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Discussion Starter · #1 ·
I’m from Alabama looking to buy an ATV from Mississippi. They say they don’t COLLECT sales tax so does that mean Alabama will hit me up for it down the road. We do not title ATVs here but I’m thinking you just don’t get out of paying tax that easy.


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I don't know anything about Alabama's laws ----------------- I tell you what happened to a friend here in Louisiana who bought a bike in Mississippi for his son , after a year the boy wanted a bigger one , so dad did a trade in deal with a Louisiana dealership , he said the deal was almost complete and they told him his title wasn't clean and he had to come up with $900 for the tax money he didn't pay ---- but you say you'll don't have titles
 

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Discussion Starter · #3 ·
I don't know anything about Alabama's laws ----------------- I tell you what happened to a friend here in Louisiana who bought a bike in Mississippi for his son , after a year the boy wanted a bigger one , so dad did a trade in deal with a Louisiana dealership , he said the deal was almost complete and they told him his title wasn't clean and he had to come up with $900 for the tax money he didn't pay ---- but you say you'll don't have titles


Wow, $900 is a lot of tax!


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Yeah if you don't title bikes you might be able to get away with it.

Here in Arkansas most don't title the bike. Sales tax is charged at the dealer, but people don't title them because they don't want to pay property tax on them.

If you finance a bike a title has to come into play.
 

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I don't know anything about Alabama's laws ----------------- I tell you what happened to a friend here in Louisiana who bought a bike in Mississippi for his son , after a year the boy wanted a bigger one , so dad did a trade in deal with a Louisiana dealership , he said the deal was almost complete and they told him his title wasn't clean and he had to come up with $900 for the tax money he didn't pay ---- but you say you'll don't have titles


Wow, $900 is a lot of tax!


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The taxes in Louisiana varies (can combine state and local and suspect there may be penalty involved in this case for $900), and as an example, the tax rate in Baton Rouge may vary from 4% to 10.5%.
 

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depends ?, if you finance it ?, you will have to pay taxes. why ?, because you have to take the bill of origin to the revenue office, pay taxes, then they transfer it over to your name. as well as put it on your personal property. I say all of this, because I purchased my jet ski from MO, did not pay taxes there, but I had to pay taxes on it down here in Arkansas, because I had to list it on my personal property, pay taxes, then I could get my tags ( decals ) for it before I could put it on the water. once It was paid off, I then got my title ( bill of origin ) made out to my name. if you pay cash up front ?, and don't list it on your personal property ?, then yeah..you could get away from paying taxes on it..but..AND I MEAN A BIG BUTTTTTT !!!!!!!!..if your riding on federal land, and you get stopped ?, and they don't see that little sticker anywhere on the atv ?, this raises a red flag..and it might all come back to bite ya on the azz ?..hard to say..this is a play or pay here..lol.
 

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Yeah if you don't title bikes you might be able to get away with it.

Here in Arkansas most don't title the bike. Sales tax is charged at the dealer, but people don't title them because they don't want to pay property tax on them.

If you finance a bike a title has to come into play.
when you say don't title ?, what you should be saying is...we don't list it on our personal property !!..lol..because we all know..it makes out personal property taxes go up..lol.
 

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Discussion Starter · #8 ·
depends ?, if you finance it ?, you will have to pay taxes. why ?, because you have to take the bill of origin to the revenue office, pay taxes, then they transfer it over to your name. as well as put it on your personal property. I say all of this, because I purchased my jet ski from MO, did not pay taxes there, but I had to pay taxes on it down here in Arkansas, because I had to list it on my personal property, pay taxes, then I could get my tags ( decals ) for it before I could put it on the water. once It was paid off, I then got my title ( bill of origin ) made out to my name. if you pay cash up front ?, and don't list it on your personal property ?, then yeah..you could get away from paying taxes on it..but..AND I MEAN A BIG BUTTTTTT !!!!!!!!..if your riding on federal land, and you get stopped ?, and they don't see that little sticker anywhere on the atv ?, this raises a red flag..and it might all come back to bite ya on the azz ?..hard to say..this is a play or pay here..lol.


I’m paying cash for 2 recons for my boys Christmas.


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Discussion Starter · #9 ·
So I just spoke with Alabama Department of Revenue. They said I do need to pay the sales tax directly to them since no title is needed. I asked them the tax rate and they said 2%. I asked her the penalty and she said up to 10% of “what is owed to the State” if it’s over $500 and only $50 if it’s under $500. I read where they can only go back 3 years. My tax will only be around $128. I may give it a few months and see if the bill me. I ant giving them a dime unless I have to.


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How does tax come into play in the USA, I’ve heard this a few times now and I’m a little lost I have to say.
We have a VAT system, end up paying 20% on top of everything we buy, is it similar to that or...?
 

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unless I hit the LOTTO I will never have to worry about the financial problems associated with purchasing a new one , but I listen to the guys that buy them over here in La. from Mississippi as BrookHaven Miss. is the cheapest place to buy a Honda , if you were here and paying cash , don't intend to register it and never intend to trade it in or sell it to someone that is going to try and register it , you " could " be ok ---- but your State has it's own set of rules and I am sure they would love to catch you and apply some interest and penalties ------like alloutdoors was saying about the penalties , one that I know they apply to us over here is , if you don't register it at the time of purchase and then have to register it later on , they charge you for every year of registration fees that they missed out on
 

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Discussion Starter · #12 · (Edited)
unless I hit the LOTTO I will never have to worry about the financial problems associated with purchasing a new one , but I listen to the guys that buy them over here in La. from Mississippi as BrookHaven Miss. is the cheapest place to buy a Honda , if you were here and paying cash , don't intend to register it and never intend to trade it in or sell it to someone that is going to try and register it , you " could " be ok ---- but your State has it's own set of rules and I am sure they would love to catch you and apply some interest and penalties ------like alloutdoors was saying about the penalties , one that I know they apply to us over here is , if you don't register it at the time of purchase and then have to register it later on , they charge you for every year of registration fees that they missed out on


Yup. Brookehaven is where I’m headed. 5 hour drive but saving about $2000. No intention of registering them. Even if the state gets me down the road it’s only gonna be like $180, lol I’m ok with that.

These local dealers won’t budge on their prices so I have no problem driving out of state. I can’t wait to see my boys faces Christmas morning.


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Small world isn't it , it is about 3 from here . A friend just got a 90 for his Grandkid from there , he saved $600 plus on it
 

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most states I know of , sort of run like this, IF its needed to be registered in YOUR state to be legally YOUR"S and to be used OFF your property
and the state you bought it from charged sales tax(OR NOT), when you register it in YOUR state , you pay sales tax of what ever your state charges.

NOW< some states will have a reciprocity on sales tax, meaning that IF in said state you BUY it in charges say 5% sales tax and your state charges 7 %, when you register in YOUR state, you will OWE the remaining 2 % tax ONLY
BUT NOT all states will do this some won;t count the tax you paid at ALL< and you will get doubled up on paying tax in BOTH states

SO< all things are based on each states rules
I contact your state DCNR dept, or who ever handles ATV's use in your home state and ask them!
you will then get the most accurate answer and NOT find out the hard way
 

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A couple friends of mine traded street bikes even up. And after they transfer'd the titles and registered there new bikes. They both got a letter from the State of Ohio tax dept. And had to pay tax on the blue book value of there new bikes! I also received a letter from them, after paying cash for my 2nd trx700xx and they tried to make me pay tax on over 7K! I told them I didn't pay that for my 1st one and bought it new off the show room floor 6 years prior. It was hard fought to get them to agree I only paid the $2500.

I have always herd when you buy out of state they can't tax you, but once you register you pay taxes. I also had a bad deal with a buggy I purchased awhile back. Long story I'll try and keep short, it was a lemon. I sued the dealer and manufacturer. My attorney received over 8 k from the manufacture, and a new scooter from the dealer. I was given some parts from dealer and my money back from manufacture. I was aloud to keep the buggies, it took several more months to receive the title. Then it was a fight to get it in my name, because the dealer never paid the sales tax that I was originaly charged and paid! I think I finally received the clear title 2 years after the law suit. By this time I had sold the buggy w/out a title, but I did contact the buyer and mailed it to them.
 

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My state charges 4.5% sales tax at title transfer if it’s a road worthy vehicle. They reserve the right to use the NADA estimate if you try to lowball them, but they don’t like call people liars

As a result I paid no sales tax for my 93 TRX300FW
 

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each state ( as mrbb said ^^ ) has its own laws. here in Arkansas, you can purchase a used motorcycle or car..or whatever ?, and if it's below 2600 ( I think this is the new guide line ? ), then you don't pay taxes on it. if its above 2600 ?, then when you take it to the dvm, they want to see a bill of sale, showing the paid price. I won't get into details on how to get around this..you figure it out..lol.
 

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How does tax come into play in the USA, I’ve heard this a few times now and I’m a little lost I have to say.
We have a VAT system, end up paying 20% on top of everything we buy, is it similar to that or...?
each state has its own tax limit on buying used or new toys. all depends on which state you live in ?. taxes can range anywhere from 2% to 20% ?, who knows ?..unless you live in that state !..lol. they charge you this amount on each dollar per 100 or 500..or whatever that state goes by.
 

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each state ( as mrbb said ^^ ) has its own laws. here in Arkansas, you can purchase a used motorcycle or car..or whatever ?, and if it's below 2600 ( I think this is the new guide line ? ), then you don't pay taxes on it. if its above 2600 ?, then when you take it to the dvm, they want to see a bill of sale, showing the paid price. I won't get into details on how to get around this..you figure it out..lol.

I bought a Jeep a few years ago. Paid $2K for the Jeep.

Went back to the same shop a few days later and bought a matching set of doors and a hardtop for $2K.

Pretty good deal on the top and doors.....:wink
 

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How does tax come into play in the USA, I’ve heard this a few times now and I’m a little lost I have to say.
We have a VAT system, end up paying 20% on top of everything we buy, is it similar to that or...?
Depends on the state.

We pay federal income tax.
Most states pay state income tax
We pay property tax (which includes land, homes, and any cars/trailers/farm/ boats/atvs. Since my ATV's are not used on public land, I feel no need to register them and pay property tax on them. If I have an old car in my yard, not being driven, I am expected to pay property tax on it. It's a sham. Property tax sickens me. We never own our property, we rent it from the state. If you don't pay, they seize your property and auction it off.
We pay sales tax, which is now 10.5% locally for me.

So instead of one VAT tax, we get hit all over in what effectively ends up being about a 40% tax rate for most people.

I am a strong proponent of a flat sales tax, even if it's 35% or so, if it means getting rid of ALL of the other crap. The rich consume more, and would thus still pay the overwhelming majority of taxes, but as things are we are nickeled and dimed from every direction. If people added up what they pay in taxes each year, taking into consideration ALL that we pay, we would have another revolution.
 
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