There should be no sales tax charged on vehicles used in interstate commerce. This includes parts. In WA parts bought under an ICC number do not pay tax. A new truck that makes its first trip on an interstate run does not pay sales tax even it spends the rest of its life running intrastate. A truck making its first run intrastate is required to pay sales tax even with an ICC number.
For better or for worse rules that apply to passenger vehicles do not apply to vehicles used in interstate commerce.
avoiding sales tax
Discussion in 'Ask An Owner Operator' started by MT Pockets, Jan 31, 2010.
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CA charges full sales tax about 8%, unless delivered out of state.
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It really depends on the state you register it in. I know in Co they do charge sales tax. There are quite a few states that don't charge sales tax, some I know of are: Wy, Mo, Ny, Pa, OK, OR if you have an MC number.
Baack Thanks this. -
Illinois changed their rules back when I bought my last dually.
They now require it to have a gvw of 16,000. So, I buy most of the repair parts and tires in Indiana where I operate from under their ICC rules and pay no tax.Magnum1 Thanks this. -
Don't forget NJ.
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It is going to be based on the state that you get your plates in. So if it is in CA, most other states will collect sales tax if CA says you pay it on Interstate vehicales. But this must have changed in the past couple of years.
And forget about trying to get plated in another state. They have cracked down on that. Im in IL and it is one of the worst states, if not the worst, to plate in. -
EASY to do, easier then most ppl think. Have any relatives/good friends in a GOOD state? Should I go any further? If you need more advice then I've just given, which may not be much to an amature, then you'll get burned quick by the first unexpected question to you.
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Even this is getting harder to do. They want utility bills in your name, a phone bill, property taxes or lease agreement.
IL was asking for all that and I thought "Who would want to cheat and get plated out of IL?" but the answer is for the IRP system to work the expensive states are making sure the cheap states are finally following the system.
I was going to rent a desk in IN and do my LLC there but there is enough paperwork in this business I didn't need one more item to worry about. -
If you're going to lease onto a carrier, and the're located in a tax exempt state, you can go through the state the're located in to get your plates.
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That's one way. Another way is the way I've posted it previously. It is not as hard as some people think. Plus, it is legal, if done wright. just ask the state of your liking what you need and what can you can bring in place of something that you don't have.
BigBadBill Thanks this.
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