I am going to look at a truck on Saturdy in Minnesota, the salemen claims that I dont pay sales tax until I license the vehicle with the state of Iowa, is this right, I thought this was done at the time of purchase, like you would with anything else? Also would you recommend not buying out of the state of Iowafor other reasons? Thanks in advance.
Any Iowa residents bought a vehicle outside the state?
- Thread starter UNIGuy4Cy
- Start date
That's really odd to me - I purchased a car in Illinois 3 months ago - I paid for the vehicle, tax, and registration (license) before I was able to take the car home.
The salesman is correct.
Personally, I'd pick states south if I was going out of state to buy a vehicle. But that's just me. :wink:
You pay the sales tax of 5% in Iowa when you register the vehicle in Iowa. In Polk County they take your word for what you paid for the vehicle. It's also now called a "registration fee" instead of a "sales tax" if I'm not mistaken. There are no drawbacks to purchasing out-of-state, I've done it numerous times.
Thanks guys. If I buy in Iowa, I pay sales tax at the point of sale, correct?
You will be given a 31 day permit to dirve you vehicle home. You will pay your taxes and reg. fee in Iowa. Taxes, lic and reg fees are always paid in the state in which you live. That is the law.
A reputable dealer will arrange for the registration and sales tax in your home state at the time of sale.
You can pay the tax either way, at the point of sale or when you register it with the county, it's your choice, regardless of what the dealer tells you.
I purchased a car at Holmes in Des Moines a couple years ago while I was living in Kansas City. I paid my sales tax at the Kansas DMV when I went to register the vehicle. What the sales guy is telling you is spot on, but it does seem like a big check when you have to pay it all at once as opposed to hiding it in your financing!
I purchased my last 5 vehichles in Nebraska. I paid my tax at when I registered at the courthouse in Harlan. Either way is fine pay now or later.
Kicking up this very old thread....sorry.
Anyway, I'm getting ready to order a Tesla Model 3, which I will have to pick up and pay for down in Kansas City. I want to find a way to avoid paying sales tax to the state of Iowa because of their treatment of Tesla and refusal to allow direct manufacturer sales. The state should not be rewarded after caving to the auto dealers' association - there needs to be some recourse while I'm being forced to drive out of state to get the vehicle I want.
Is there a way to pay the sales tax to Missouri/Kansas instead during purchase? I know some people down there. Maybe purchase the car in their name, register the vehicle there and then buy it off of them for $1 and come back to title/register it here in Iowa?
The state of Iowa needs to be challenged on this. I'm willing to pay a bit more to keep the money away from the locals here if that's what it takes.
Anyway, I'm getting ready to order a Tesla Model 3, which I will have to pick up and pay for down in Kansas City. I want to find a way to avoid paying sales tax to the state of Iowa because of their treatment of Tesla and refusal to allow direct manufacturer sales. The state should not be rewarded after caving to the auto dealers' association - there needs to be some recourse while I'm being forced to drive out of state to get the vehicle I want.
Is there a way to pay the sales tax to Missouri/Kansas instead during purchase? I know some people down there. Maybe purchase the car in their name, register the vehicle there and then buy it off of them for $1 and come back to title/register it here in Iowa?
The state of Iowa needs to be challenged on this. I'm willing to pay a bit more to keep the money away from the locals here if that's what it takes.
There is a way to avoid the Iowa sales tax. Move before you buy it, only way to avoid it.
I understand your desire to "stick it to the Man", but this is really extreme.
If you feel the state needs to be "challenged", get in the faces of your legislators that make the laws.
Not paying sales tax on a purchase isn't going to effect them one bit. Are you going to avoid paying income taxes too somehow?
Agreed. Is there any tax credits for the electric cars? Was thinking there was. Will he not accept them either since he is mad at the state?
*affect.
Like I said, looking for a way on this because of the state's treatment of a specific company, income taxes have nothing to do with this. It doesn't make sense for the state to be able to earn taxes on purchases that it does not allow to take place within it's borders.
The electric vehicle tax credits I believe are federal. I'll have to look into whether they are also there for state income taxes. Even if they are, they likely would not offset the sales tax cost.
Totally ridiculous that Iowa would demand sales tax on a purchase at a physical location located in another state.
