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I went to a dealer in another state today to look at a 2004 Grizzly since they advertise that you don't have to pay sales tax if you are from another state. Since my state charges 7% and the other state is only 35 miles away, it sounds like a good way to save a few bucks. The dealer then tells me that if my state audits his books and finds out that I didn't pay the tax, they may send me a bill later plus a penalty. However, if I go ahead and pay taxes in his state,(which is 4%), my state can't turn around and bill me later.He says it's my call either way. Can anyone confirm the part about my state actually being able to bill me for something I bought in another state or is the dealer just trying to squeeze a few more dollars from me?
I purchased a ATV from Mississippi last year (no taxes) but a last month I got a notice that I owed taxes on it in Tennessee now, plus interest and penalties... not sure how, but I think the dealer notified the state of Mississippi and they informed Tennessee about the sale... so now I'm stuck having to pay taxes on it... damn tax man, cant win for loosing...
Don't try to cheat the system if you aren't willing to face the music. Most states require you to pay taxes on anything that you buy out of state. This includes stuff you buy on the internet. Now, they expect you to get the proper form for your state and fill it out yourself then send it in. Um...yeah. No thanks! I have never seen someone actually do this but here in NV and other states it is an actual law!