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Browse: Home / MONEY / Taxes

How can a state tax a person if the individual buys a car in Delaware?

xtremelyeuro: How can a state tax a person if the individual buys a car in Delaware?
Some states like Delaware have no sales tax at all. If a person lived in a state with a sales tax (like Pennsylvania), couldn’t they just cross the border and go to Delaware to buy a vehicle tax free? I heard about “use taxes” but how the hell would a state enforce something like that?
And what if you simply don’t bother registering it in PA?

Answers and Views:

Answer by rtfm
They’ll enforce it when you attempt to register the car in PA. They’ll want to see the tax documents then.

Answer by Chas
State law requires you to register your car in PA. Who’s address are you going to put on it anyway? Ask yourself, do you really want to pay the fine for not doing it? In Las Vegas, there’s a turn in your neighbor program to get people who don’t register in state.

Answer by tro
when you register your car in PA you will be charged the sales tax on it
if you don’t register it, it could cause you problems you really don’t want

Answer by ninasgramma
To operate your vehicle, it must be registered in your state of residence. If your vehicle is not properly registered, you cannot insure it. Driving an unregistered and uninsured vehicle sets you up for legal problems and personal liabilities.

As stated, when you register your car, a use tax will be imposed by PA as a condition of registering your vehicle so that you can legally operate it in PA.

Answer by Judy
When you register it, you’ll pay the tax. And if you simply don’t bother to register it in PA, you won’t have a valid license plate so you’ll be talking to friendly Officer Smiley.

Answer by shoredude2
Delaware actually does tax cars. When you register your car in Delaware, you pay a 3% car registration tax. You also pay the same tax if you move to Delaware from another state and register your car.

Delaware won’t register your car there unless you aren’t a Delaware resident. So you’ll have to register it in PA or you won’t have a license plate and will be an easy target for the police. Before you register it in PA, they will verify that you have paid the correct percentage for your county. If you didn’t you owe the money to PA before you can even think about getting license plates.

Related Questions:

  • 1.  How Federal tax is calculated for whithholding from paycheck?
  • 2.  What kind of jobs are available for those with a master’s in taxation?
  • 3.  What is the tax rate on tuition reimbursement?
  • 4.  Can you itemize your state taxes on your federal tax return?

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