Anybody from out of state ever buy a car from a Maryland dealership?

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phositadc
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Anybody from out of state ever buy a car from a Maryland dealership?

Post by phositadc »

Maryland charges a 6% car tax. Does anybody know if a Maryland dealer can omit that tax if the buyer can prove they are an out-of-state buyer (e.g., driver's license from a different state)? Or are MD dealerships required to collect the tax regardless of where the buyer lives? I'm in NC.

NC only charges a 3% car tax. If I pay the tax in Maryland, NC will give me a credit. But still, I'd be paying 6% instead of 3% if Maryland dealers cannot omit the tax for out-of-state buyers.

Haven't been able to find the answer online. I could and probably will call an MD dealership, but I'd prefer to independently verify anyways.
furwut
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Re: Anybody from out of state ever buy a car from a Maryland dealership?

Post by furwut »

I would suggest contacting the MVA - Maryland Vehicle Administration. The tax is for registering and titling a car in Maryland (EDIT - which you are not going to do). Maybe the dealer collects it on behalf of Maryland if they handle those details for the customer?

But, in your case, I’d hope you could just get temporary tags from the dealer.

P.S, I once brought a car into Maryland, paid the tax, took it out of state when I moved, returned and had to prove I had paid the tax before to avoid a double charge.
260chrisb
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Re: Anybody from out of state ever buy a car from a Maryland dealership?

Post by 260chrisb »

I did once buy a car in MD and live in Indiana. If you're going to get the credit from your state of residence then it doesn't really matter but the dealer may be able to withhold 3% instead of 6%. My purchase was 10 years ago and if memory serves the dealer in question may not have withheld taxes but I'm having a hard time remembering exactly how it went. I'd ask about the 3% and see what they do.
Elysium
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Re: Anybody from out of state ever buy a car from a Maryland dealership?

Post by Elysium »

Simple answer is no, you do not have to pay MD taxes if you are out of state buyer. You will pay taxes for the state of your residence. I bought a car last year.
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mmmodem
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Re: Anybody from out of state ever buy a car from a Maryland dealership?

Post by mmmodem »

Elysium wrote: Wed Oct 21, 2020 7:12 am Simple answer is no, you do not have to pay MD taxes if you are out of state buyer. You will pay taxes for the state of your residence. I bought a car last year.
+1
Taxes are applied based on tax rate of the zip code of your vehicle registration address.
Brain
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Re: Anybody from out of state ever buy a car from a Maryland dealership?

Post by Brain »

furwut wrote: Wed Oct 21, 2020 6:23 am P.S, I once brought a car into Maryland, paid the tax, took it out of state when I moved, returned and had to prove I had paid the tax before to avoid a double charge.
It's worse for Maryland residents who buy a car out of state. You have the pay the difference in sales tax between the purchasing state's sales tax and the MD sales tax. So if you buy it in a low tax state with, say, a 2% tax, then you have to pay 4% to MD when registering it.

https://www.marylandtaxes.gov/individua ... e-faqs.php
Jack FFR1846
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Re: Anybody from out of state ever buy a car from a Maryland dealership?

Post by Jack FFR1846 »

Brain wrote: Wed Oct 21, 2020 2:02 pm
It's worse for Maryland residents who buy a car out of state. You have the pay the difference in sales tax between the purchasing state's sales tax and the MD sales tax. So if you buy it in a low tax state with, say, a 2% tax, then you have to pay 4% to MD when registering it.

https://www.marylandtaxes.gov/individua ... e-faqs.php
Doesn't every state do this? I know Mass certainly does.

I had a manager years ago who had recently joined our group in our Mass facility. He thought he was being smart, buying a used Mercedes in New Hampshire, where there's no sales tax. Of course when he went to register it in Mass, he first had to pay the sales tax. Not only that, he had zero lemon law protection. Mass have very strong lemon laws which include used cars and even private sales.
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rich126
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Re: Anybody from out of state ever buy a car from a Maryland dealership?

Post by rich126 »

Jack FFR1846 wrote: Wed Oct 21, 2020 2:08 pm
Brain wrote: Wed Oct 21, 2020 2:02 pm
It's worse for Maryland residents who buy a car out of state. You have the pay the difference in sales tax between the purchasing state's sales tax and the MD sales tax. So if you buy it in a low tax state with, say, a 2% tax, then you have to pay 4% to MD when registering it.

https://www.marylandtaxes.gov/individua ... e-faqs.php
Doesn't every state do this? I know Mass certainly does.

I had a manager years ago who had recently joined our group in our Mass facility. He thought he was being smart, buying a used Mercedes in New Hampshire, where there's no sales tax. Of course when he went to register it in Mass, he first had to pay the sales tax. Not only that, he had zero lemon law protection. Mass have very strong lemon laws which include used cars and even private sales.
Maryland is pretty bad with this stuff. I grew up there and I can recall workers moving from out of state complaining about this stuff. Compared to a state like AZ which is pretty lax, or at least cheaper.
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