How to get around sales tax for your truck?

zenrider · May 19, 2011

Hey guys, I am sure some of you have purchased a truck without paying the sales tax when you get your title changed over in your state. How do you find out which states allow you to take the sale tax exemption?

I am buying a used truck from the Palmer trucks in Fort Wayne, IN. The salesman tells me that the truck will have a sales tax exemption. He did not explain how that would be. Plus I am quite sure my state of Colorado does not have any sales tax exemptions.
I know in some states like Mich. they have something called a "Rolling Stock" exemption.

One of the options I am looking into is changing my ID over to a state that does not have sales tax such as Oregon.

What do you guys suggest?

moose · May 19, 2011

You do not pay sells tax.
it's an interstate business.
you pay appropriate sells tax. (or whatever that word is, it's late)
you going to spend more money on diner tonight.
your state is only entitle for a portion of the sells tax that is the same as the portion of your expected business in your home state.
your IRP office will provide you with the needed forms to fill out on location.
good luck and congratulation .

davekc · May 19, 2011

You would have a apportioned plate.

zenrider · May 20, 2011

davekc said:
You would have a apportioned plate.

Yeah and to get that plate, do you have to transfer the title to the state you a resident in? When I inquired about that at my local DMV here in Colorado, they told me I would have to pay the state and local sales tax for the truck before getting the apportioned plates.

greg334 · May 20, 2011

Yep in colorado, you have to pay sales tax on the vehicle. There is no exemption.

Monty · May 20, 2011

In Ohio, one simply lists the DOT number on the door since it will be used in interstate commerce, it is exempt from sales tax. (See, there is SOMETHING good about the Buckeye state .... I'll search around for something else ...... don't hold yer breath waiting on me)

paullud · May 20, 2011

If you jump down to the tax topic section I posted a thread called EO saved me $1100. I had found an older thread on here about tax exemptions by accident and couldn't find it again. The tax guy listed the states that have the exemption and I mentioned some of the hoops you have to jump through in my state.

Posted with my Droid EO Forum App

greg334 · May 20, 2011

You have a couple options, one is incorporating in another state and putting the truck there.

Another is to pay the tax and than write it off.

Outside of that, unless you want to actually move, than it is those two options.

I guess the other thing that I'm known for is asking what does your accountant say about it?

nightcreacher · May 20, 2011

zenrider said:
Hey guys, I am sure some of you have purchased a truck without paying the sales tax when you get your title changed over in your state. How do you find out which states allow you to take the sale tax exemption?

I am buying a used truck from the Palmer trucks in Fort Wayne, IN. The salesman tells me that the truck will have a sales tax exemption. He did not explain how that would be. Plus I am quite sure my state of Colorado does not have any sales tax exemptions.
I know in some states like Mich. they have something called a "Rolling Stock" exemption.

One of the options I am looking into is changing my ID over to a state that does not have sales tax such as Oregon.

What do you guys suggest?

if you are leased to a company,they have a dot number and that exempts you from the sales tax on your truck
In ohio you can file exempt tax form at most places you do business with,and I have found if I fill the same form in most state its the same there.This doesnt work for truck and trailer washes.Living in Oregon to save sales tax woyuld be a bad thing doing expedite,thats not exactly a hot spot for expedite freight.

jjoerger · May 20, 2011

In Florida you will pay the sales tax when you get your tag and title.

purgoose10 · May 20, 2011

Well S.Carolina has a $300. cap on vehicle tax. Any size vehicle. That's sales tax. You have to pay sales tax if you want any kind of a tag.

greg334 · May 20, 2011

nightcreacher said:
if you are leased to a company,they have a dot number and that exempts you from the sales tax on your truck

Colorado doesn't have the exemption.

x06col · May 20, 2011

I'd move. Or, stay outa the trucking business.

zenrider · May 21, 2011

x06col said:
I'd move. Or, stay outa the trucking business.

Yep, Me and my wife are moving out of Colorado. Going back to VA, we still have a bank account and a car titled there in Virginia. I'm not sure if I will need to change my CDL over to Virginia. The VA motor carrier service tells me I can title and register the truck in VA using my Colorado CDL. As for the IRP, I will have to show proof of residency. I hope they will accept a bank statement with a Virgina P.O Box and a lease agreement. They said that preferred is a copy of a utility bill in my name.

greg334 · May 21, 2011

You will need to show your correct address on your CDL.

geo · May 21, 2011

in va you will pay sales tax and personal property tax to
when i had my fl60 and western star had ok states plates on it when they change rules had il irp
when i sold it mo wanted va title told them ok is all there going to get as to get a va title would have had to pay sales tax and personal property tax

cheri1122 · May 21, 2011

greg334 said:
You will need to show your correct address on your CDL.

Not always - when I moved, I updated my address online [with the License Bureau] and printed a copy to show any LEO who questioned the different address on my license.

greg334 · May 22, 2011

cheri1122 said:
Not always - when I moved, I updated my address online [with the License Bureau] and printed a copy to show any LEO who questioned the different address on my license.

You will if you register the truck for apportioned plates.

BobWolf · May 22, 2011

After owning and opperating A businesses and four years of trucking I learned

(1) Do Not Play Tax Guy or Attorney they know the laws I dont I pay them to do my taxes, and deal with any legal problems and it's money well spent. I would ask a professional as they will save you allot of pain.

(2) Typicaly "roling stock" is basicly inventorry for sale and has its own tax rules. Remember, they are sales men not accountants or lawyers. you usualy have to pay sales tax to your home state anyway because you own it.

(3) If you happen to be making money even if your breaking even taxes and intrest are usualy good write offs anyway.

I considered pappering my truck in annother state when my insurance and registration were due a couple of months ago however when looked into how to do it LEAGALY I found it to be more expensive, and time consuming than just paying the taxes, registration, and insurance increases for New York State.

Lets face it....
One way or annother the state and federal government will get the money out of you.

moose · May 22, 2011

BobWolf said:
(3) If you happen to be making money even if your breaking even taxes and intrest are usualy good write offs anyway.

Lets face it....
One way or annother the state and federal government will get the money out of you.

Why be in business with the Gov. ?
they only going to pay you back ,what? 18,27, maybe 30 Cents on the $ ?
be in business with me,
i can PM you my bank info.
just send me a check for 2,000$ ,
i'll give ya a better rate then the gov. !
i'll pay you back a whooping 1,500$ . !!!
I'll even be happy to pay taxes on that excessive income ...