Car Sales Tax Question

[GpaVader]

In MN, if I am buying a car and trading a car in I pay the sales tax on the difference. Example: New car is $50k, trade in is $20k so I pay sales tax on the difference, $30k. Do they do that here or do you have to pay the sales tax on the $50k.

Not currently in the market but could be soon and just thought I need to understand the costs.

[dewilson58]

yes

google is your friend

[Keefelane66]

You would pay sales tax on $30,000. If you have Florida registration sales tax is 7% I don't know the sales tax in Mn if it were 6% then you would owe Fl an additional 1% tax. I went threw this last year considering buying a vehicle in Ri.

[PugMom]

usually the dealership can help you along with this practice, & let you know what steps to take & when

[Altavia]

If you purchase a car out of state and then register it in Florida withing six months of purchase, you will owe Florida sales tax.

They give credit for state sales tax paid to other states. They do not give credit for local/city sales tax.

https://floridarevenue.com/Forms_library/current/gt800025.pdf

Motor Vehicle Registration and Taxes

Florida’s 6 percent use tax applies to and is due on motor vehicles brought into this state within 6 months from the date of purchase.

If the purchaser resides in a county that imposes a discretionary sales surtax, that tax will also apply. Use tax and discretionary sales surtax do not apply if a like tax equal to or greater than 6 percent has been lawfully imposed and paid to another state, territory of the United States, or District of Columbia.

It is presumed that a motor vehicle used in another state, territory of the United States, or District of Columbia for 6 months or longer before being brought into Florida was not purchased for use in Florida. To qualify for exemption from use tax, you must provide documents to prove that the vehicle was used outside Florida for 6 months or longer.

The full amount of use tax (6 percent) and applicable discretionary sales surtax are due on any motor vehicle imported from a foreign country into Florida. It does not matter if the motor vehicle was used in another country for a period of 6 months or more prior to the time it is brought into Florida. Florida does not recognize tax paid to another country when calculating the tax due. Tax is calculated on the value of the vehicle at the time it is brought into Florida, not on the original purchase price.

For information on registration costs, regulations, driver licenses, and minimum liability insurance coverage requirements, contact the Department of Highway Safety and Motor Vehicles. Visit their website at Florida Highway Safety and Motor Vehicles (https://www.flhsmv.gov/) or call 850-617-2000.

Payment of tax due on motor vehicle registrations and the purchase of Florida license tags may be handled at the local county tax collector’s office.

[laboutj]

What if I wanted to purchase a car in another state (Mass) and my trade-in is registered in FL? Understand that I would have to pay the difference in sales tax between the two states, but can I transfer the Florida plates to the new car? Usually you would have to bring it to the Florida registry where they inspect the VIN or the local dealer takes care of registering the vehicle.

[retiredguy123]

In MN, if I am buying a car and trading a car in I pay the sales tax on the difference. Example: New car is $50k, trade in is $20k so I pay sales tax on the difference, $30k. Do they do that here or do you have to pay the sales tax on the $50k.

Not currently in the market but could be soon and just thought I need to understand the costs.
In most counties in Florida, the sales tax would be 6 percent of $30,000 plus the county surtax of $50. So, for your example, the tax would be $1,850.

[jimkerr]

Yes, it works the same way here.

[Sherry8bal]

In MN, if I am buying a car and trading a car in I pay the sales tax on the difference. Example: New car is $50k, trade in is $20k so I pay sales tax on the difference, $30k. Do they do that here or do you have to pay the sales tax on the $50k.

Not currently in the market but could be soon and just thought I need to understand the costs.

I would say "stay in Minnesota"!!!!!!!!!!!!!!!!!

[dewilson58]

I would say "stay in Minnesota"!!!!!!!!!!!!!!!!!

:ohdear::ohdear:

[rsmurano]

Altavia-what you said is not true. I moved here with a 1 month old new car and I paid no tax on the car. When I bought this car in Georgia, I traded 2 cars in, got $25k cash back, along buying a $50k car, so I didn’t pay any sales tax on the car in Georgia either.
What you do have to do is show that you either paid sales tax on the car in the other state and that tax rate is equal or greater than what florida tax is and if it’s lower than Florida’s tax rate, you will have to make up the difference.

Before I did this deal before we moved, I called Florida’s dmv and they told me I wouldn’t have to pay any tax but would need to show my paperwork of the car purchase and when we registered the car here, it was exactly what they told me

[Kjbatl]

What if I wanted to purchase a car in another state (Mass) and my trade-in is registered in FL? Understand that I would have to pay the difference in sales tax between the two states, but can I transfer the Florida plates to the new car? Usually you would have to bring it to the Florida registry where they inspect the VIN or the local dealer takes care of registering the vehicle.

I have done this multiple times. It depends on the dealership practices and if they want to do the extra legwork. One dealer in West Virginia I did this with put together the paperwork from the sale, gave me a temp tag and then I had to take the package to the sumter county tax collector/dmv here in Florida where I paid the taxes and registration fees. The amount taxed was Sale price minus trade value. Another time the dealership handled everything including collecting the tax and submitting everything to Florida. They provided a temp tag while they did the process. A few weeks later I got a new Florida plate as they could not transfer the plate I currently had. I had to just go and surrender the old plate to the dmv. Just depends on the dealership and what they are comfortable doing. Both of these dealers were in small towns and not high volume stores, so they were easy to work with.

[laboutj]

I have done this multiple times. It depends on the dealership practices and if they want to do the extra legwork. One dealer in West Virginia I did this with put together the paperwork from the sale, gave me a temp tag and then I had to take the package to the sumter county tax collector/dmv here in Florida where I paid the taxes and registration fees. The amount taxed was Sale price minus trade value. Another time the dealership handled everything including collecting the tax and submitting everything to Florida. They provided a temp tag while they did the process. A few weeks later I got a new Florida plate as they could not transfer the plate I currently had. I had to just go and surrender the old plate to the dmv. Just depends on the dealership and what they are comfortable doing. Both of these dealers were in small towns and not high volume stores, so they were easy to work with.

Thank You! If I have to get a temporary tag that negates any dealer in Mass as the Mass DMV does not issue temporary plates. I'll check with a few dealers in RI or NH.

[villagetinker]

OP, I would call the Florida DMV to discuss the details of what you are trying to do, and any requirements that must be met.

[Herscheleen]

[B[/B]:ohdear::ohdear:
What! Why, BTW you are rarely helpful.

[thevillages2013]

[B[/B]
What! Why, BTW you are rarely helpful.

Why ? Because Sherry told the OP to stay in Minnesota! That’s why.:popcorn:

[dewilson58]

[B[/B]
What! Why, BTW you are rarely helpful.

Sheldon, did you look at the first response to this thread??

" :ohdear: "