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Sales tax question before snowcheck

S

skippy

Well-known member
How does it work if I pay sales tax in one state say 5% then go to register the sled in my home state that's at 6.75%. Will i have to just pay the difference between the two which would be 1.75% or do I have to pay the whole 6.75% for my state? Thanks
 
Probably depends on the state. In Colorado, the registration has nothing to do with sales tax.
 
I believe you will pay the difference when you register it here, so you should not be out any extra $.

Don't hold me to it, but that is what I heard.
 
I believe you will pay the difference when you register it here, so you should not be out any extra $.

Don't hold me to it, but that is what I heard.

That's what I thought at first, but there's a dealer down in Rochester,MN telling someone I know that it's a out of state scam to get you to snowcheck from them, then when you go to register it in Minnesota you get stuck paying the tax here to. Hopefully this makes sense! LOL
 
Here is some info on registering, looks good but no idea if it is a for sure answer! Better call the dmv

https://www.revisor.mn.gov/statutes/?id=84.82

Subd. 10.Proof of sales tax payment.

A person applying for initial registration of a snowmobile must provide a snowmobile purchaser's certificate, showing a complete description of the snowmobile, the seller's name and address, the full purchase price of the snowmobile, and the trade-in allowance, if any. The certificate must include information showing either (1) that the sales and use tax under chapter 297A was paid or (2) the purchase was exempt from tax under chapter 297A. The commissioner of public safety, in consultation with the commissioner and the commissioner of revenue, shall prescribe the form of the certificate.
The certificate is not required if the applicant provides a receipt, invoice, or other document that shows the snowmobile was purchased from a retailer maintaining a place of business in this state as defined in section 297A.66, subdivision 1.
 
Something doesn't sound quite right. Definitely call your state DMV.

Usually the tax on the vehicle is payed to the state in which you live. When you register, transfer title, and license it is when the tax is collected, at least that's what happens here.

I've purchased vehicles and sleds out of state and have never paid an out of state sales tax on any of them but my state likes to collect.
 
paying tax

in south dakota we do not have sales tax on snowmobiles,cars etc.,when you go to register your snowmobile you pay a 3% excise tax but i am buying mine from ken's sports in wis. and am paying 5% sales tax and since it is more than the 3% excise tax i will be exempt from paying it in sd,but will have to have ken's fill out a form from sd dmv showing i paid sales tax in wis. because in wis. you are required to pay sales tax no matter what state your from no exceptions
 
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This new pro that I am snowchecking I am getting from Minnesota just like my 2010 Dragon. Both I bought from a dealer in Minnesota and I dont pay any sales tax in MN. WHen I get back home and register it in Iowa I pay the full 6% tax at that time.

The worst part about selling a sled privately is I have to pay the tax on the full price of the sled. But on the bright side I got more for it by selling it myself than trading it in so it cancels out.
 
I did the same thing but only with a truck. You don't pay sales tax until you register the vehicle in your state. I blew a motor on my truck on the way to Wyoming to ride last year. I purchased a 2009 Suburban at Larmie Chevy and they did not charge me sales tax. I just paid it hear in Michigan when I registered the truck.
 
It may depend on state but I buy my sleds in Idaho or Washington and don't pay sales tax since I live in CA and dealers have no problem with this. I leave them in Idaho and so don't pay use tax in California either. In the case of California if you don't bring them into the state for 90days or 6 months(can't remember which it is) you don't have to pay use tax(same as sales tax) if you then bring it into state. You should look into it.
 
I did the same thing but only with a truck. You don't pay sales tax until you register the vehicle in your state. I blew a motor on my truck on the way to Wyoming to ride last year. I purchased a 2009 Suburban at Larmie Chevy and they did not charge me sales tax. I just paid it hear in Michigan when I registered the truck.

Paul is correct. After buying multiple sleds out of state, you don't pay tax in the state you bought it but rather the state you register it.
 
ANSWER FROM DNR (MN)

Called MN DNR (651) 296-6157

If you buy from a dealer anywhere AND you pay sales tax you only need to pay difference.

If buy in WI and tax is 5% and MN is 6.5% you would pay 1.5% when you register it in MN. You must have documentation showing you already paid tax or you will pay it all here.
 
If you buy from a dealer anywhere AND you pay sales tax you only need to pay difference.

If buy in WI and tax is 5% and MN is 6.5% you would pay 1.5% when you register it in MN. You must have documentation showing you already paid tax or you will pay it all here.

.X2
 
This new pro that I am snowchecking I am getting from Minnesota just like my 2010 Dragon. Both I bought from a dealer in Minnesota and I dont pay any sales tax in MN. WHen I get back home and register it in Iowa I pay the full 6% tax at that time.

The worst part about selling a sled privately is I have to pay the tax on the full price of the sled. But on the bright side I got more for it by selling it myself than trading it in so it cancels out.

Why are you paying tax for selling an item here in Iowa? I've never had to, just when buying something. Usually the buyer has to pay the tax on the sale price.
 
Why are you paying tax for selling an item here in Iowa? I've never had to, just when buying something. Usually the buyer has to pay the tax on the sale price.

Sorry didnt word that very good. I will have to pay tax on the full price of my new Pro now since I sold my dragon privately where if it was traded in I would only have to pay tax on the difference.

But yes the guy that bought my Dragon will pay the tax for that.
 
Called MN DNR (651) 296-6157

If you buy from a dealer anywhere AND you pay sales tax you only need to pay difference.

If buy in WI and tax is 5% and MN is 6.5% you would pay 1.5% when you register it in MN. You must have documentation showing you already paid tax or you will pay it all here.

Woudn't you want the money to go to help the state you live in?
 
Woudn't you want the money to go to help the state you live in?

Yes. There was a dealer in WI which was saving many guys $700+ and I think that is why so many are buying from him.

Locally the rmk was going to cost me $400 more than the proClimb 8. For the rmk I was going to add airframes and new rear spring plus re-valve to handle my weight. This made the RMK much more expensive than the CAT for me to ride.

I hate wrenching on my sled and usually just bring it to the dealer. I went to my current dealer who handles Yamaha and Polaris and told him I had made up my mind and was going with the CAT. He asked why, I told him money was an issue right now and the CAT was going to be much cheaper since I could ride it as is and the starting price was cheaper.

He said sit down, I do not want to loose you as a customer. He ended up giving me a killer price to keep my business. I am really glad he did since I enjoyed working with those guys so much.

I was just interested in this topic and called the DNR to get the answer.

Bought mine here! The price difference between the dealer in WI and most here has pretty significant, I can see why people are buying there.
 
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Sorry didnt word that very good. I will have to pay tax on the full price of my new Pro now since I sold my dragon privately where if it was traded in I would only have to pay tax on the difference.

But yes the guy that bought my Dragon will pay the tax for that.

Ok, wondered if that's what you meant. Depending on how the paperwork is written up will determine if you'll pay full tax, or just for the difference. With trading in mine in Iowa, tax is figured before trade value is applied. You could get lucky tho!

Nevermind, your not trading. Haha. But I see your point in trading out of state. Would all depend on how it's written up.
 
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