Hypothetical Question

Camping Couple · 08-08-2014, 07:00 PM

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

maromeo · 08-08-2014, 07:22 PM

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.

slinger · 08-08-2014, 07:42 PM

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.

Jrmay25 · 08-08-2014, 08:18 PM

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

Camping Couple · 08-08-2014, 09:34 PM

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.

:-) 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.

slinger · 08-08-2014, 10:12 PM

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.

slinger · 08-08-2014, 10:19 PM

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.

Grumpy · 08-09-2014, 07:11 AM

Quote:

Originally Posted by slinger

I think all Camping World stores are also Jayco dealers.

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.

br549vi · 08-09-2014, 04:33 PM

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.

Seann45 · 08-10-2014, 10:00 AM

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..

clutch · 08-11-2014, 08:03 PM

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.

nunyadamn · 08-13-2014, 02:14 PM

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.

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