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08-08-2014, 07:00 PM
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#1
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Senior Member
Join Date: Aug 2012
Location: Kalamazoo
Posts: 769
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Hypothetical Question
Let's say I reside in Arizona. I decide to purchase an RV at the RV connection in Middlebury Indiana. I travel from Arizona to Indiana in my tow vehicle, purchase the RV and tow it back to Arizona. How are the sales taxes handled? Is there a temporary registration issued during transit? Do I pay the taxes again in Arizona when I register it there?
If anyone has done this process before, could you let me know how it went and would you do it again?
Doesn't have to be Arizona, could be any state but Arizona would be helpful.
Thanks
__________________
2019 Jayco 26BHX Eagle HTX Fifth Wheel
2018 Chevrolet Silverado Double Cab 2500HD 4X4 6.0L 4.10 axle
Reese 16K Round Tube Slider Hitch
HD Trailering Package with Integrated Brake Controller
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08-08-2014, 07:22 PM
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#2
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Senior Member
Join Date: Sep 2010
Location: Scottsdale, AZ
Posts: 795
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Here is some info you might find helpful.
All states are mandated to give credit for a legally imposed sales tax paid to one state against another state's sales/use tax. This is due to the United States Commerce Clause, which is a federal statute. Thus, if your customer lives in another state, that state should allow the amount of sales tax paid to Indiana as a credit against the amount of sales or use tax due. Your customer may have to pay an additional amount if their home state has a higher tax rate than Indiana or if their state has any local (non-state) imposed taxes. Example: California currently has a state rate of 7.25% plus local taxes. If Indiana sales tax of 7% is paid at time of purchase your customer will only have to pay California the extra .25% state sales tax plus any local taxes due in California. They will get credit for the 7% paid to Indiana, thus no double-taxation. (see warning below)
Warning - A few states impose a tax different from a sales/use tax, often termed an excise tax. Because the tax is not the same type tax as Indiana’s sales tax, these states may not allow a credit for a sales tax paid in Indiana against their tax. A few states might have specific tax statutes that do not allow for a credit for a sales tax paid to another state. States known to the Indiana Department of Revenue that may not allow a credit for a sales tax paid to Indiana are Arkansas, Maryland, Mississippi, Oklahoma, and West Virginia. These states may impose additional taxes upon registration and/or titling in their state without allowing a credit for the sales tax paid to Indiana. This list may not be all-inclusive. It is provided solely to alert dealers and customers of the existence of these type situations.
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08-08-2014, 07:42 PM
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#3
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Member
Join Date: Jul 2014
Location: Vail
Posts: 55
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Sounds like you figured out that Arizona is not the place to get a great deal on a RV :-)
I recently went through this process, as I reside in Arizona, and I purchased a travel trailer in Michigan. The dealer collected 6% sales tax. Arizona tax is 6.9%, so I had to pay the difference of 0.9% when I registered the trailer in Arizona.
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08-08-2014, 08:18 PM
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#4
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Senior Member
Join Date: Sep 2010
Location: Near St Louis
Posts: 474
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I live in Missouri and have purchased 2 new units through RVDirect in Des Moines IA, and we just bought our 2014 through RV Connection. On both of the units from RVDirect, they mailed all my state registration documents and required me to bring license plates and proof of insurance and registration when I picked it up. However, RV Connection only required proof of insurance and they provided me with a temp plate along with everything I needed to register and license it when I got home.
Hope that helps.
Jr
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08-08-2014, 09:34 PM
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#5
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Senior Member
Join Date: Aug 2012
Location: Kalamazoo
Posts: 769
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Quote:
Originally Posted by slinger
Sounds like you figured out that Arizona is not the place to get a great deal on a RV
I recently went through this process, as I reside in Arizona, and I purchased a travel trailer in Michigan. The dealer collected 6% sales tax. Arizona tax is 6.9%, so I had to pay the difference of 0.9% when I registered the trailer in Arizona.
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:-) not me lol. It's my Mom. She lives in the Phoenix area and looking to get another TT. We were trying to figure out how the tax/registration process works. Also trying to figure out if it's cost effective to drive here to buy one and if warranty work needs to be done, can she get the work done without any hassles.
__________________
2019 Jayco 26BHX Eagle HTX Fifth Wheel
2018 Chevrolet Silverado Double Cab 2500HD 4X4 6.0L 4.10 axle
Reese 16K Round Tube Slider Hitch
HD Trailering Package with Integrated Brake Controller
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08-08-2014, 10:12 PM
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#6
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Member
Join Date: Jul 2014
Location: Vail
Posts: 55
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My family felt that it was cost effective. We saved a ton of money on the purchase price. We did spend quite a bit to transport it home though. We looked at it like this:
1. We had family in MI and PA that we wanted to visit
2. Flying a family of 5 ain't cheap (plus we would have needed a hotel and rental car too)
3. We wanted an adventure for a vacation
4. The cost of driving the trailer home was our vacation
5. Since we only had to tow the trailer one way, it was a reasonable trip to do in the allotted vacation time we had
6. We saw a ton of friends along the way that we otherwise would not have been able to see
I'm very glad we did it, and I think the trailer will be worth what we paid for it in 7+ years at AZ prices.
That said, YMMV.
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08-08-2014, 10:19 PM
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#7
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Member
Join Date: Jul 2014
Location: Vail
Posts: 55
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As far as warranty work is concerned, I have not needed to find out yet (knocking on wood). I think any Jayco dealer can perform the work, and I think all Camping World stores are also Jayco dealers.
We actually asked about getting the trailer we wanted at the local Camping World, and they said they had tons of units on the lot in IN but could not get drivers to drive them down to AZ. That was the final spark we needed to commit to the trip.
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08-09-2014, 07:11 AM
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#8
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Senior Member
Join Date: Nov 2011
Location: Where ever the boss says we're going.
Posts: 16,098
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Quote:
Originally Posted by slinger
I think all Camping World stores are also Jayco dealers.
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They are getting to be less and less.
Local dealers should, but many will put you on the back burner, service your unit. If you are far enough away from a local dealer JAYCO has been known to authorize 3rd party service.
__________________
DISNEY LOVERS
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08-09-2014, 04:33 PM
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#9
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Junior Member
Join Date: Aug 2014
Location: crestview
Posts: 9
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some states charge whatever tax is in their state. if its less in your original st you pay the difference. if its more you are out of luck no refunds. don't believe any offer a temp.
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08-10-2014, 10:00 AM
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#10
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Senior Member
Join Date: Jun 2010
Location: Saskatoon Sask Canada
Posts: 10,726
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According to the dealers a Quartzsite Az you can avoid the local state tax by having the RV delivered just outside of the state line.. then you only have to worry about paying the taxes on the state you register it in..
__________________
Seann
2004 Chev Silverado Duramax optioned past the max. 2009 Jayco Eagle 308 RLS 900watts of solar, Lithium batteries (400amp hour), 2000 watt (4000 surge) whole house inverter.
145days /2023 2022/151 2021[/COLOR]
93/2020,157/2019219/2018 206/2017,215/2016, 211/2015, 196/14, 247/13, 193/12
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08-11-2014, 08:03 PM
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#11
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Senior Member
Join Date: Dec 2010
Location: North Idaho/Arizona
Posts: 5,446
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Seann is correct. We bought our Jayco in Quartzsite and signed the papers in Blythe California. We called the license office in Idaho and sent the information they needed. Idaho sent us a registration and we had to pay the sales tax when we got home. Idaho tax is a lot less than Arizona's tax.
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2011 Eagle 330RLTS with just about every option.
2017 Silverado 1500 4x4 5.3 with tow package. (no, we don't tow the Jayco with it.)
2018 Surveyor 265RLDS well equipped.
Life in the slow lane is still life.
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08-13-2014, 02:14 PM
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#12
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Senior Member
Join Date: Apr 2014
Location: Gilbert
Posts: 607
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Glad I am not the only one that thinks/knows AZ trailer prices are out of control. I just purchased in CA and towed back to AZ. I had to pay slightly higher (8.2% - total) taxes in CA than in AZ (8.0%), but still saved that much by a long shot. I payed literally (yes, I know what that word means), over $7000 less in CA than I would have in AZ. They offered to take it to the AZ boarder for me (for a cost), but it would have only saved me $50 (vs paying the CA extra 0.2% tax). I was already there, so the $50 didn't make a lot of sense.
The term for the taxes being paid to the other state is reciprocating - while I was at the dealer and the AZ DMV, they used that term. It makes me think that not all states are reciprocating to each other on the taxes. Would be worth finding out before you buy out of state.
__________________
2014 Jayco Jay Flight 32 BHDS
2015 Ford F-250 Lariat 6.7L Powerstroke 4x4
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