Question: West Virginia resident buying a car from a North Carolina dealer

[Blackberry Smoke]

I know the car will be subject to the WV 6% "sales" tax once it is titled here. North Carolina has a 3% "sales"/highway use tax that is collected anytime title to a car is transferred.

Question: Will the purchase be exempt from the 3% North Carolina tax since it will be titled "out of state"?

WV doesn't give you a credit for tax paid to another state so just wondering if the N.C. tax is not levied since the car is titled outside N.C.

Anyone know?

 

[atlkvb]

I know the car will be subject to the WV 6% "sales" tax once it is titled here. North Carolina has a 3% "sales"/highway use tax that is collected anytime title to a car is transferred.

Question: Will the purchase be exempt from the 3% North Carolina tax since it will be titled "out of state"?

WV doesn't give you a credit for tax paid to another state so just wondering if the N.C. tax is not levied since the car is titled outside N.C.

Anyone know?

No. The sales tax is assessed on the bill of sale. Title and registration fees are assessed when the car is actually registered at its domicile. Some States also assess a "transport fee" to get around folks trying to escape their ad valorem title and registration fees, so you might want to check what those are before you transport the vehicle.

Strategy: Purchase the vehicle but leave the title in the dealer's name. He pays lower tax and tag fees, you avoid paying ad valorem twice. Then arrange to have the dealer simply transfer title & vehicle to your address. You can then just register for your county or State tags and avoid paying additional ad valorem taxes and fees.

 

[MountaineerWV]

When I purchased a car this spring from Tennessee, I did not have to pay TN taxes on it. I paid taxes for my state once the 30-day temp tag went dead.

 

[atlkvb]

When I purchased a car this spring from Tennessee, I did not have to pay TN taxes on it. I paid taxes for my state once the 30-day temp tag went dead.

You avoided the ad valorem taxes assessed from a sale when you register after you bought it. If the dealer pays for the title, and doesn't register the car there are no ad valorem fees to assess.