EO saved me over $1100

paullud · May 4, 2011

I cannot find the post I originally got the information from but it was about being sales tax exempt when purchasing a vehicle for interstate commerce. I live in NY and went into the DMV to search through the forms to see if NY was one of the states that would allow this which I didn't think it would be given NY's policy of tax tax tax. I was suprised to find the loophole is available if you take delivery of the vehicle outside of NY and then drive the vehicle into NY under a for hire status with either a person or freight onboard. When you look at the requirements it is obvious some knucklehead in Albany pushed the law through for a friend or family member and the average person was not supposed to use it. It cost me about 90 minutes of my time since the clerk said I did not qualify and the supervisor had to call Albany and tried to argue and get me disqualified from the exemption. When you take into account our 9.75% sales tax in Oneida county on an $11,400 van I saved $1111.50.

purgoose10 · May 4, 2011

That's good to know. Should spread that around to the guys that live there. Sometime a little research will do the trick.

Lawrence · May 4, 2011

This is great news! Thanks for reporting back - hopefully others will read and pocket the cash!

paullud · May 5, 2011

I wish I would have remembered more about the post so I could pull up the original but I just figured there was no chance NY would have anything like it.

bobwg · May 11, 2011

Missouri also allows you to be exempt from sales tax when purchasing a vehicle used in transportation if you have some MC number but the lady at the license office didn t know what that was and so far I have not been able to find anything about it on the Missouri govt web site. I wonder if it could be a motor carrier number?????? that you get thru the state/fed??

Fkatz · May 11, 2011

Hi All,

The states that are exempt from sales tax or recieve a tax credit on there tax returns as sales tax paid to other states are as follows:
CT
IL
MO
NY,
NJ
Exemption #8

Vessel used for commercial fishing or as a party boat (more than six passengers and subject to annual inspection)
Commercial trucks, truck tractors, trailers or semi-trailers and vehicles used in combination with them which are registered in New Jersey and:
- have a GVWR in excess of 26,000 pounds as specified by the manufacturer; or
- are operated actively and exclusively for the carriage of interstate freight under a certificate or permit issued by the Interstate Commerce Commission; or
- are registered as farm vehicles under motor vehicle statute (N.J.S.A. 39:3–24, 25) and have a GVWR in excess of 18,000 pounds as specified by the manufacturer

Please check with your local sales tax Agencies within your state in reference to the above. Normally it would be for vehicles over 26,000 lbs.
Each state has it own laws as to crediting the sales tax paid to another state. IF you did not pay the sales tax in the state where you purchased it, then it is totally taxable in the state you register it.

Franklin Katz, RTP, ATP ,PA, PB,
Frank’s Tax and Business Service
120 York Rd
Kings Mountain, NC 28086-3151
(704) 739-4039
Fax: (704) 739-3934
e-mail: [email protected]

Providing Professional Accounting Services and Income Tax Preparation

Circular 230 Disclaimer – Any tax advice in this communication (including any attachments) is not intended or written to be used, and cannot be used, by any taxpayer for the purpose of (1) avoiding tax related penalties under the Internal Revenue Code or (2) promoting, marketing or recommending to another party any transaction or tax-related matters addressed herein.

bobwg · May 11, 2011

I did buy my Sprinter in another state and took it back to Missouri to register the lady at the license office said if I had a MC number I would not have to pay sales tax to Missouri for the purchase of the Sprinter but did not have the number and not sure what it is so ended up paying $300 sales tax to the state

paullud · May 11, 2011

In NY the exemption form I believe is DTF-802 or 803, there is no weight restrictions for it and it has the exemption for carrying passengers or freight. The DMV was able to confirm I was correct after awhile, I guess other states it is easier to deal with because they don't have the extra hoops to jump through.

paullud · May 11, 2011

bobwg said:
I did buy my Sprinter in another state and took it back to Missouri to register the lady at the license office said if I had a MC number I would not have to pay sales tax to Missouri for the purchase of the Sprinter but did not have the number and not sure what it is so ended up paying $300 sales tax to the state

You may be running into the same bumps I was where the clerks aren't really sure of what is required but they take a guess and hope it works. Even the supervisor that came out and tried to prove I was lying tried to tell me that paperwork was filled out incorrectly which I had to explain and go over things with her to show it was filled out correctly.

piattteam · May 6, 2012

To Fkatz. I have seen a couple post you responded to.
It is refreshing to see a professional person, such as yourself, who is willing to help others with free advice.
I salute you!

Wolfeman68 · May 7, 2012

Fkatz said:
Hi All,

The states that are exempt from sales tax or recieve a tax credit on there tax returns as sales tax paid to other states are as follows:
CT
IL
MO
NY,
NJ
Exemption #8

Vessel used for commercial fishing or as a party boat (more than six passengers and subject to annual inspection)

Commercial trucks, truck tractors, trailers or semi-trailers and vehicles used in combination with them which are registered in New Jersey and:

have a GVWR in excess of 26,000 pounds as specified by the manufacturer; or

are operated actively and exclusively for the carriage of interstate freight under a certificate or permit issued by the Interstate Commerce Commission; or

are registered as farm vehicles under motor vehicle statute (N.J.S.A. 39:3–24, 25) and have a GVWR in excess of 18,000 pounds as specified by the manufacturer

Please check with your local sales tax Agencies within your state in reference to the above. Normally it would be for vehicles over 26,000 lbs.
Each state has it own laws as to crediting the sales tax paid to another state. IF you did not pay the sales tax in the state where you purchased it, then it is totally taxable in the state you register it.

Franklin Katz, RTP, ATP ,PA, PB,
Frank’s Tax and Business Service
120 York Rd
Kings Mountain, NC 28086-3151
(704) 739-4039
Fax: (704) 739-3934
e-mail: [email protected]

Providing Professional Accounting Services and Income Tax Preparation

Circular 230 Disclaimer – Any tax advice in this communication (including any attachments) is not intended or written to be used, and cannot be used, by any taxpayer for the purpose of (1) avoiding tax related penalties under the Internal Revenue Code or (2) promoting, marketing or recommending to another party any transaction or tax-related matters addressed herein.