Install the app
How to install the app on iOS

Follow along with the video below to see how to install our site as a web app on your home screen.

Note: This feature may not be available in some browsers.

  • Don't miss out on all the fun! Register on our forums to post and have added features! Membership levels include a FREE membership tier.

sALES tAX

Texasron

Well-known member
Lifetime Membership
Do out of staters (TX) have to pay sales tax. How much? I had many differing answers.
 
In regards to what? Buying a new sled?

I bought my 2011 Pro in Wyoming. Colorado does not title snowmobiles so there is no sales tax on sleds purchased out of state. I saved a good chunk with this method. I bought a truck years ago in Montana and brought it back to Colorado. Because it did have a title, Colorado charged me tax during registration.

I'm not sure what happens in Texas.
 
In regards to what? Buying a new sled?

I bought my 2011 Pro in Wyoming. Colorado does not title snowmobiles so there is no sales tax on sleds purchased out of state. I saved a good chunk with this method. I bought a truck years ago in Montana and brought it back to Colorado. Because it did have a title, Colorado charged me tax during registration.

I'm not sure what happens in Texas.

On your sled sale, did you have it shipped across the state line?
 
In regards to what? Buying a new sled?

I bought my 2011 Pro in Wyoming. Colorado does not title snowmobiles so there is no sales tax on sleds purchased out of state. I saved a good chunk with this method. I bought a truck years ago in Montana and brought it back to Colorado. Because it did have a title, Colorado charged me tax during registration.

I'm not sure what happens in Texas.

On your sled sale, did you have it shipped across the state line?
 
On your sled sale, did you have it shipped across the state line?

No, I picked it up at the dealer. This can be very confusing because I have bought a sled and had the dealer deliver across a city limit so that the tax wasn't so high. But when it comes to out of state, I don't think it mattered because the sled wasn't titled and therefore Colorado didn't have any way to collect taxes.
 
In regards to what? Buying a new sled?

I bought my 2011 Pro in Wyoming. Colorado does not title snowmobiles so there is no sales tax on sleds purchased out of state. I saved a good chunk with this method. I bought a truck years ago in Montana and brought it back to Colorado. Because it did have a title, Colorado charged me tax during registration.

I'm not sure what happens in Texas.

Well unfortunately you are incorrect. All Colorado residents are required to pay consumer use tax on anything they purchase and use that they did not pay sales tax on. (this includes all your online purchases that would have been subject to sales tax if you had bought the item at the corner store.) Just because a sled doesn't go through the titling process and the state doesn't automatically collect sales tax doesn't mean you don't owe it. Colorado form DR 0252 is used to report and pay Colorado consumer use tax. Google it if you don't believe me.

That said, so far there has been little, if any, enforcement. You can expect that to change as the state starts looking for ways to collect more money that is owed to them since they are basically broke. All states are becoming more and more aggressive about enforcing tax laws as they look for more revenue.

I'm a CPA and I deal with this on a regular basis.
 
Well unfortunately you are incorrect. All Colorado residents are required to pay consumer use tax on anything they purchase and use that they did not pay sales tax on. (this includes all your online purchases that would have been subject to sales tax if you had bought the item at the corner store.) Just because a sled doesn't go through the titling process and the state doesn't automatically collect sales tax doesn't mean you don't owe it. Colorado form DR 0252 is used to report and pay Colorado consumer use tax. Google it if you don't believe me.

That said, so far there has been little, if any, enforcement. You can expect that to change as the state starts looking for ways to collect more money that is owed to them since they are basically broke. All states are becoming more and more aggressive about enforcing tax laws as they look for more revenue.

I'm a CPA and I deal with this on a regular basis.


Thanks for the explanation. So even if you ship something in you are supposed to pay the tax? What's the point of the "Amazon Law" that the legislature was discussing last summer? Was it just enforcement?

It's tough because all states are different. I work all over the west, lately I have been buying tools and materials for jobs. Depending on where I am and where I am buying/shipping something from I get taxed differently. I recently had a steel supplier in IN refund me tax on material I had shipped to WY. I was very surprised to get that call.
 
im sure your correct but....... there aint NOOO way im filling out a form i have to go get and volunteer to pay this tax happy state! screw'em!!

THIS state isn't tax happy - you should see some of the other ones! New York, California and Washington to name a few --

We at least have a balanced budget amendment which prevents us from going beyond broke which is what is happening in a lot of other states.

Like I said, technically you do owe the tax. I have yet to fill one of these forms out and send it in for an individual and I have yet to see the Dept of Revenue try to audit an individual over it. They do it to businesses all the time.
 
Thanks for the explanation. So even if you ship something in you are supposed to pay the tax? What's the point of the "Amazon Law" that the legislature was discussing last summer? Was it just enforcement?

It's tough because all states are different. I work all over the west, lately I have been buying tools and materials for jobs. Depending on where I am and where I am buying/shipping something from I get taxed differently. I recently had a steel supplier in IN refund me tax on material I had shipped to WY. I was very surprised to get that call.

yes - and the amazon law hasn't gone anywhere to my knowledge. Every state I know of has a similar law where if you didn't pay the tax when you purchased the product then you are required to pay the tax on a use tax form. Some states have it right in your state income tax form. It's much more strict for business than individuals.

My experience is that most suppliers are just as confused as the rest of us as to what transactions result in sales tax and what doesn't.
 
My point with titling was that it would force us to pay that tax if you bought out of state. I get that you are supposed to. I hope we never title sleds for this reason and the fact that sleds can more easily be sold (they don't have to be paid off from the bank). However, I suppose that could lead to a problem as well. I always make sure I get two copies of a bill of sale for that reason. If we had titles, you couldn't flip sleds until you had them paid off.

On the flip side, some say titled sleds would be financed at a better rate. However, I never pay more than 2.9% for sled financing.

It can be very difficult to sell a rec vehicle to someone out of state. I sold a quad to someone in Arizona and they kept calling me telling me I need to provide more registration details. It was a dunes quad so it wasn't even registered in Colorado. I only rode it in Idaho. So I paid for registration for the heck of it and then they had to do some work on the Arizona side to get it all done. Total CF!
 
I bought a Polaris Razor this fall and at the last moment discovered that there was a lien against it at the bank. That was a near fatal mistake on my part. I think the guy was going to be honest and go pay the thing off but if he hadn't that would have been a huge issue. Once I figured out what was going on the check was made out to him and the bank jointly. A title would have prevented that. A guy can never be too careful. I do like not having a title because I agree it sure does make buying and selling easier but after the Razor incident I'm a little gun shy.
 
I thought Colorado and California lost their legal battle on collecting sales tax from out of state retailers?

For a titled vehicle it is different, but I do know the states lost their battles to collect sales tax from a company that is not within their state limits.
 
I thought Colorado and California lost their legal battle on collecting sales tax from out of state retailers?

For a titled vehicle it is different, but I do know the states lost their battles to collect sales tax from a company that is not within their state limits.

Oh they are losing that battle alright but that was just trying to get the retailers to collect the tax for them. The requirement for residents to pay it still remains.
 
They can try but several people have won that battle individually. My brother recently won in California. They wanted him to pay sale tax on amazon purchases, he fought them and won. It is illegal for the state to collect from some but not others.


Sent from my iPhone using Tapatalk
 
Colorado isn't tax happy? my dying azz it ain't.

Every year we have some measure on the ballot to increase taxes. Colorado taxes you for everything.

sales tax,
property tax
road and bridge tax, bla bla bla.
 
THIS state isn't tax happy - you should see some of the other ones! New York, California and Washington to name a few --

We at least have a balanced budget amendment which prevents us from going beyond broke which is what is happening in a lot of other states.

Like I said, technically you do owe the tax. I have yet to fill one of these forms out and send it in for an individual and I have yet to see the Dept of Revenue try to audit an individual over it. They do it to businesses all the time.

ok sorry.... a FEE HAPPY state:face-icon-small-win how's that? and if we keep going the direction we are we WILL be the next california, new york, etc.
 
Last edited:
Premium Features



Back
Top