Double taxation

[Peter]

How can you bring a new car from the USA to Canada without paying state taxes. If you are buying it from the dealer with a tax free state address like Delaware with your own name, would Canada customs accept the same person as an owner for a Canadian address? While the dealer sells a used car to a Canadian address it does not sell a new car to Canada. What is the best way to handle it? Also, does the dealer have to pay state taxes if he makes a new car to a used one? The state the car is in is Michigan.

[Fosters]

Not sure about the canada thing, but when I purchased the MM, I got it from Iowa, a no tax state, but paid taxes when I registered it in MN. I believe that even if it was bought in a taxed state, I would simply pay the taxes in MN, and not in that particular state.

[Black Dynamite]

Well, for Americans, if you purchase a car in another state, you don't pay the taxes of that state. You have to pay taxes where you are registering it. The same is true of a Canadian coming into the US to purchase a car. There are however some forms required by the Canadian government regarding bringing a grey market car into Canada that you have to have with you as the dealer in the US will not be providing them. I'd reccomend you contact the border authorities to find out what is required to bring it home.

[Black&Gifted]

The issue is sales tax, not state tax (which generally refers to an income tax). Sales tax rules are different for dealers and private sellers, so it depends on the facts.

[Fosters]

The issue is sales tax, not state tax (which generally refers to an income tax). Sales tax rules are different for dealers and private sellers, so it depends on the facts.

Sales tax is what we're all talking about. In MN at the very least you pay sales tax when you register it, regardless of whom or where you bought it from. You have to declare how much $ you bought it for, and they tell you how much you need to pay.

[Pops]

If I remember right you can get an in Transit sticker and not pay the tax when it goes out of state here. You should be able to look on the Secretary of the State site and see. Bet you do not have to pay the state sales tax on it.

[hotford]

well when purchasing a car in Michigan no need to pay the state tax as long as you don't plate it,just export it to the customs depot in Mississauga,you then need to pay the hst on the converted amount,the flat bed from Michigan to Mississauga depot will run you 500.00
at least this what my boss did when he purchased his shelby.

[kernie]

This doesn't have much to do with the questions asked but get this, in Ontario if two guys decide to swap their $12,000 vehicles strait up you still both have to pay the 13% HST. No money changes hands but the government collects $1,560 from each person, that's just wrong.

:beer:

[Black Dynamite]

This doesn't have much to do with the questions asked but get this, in Ontario if two guys decide to swap their $12,000 vehicles strait up you still both have to pay the 13% HST. No money changes hands but the government collects $1,560 from each person, that's just wrong.

:beer:

Technically, there were two $12k transactions even though no money was exchanged.

[hotford]

This doesn't have much to do with the questions asked but get this, in Ontario if two guys decide to swap their $12,000 vehicles strait up you still both have to pay the 13% HST. No money changes hands but the government collects $1,560 from each person, that's just wrong.

:beer:
I think hes trying to avoid the tax on the car...
when he registers it in Canada he"ll have to pay the HST no matter what
he will need proof of payment and the totall amount paid for.

[Black&Gifted]

Sales tax is what we're all talking about.

Understood and thanks. The OP referred to the taxes as "state tax" multiple times, which is why I made the distinction. When I think of a "state tax," I think of a state income tax...not a sales tax.



In MN at the very least you pay sales tax when you register it, regardless of whom or where you bought it from. You have to declare how much $ you bought it for, and they tell you how much you need to pay.

Correct, but the rules on procedures are different for dealers/merchants/business owners than they are for private sellers, so it depends on the facts regardless of the state you live in.

[Mercguy04]

There is no Sales tax in Oregon as well. You have to go through a riggious check to
prove you are from Oregon. I was born there and my sister still live there. But I pay
in NJ for sure. I suppose she could buy the car, but it is still in her name not mine.
You Play you pay.

[Black&Gifted]

I suppose she could buy the car, but it is still in her name not mine.


then have her transfer title to you 6 months later as a gift. Most states have an exception from sales tax if the property being registered is a "gift."