otherwise prove (future) domicility to KY, make a trip up there ahead of time to get plates. You would need an address to give the dealer for title purposes, and if you're financing and need pay stubs this can be a mess.
A domicile is where you INTEND to live permanently, so if KY will be your thing, there's your excuse.
Basically you're (often) exempt from tax in your new state if you were registered in your old state at least six months. I would wait for the move if at all possible. Or, if you can sign a lease ahead of time or otherwise prove (future) domicility to KY, make a trip up there ahead of time to get plates. You would need an address to give the dealer for title purposes, and if you're financing and need pay stubs this can be a mess.
A domicile is where you INTEND to live permanently, so if KY will be your thing, there's your excuse.
If you buy a Volvo you will get a free trip to Sweden, they will ship it to you, and then you pay insurance for a used brand new car. Total saving 7%.
Buy it in a state that does not have sales tax: http://en.wikipedia.org/wiki/Sales_taxes_in_the_United_States#Taxable_sales
Buy it in a state that does not have sales tax: http://en.wikipedia.org/wiki/Sales_taxes_in_the_United_States#Taxable_sales
not exactly the same situation, but when i bought my old neon from my Brother in TX( Flew Down, drove it home) the only tax I paid was here in Ohio when i went to title it. ( I made sure to check with the title dept/DMV in both states just to be 100% absolutely sure)
I would call the county clerk in the city you are moving to ask. I live in northern KY close to Ohio and I talk to people all the time who choose to live in Ohio just because of the property tax rules in KY on vehicles.
I agree with 901Memphis.
From what I can tell, Kentucky does not have a sales tax on motor vehicles, however they have a motor vehicle use tax (6%) instead. I could not easily discern whether your sales tax in Kansas would offset the MVU. The FAQs address boats and trailers but not motor vehicles. It may be best if you just buy the vehicle in Kentucky when you have a Kentucky address. Their 6% MVU is actually less than what you would pay in Kansas, when the state and local parts of the Kansas sales tax is considered.
From what I can tell, Kentucky does not have a sales tax on motor vehicles, however they have a motor vehicle use tax (6%) instead. I could not easily discern whether your sales tax in Kansas would offset the MVU. The FAQs address boats and trailers but not motor vehicles. It may be best if you just buy the vehicle in Kentucky when you have a Kentucky address. Their 6% MVU is actually less than what you would pay in Kansas, when the state and local parts of the Kansas sales tax is considered.
I would read this page. Sounds like you need to check if Kansas has similar tax rate and Cr dit for new resident registration:
http://revenue.ky.gov/individual/mvutmethods.htm
http://revenue.ky.gov/individual/mvutmethods.htm
Thank you all for your help. I will call the Kentucky DMV on Monday
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