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Asked: Dec 15, 2008 - 02:27 AM

Status: Closed

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adrianbritt

I live in MS (tax at 7%)/ Thinking about buying a car in La.(tax at 9%) Do I pay taxes in LA and again in MS?

I found a car in Baton Rouge, La. stickered for $36,000, after rebates and incentives it is down to $29,000.The dealership says "I pay taxes in La. and the state of La. will even up with the state of Ms". I thought I had to pay the taxes in the state that the car will be registered? Also the dealer told me I have to pay 9% tax on the original $36,000 and not the $29,000 after the rebates(or the amount financed). Any advice at all would be helpful. It is a good price for the car even with the La. tax but I don't want to pay it if I don't have to. I need an answer quickly, Please!!

In Buying & Selling > Car Buying > Taxes
In Buying & Selling > Car Buying > Incentives / Rebates
In Buying & Selling > Car Buying > Fees
2 answers - 341 days ago

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karjunkie

Date: Dec 15, 2008
Time: 07:33 AM

You only pay state sales tax where you title the car, not where you buy it. This dealer sounds like a crook to me. You never pay sales tax on sticker, only on the actual purchase price. I'd stay away from this dealer. Good luck on whatever you decide.

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greanpea68

Date: Dec 20, 2008
Time: 03:44 PM

Karjunkie correction....... Sorry Bud. Each state operates differently. Some states require you pay on the MSRP... and some states pay on what the purchase price is.

But you were correct about where to pay the sales tax. You pay it in the state where you register the vehicle. The slaes person or the Manager handling the deal may have not known where you registering the vehicle. Than again they may have. I wouldn't worry about that though because you don't have to pay the dealer sales tax because you will be registering the vehicle your self. Or what they should do if you are financing with the dealer is send the sales person who sells the vehicle to you... to the registry with you that way he can get ahold of a copy of the registration for the bank to have a copy.

GP

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