Buying a car or truck....which state is cheaper?

[FDNYLiberty]

If someone in WY wants to buy a new car or truck, which state surrounding WY is cheapest to purchase it? MT, SD,CO,UT?  Are there any "penalties" imposed by WY (a state sales tax or other fee) for buying a car or truck
out-of state?

Thanks.

FDNYLiberty

[guernsey rifleman]

The sales tax is paid when you get the title for the vehicle. The rate is that of whatever county you register the vehicle in.

[Terence]

MT has no sales tax. But, as soon as you register a new vehicle in Wyoming you're
hit with a large registration fee for new vehicles. It goes rapidly down as the car ages
and, obviously, for older cars.

Terence

[FDNYLiberty]

Guernsey Rifleman,

Am I to understand that (as a WY resident) that if I pay for a car in MT (no sales tax), and then when I bring it over to WY (to register it) I will get hit with the sales tax PLUS the registration fee?? Or just one or the other?

Am I better off to buy a car as a NON-WY resident, then just register it in WY when I establish residency? Then I just pay the registration fee?  Is this a cheaper option, or does it really matter since registration fee is based on age of vehicle? I would hate to pay a sales tax (say in NY) when I buy the car and then get hit again when I register it in WY.

 It is somewhat confusing, and I thank you for your patience?

Thanks folks.

FDNYLiberty

[Don Wills]

You need to prove to some state authority that you are a resident of that state to obtain title and plates for the new vehicle.  If you can establish Montana as your residence, you pay no sales tax.  That's where to buy it and register it.  But if you can't establish residence in the state where you buy it, the dealer gives you temporary plates and doesn't charge sales tax.  But you don't get title or plates until you go to the state authorities of where the vehicle will be kept as home base - you need an actual residence for that.  You then pay that state's sales taxes, title and license plate fees.

Wyoming has a sales tax which ranges from 4% to 7% depending on where you live - most counties are 6%.  But the license plates typically cost as much as 2% of the purchase price in the first year - it's actually a property tax plus a small registration fee.  The property tax portion decreases somewhat in each subsequent year.  The bottom line is that in five years of ownership, you've paid more than 10% of the manufacturer's new list price (not the selling price) to the state of Wyoming.  And sadly, the same holds true for trailers of any kind.  I just bought a fifth wheel for $75,000.  First year plates cost $1,275.  For a vehicle with NO ENGINE!  The property tax on a $75,000 primary residence would be less than what I pay for license plates in the first year for my new fifth wheel.  As I've said before, Wyoming is not a low tax state when you take into consideration all of the factors.

I have a friend who was a full-time RVer and pretended to live in South Dakota for his Class A RV.  He now just has a PO Box there, and I believe he is registered to vote there.  License plates and fees are very inexpensive there, so that might be a good choice.

So the question is how much do you want to bend (or break) the rules to try to avoid taxes.  Ahh - an age old question ...  

[FDNYLiberty]

Thanks Don. That makes it a bit clearer.

Geez, with all of the oil, mineral and gas revenues the state generates, I am really surprised that the costs for regisstartion of a vehicle are so extreme in WY. That is (one) political fight that should be fought to reverse or lower this "hidden tax."
 

[SunDog]

There is nothing "hidden" about Wyoming's vehicle tax, any more than Wyoming's non-existent income tax is "hidden."

I brought a vehicle into Wyoming on temporary tags from Denver. I paid pretty much as described, but the sales tax was computed on the purchase price less the trade in. It would have been somewhat higher if it had been registered in Denver.

The selling price of the vehicle was substantially lower in Denver then it would have been in Billings - it was a Mazda, and there is no nearby Mazda dealer in the Sheridan area, so I don't know what kind of price I might have gotten in state.

[Crappiewy]

Personally I wouldnt buy a used truck in Wyoming. They are drove into the ground before people sell them.

[manfromnevada]

Here's the low down from Crook County :
http://www.crookcounty.wy.gov/clerktitles.html

Hope this helps.
I think the SALES TAX is due as part of the TITLE.
The registration fees are composed of a fixed part (small) and a variable part based on value (large). This is actually a personal property tax as Don says. Many states have this. Some base it on weight, but WY is based on value.

Mac

[kylben]

I have a somewhat off-topic, but related question...

What are the emissions testing requirements in Wyo? Any? Just in the cities?  Statewide?

I just lost a perfectly functional car here in AZ because of a computer glitch that would have cost too much to fix.  It caused the test to fail even though the tailpipe emissions were within range. I'm not worried too much about the taxes, especially since I lean toward preferring the older stuff without all the electronic crap that is just waiting to fail, but because of that, emissions becomes an issue. I sold at a junker price it to some Mexicans, they're always up here trolling for cheap cars to bring back home and sell, and they don't have to worry about emissions testing.

"Personally I wouldnt buy a used truck in Wyoming. They are drove into the ground before people sell them."

Interesting point.  I have a 90 Dodge Ram that I like a lot, that is in passable condition even with very high miles (~200K), and I've been contemplating whether, when I finally do move, to sell it and replace it up there or drive it up.  It gets terrible gas mileage, and worse, the fuel tank is cracked, but its some weird molded plastic tank that nobody makes any more.  Upshot is, it only has a range of about 100 miles as it sits, and finding a used tank is proving to be extremely difficult (any that come available get snapped up right away).  I don't think its worth bringing it up without doing something about the tank, but if you say that the used truck market is poor up there, I may have to put more effort into finding a tank, or getting someone to fashion something the old fashioned way, with steel.

How is the parts situation for older cars/trucks in general up there?

That damn cash for clunkers BS really put a crimp in the whole used car market, in a variety of ways, which was obviously the primary point.

[Crappiewy]

Emission control in Wyoming is when the engine siezes.
No more emissions....

[FDNYLiberty]

As CrappieWY says, there are no annual "emissions inspections" required in WY. In NY, it costs $35 per year to have your vehicle "inspected." It's basically just another rip-off hidden tax.

I would suggest holding on to whatever cars/trucks you have and bring them with you to WY. Older vehicles are cheaper to register. Used car parts can easily be found via internet if needed.

[manfromnevada]

OK, let's put this to rest with a specific example:
In April, 2007 I bought a used Dodge RAM 1500 4WD for $7,500 in South Dakota.
Paid NO fees or taxes or title or registration there.

When I titled the vehicle in Sundance, I paid 6% sales tax on the purchase price for a total of $454.
The title shows a "factory price" of $20,993. I guess that's their database value of what the truck cost new.

That same value ($20,993) shows up each year on the annual registration. But because of the age of the vehicle, this year's registration shows a "15%" valuation of $3,149, upon which the "county fee" (personal property tax) of $94 is charged as well as the "state fee" (fixed amount) of $30 is charged for a total of $124 for this year.

Does that answer the question? You can do the math backward to see what a new vehicle would cost to register.

Mac
Ps. If I had my druthers I'd much rather pay a high vehicle registration (personal property tax) than a high real estate property tax (like in SD). Rather pay nothing, but that's not in the cards I've been dealt.

[FlyingDevildog]

So does WY still charge you sales tax on a vehicle that you have already paid a sale tax on?

[Don Wills]

So does WY still charge you sales tax on a vehicle that you have already paid a sale tax on?

Nope, but if it less than a year old, already titled in another state and you want to transfer title to Wyoming, you have to prove that you paid the other state's sales tax or they will charge you sales tax.  A bill of sale from a real dealer should suffice, but check with the Wyoming county clerk's office first.