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Shipping Sleds from out of state, NO TAX?
- Thread starter MRN
- Start date
States with sales tax and required state registration will get their sales tax when you try to register the sled in the home state. Just the way it works. If you don't have to register or license, you can avoid the sales tax with a seller/cooperating dealer (same goes for trailers in states that don't require trailer registration for light sled haulers). FWIW.
I live in Colorado and this year all sleds are titled. So, as Reg2view stated, you will pay the taxes when you title the sled anyway. It was a good deal in the past to go to Wyoming and pick up a sled and save $600 or so on taxes. But the other part of that is that you don't have a dealer who is willing to stand behind your purchase in the event that you are dealing with recalls or other issues.
In Colorado titling your sled from a private seller is optional. Only in state dealers and auctioneers are required to Title them. Buy from an out of state dealer and pay your $30.25 registration sticker and you're good to go.
http://cpw.state.co.us/buyapply/Pages/RegistrationsOHV.aspx
http://cpw.state.co.us/buyapply/Pages/RegistrationsOHV.aspx
EXCEPT, of course, you are required to pay use tax on any out of state purchases in the state of Colorado and use tax is equivalent to the sales tax rate. Most states have similar laws. Colorado isn't doing much to enforce this yet but that day is coming you can bet on it. Some states are starting to get pretty aggressive at collecting since most state governments are hurting for funds.
This is a questionable practice to engage in as far as I am concerned. Every state has a different tax structure. If they don't have sales tax (Oregon), they get it in other ways. These various tax platforms support schools, roads and other services. There used to be a way for you to set up an LLC in Montana which would allow you to buy motorhomes, fifth wheels, etc. and license them there even if you live in another state. It was generally frowned on and determined to be illegal by many states. I always figured that a guy buying a $400,000 motorhome should be able to afford to pay the applicable taxes in the state where they reside. I kind of feel the same way about what is being described above. If too many people do this, it puts additional burden on the rest of us. Buy your sled where you live and ay the taxes!
I have no problem paying sales tax. I also like supporting my local dealers.
Talking to Colorado State Parks, it sounds like titling will become a standard in the near future. Banking agencies prefer it too when it is available. Sometimes you get better interest rates with titling. Selling is also easier as it defines if you outright own the vehicle or not (vs a piece of paper stating you own it).
Let's face it, if you are skipping out on titling it is just to avoid paying tax. I get it...it's a small chunk of money. Fuel, titling, road & bridge and several other taxes are in the process of changing because of major impacts like this.
Let's face it, if you are skipping out on titling it is just to avoid paying tax. I get it...it's a small chunk of money. Fuel, titling, road & bridge and several other taxes are in the process of changing because of major impacts like this.
The only time it works out is if ur local taxes are a lot lower. Still only thing I have ever debated doing this on was a floor removing machine for work cus wanted me to pay Ill taxes which were double wi but was cheaper to pick up my self then pay for shipping and my taxes.
