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Avoiding Sales Tax in CO?

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Old 03-07-2011, 11:33 PM
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Default Avoiding Sales Tax in CO?

I can't seem to find a concrete answer on this.

From the research I've done, it appears that there is no requirement to title an atv in Colorado. For registration (ohv stickers), it seems that filling out a simple form will do that pretty quick. So, my question is: If I buy a quad in Wyoming, will they charge me sales tax since I live in Colorado (I think I read that there is no tax on atv's there anyway)? If they don't, and I don't need to title the vehicle in CO, would that in essence avoid paying the sales tax?

Yes, this is my first post as I'm looking forward to joining the sport......just trying to get the best deal I can and avoid giving Uncle Sam any more than I must. Thanks for your input!
 
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Old 03-08-2011, 08:43 AM
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Originally Posted by deerhunt799
I can't seem to find a concrete answer on this.

From the research I've done, it appears that there is no requirement to title an atv in Colorado. For registration (ohv stickers), it seems that filling out a simple form will do that pretty quick. So, my question is: If I buy a quad in Wyoming, will they charge me sales tax since I live in Colorado (I think I read that there is no tax on atv's there anyway)? If they don't, and I don't need to title the vehicle in CO, would that in essence avoid paying the sales tax?...

Welcome to the forums deerhunt.

Sales tax is a tax on what is sold in that area regardless of who is purchasing. If you buy from an individual legally (even though I"ve never seen it done) the seller is suppose to pay the tax on the sold amount. If you buy from dealer they will tack it on to the purchase price. Then again some states I don't think charge sales tax on them.

Here in OK we have to register/title newer quads. It's the excise tax that gets you. I think it's like 4.5 percent of sale price on new quads. It varies state to state but, if purchased out of state, even after paying out of state sales tax, we must pay OK excise tax when registering the ATV.

My mother is a tag agent and I called her to inquire about your question. She said this was the way it's normally handled (in OK) even though she was once told by a lady at the Oklahoma Tax Commission that the buyer shouldn't be charged sales tax if will be paying Excise tax in Oklahoma. That didn't make since to me nor her.

I dont know if any of this helps but, it's my .02.
 
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Old 03-08-2011, 08:43 AM
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Oh, and you may check DMV.org. They may have some info on there.
 
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Old 03-08-2011, 09:47 AM
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Koopa, sales tax is paid by the purchaser not the seller.
Trying to avoid paying sales tax by buying out of state is classified as tax evasion.
You may not have to title the atv but I do know my son was stationed in Colorado and he had to title his MX bike. SO you may have to title the atv and at that point you would pay the Colorado sales tax on the amount of purchase.
Maybe you can get the seller to write you a bill of sale for a lesser amount so you pay less tax.
I'm from the state of Washington where we have a sales tax, Oregon does not have sales tax.
In order to not pay sales tax when buying an atv in Oregon you need to be an Oregon resident or register the atv in Oregon at an Oregon address.
If you are a Washington resident and you do this, then you are caught riding in Washington, you will be issued a ticket and made to pay all sales due and any back back fees.
 
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Old 03-08-2011, 09:51 AM
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Originally Posted by Red400EXRod
Koopa, sales tax is paid by the purchaser not the seller.
My fault..My post was prior to coffee. You are exactly right. If you purchase from an individual and he does not pay taxes your are actually responsible for the sales tax. In fact your are actually (in alot of states) suppose to file and pay sales tax on all internet purchases.
 
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Old 03-08-2011, 10:02 AM
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No there is no title on any ORV in Co! If you want to avoid sales tax go to a state which does not have sales tax such as Montana, and not worry about it at all!
 
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Old 03-08-2011, 03:46 PM
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Originally Posted by DODGE57HEMI
No there is no title on any ORV in Co! If you want to avoid sales tax go to a state which does not have sales tax such as Montana, and not worry about it at all!
There you have it, right from the horses, errrr, Hemi's mouth!
 
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Old 03-08-2011, 09:40 PM
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Originally Posted by Red400EXRod
There you have it, right from the horses, errrr, Hemi's mouth!
Thanks! I do what I can!
 
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