Buying a vehicle in Texas for tax savings | TigerDroppings.com

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gptigerfan
LSU Fan
Covington
Member since Oct 2007
723 posts

Buying a vehicle in Texas for tax savings



Is it possible to use a relatives address in TX to initially register the vehicle and then switch the registration to LA to save the sales tax?






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Broke
LSU Fan
AKA Buttercup
Member since Sep 2006
56672 posts

re: Buying a vehicle in Texas for tax savings


Seems like a pain in the arse to me.





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gptigerfan
LSU Fan
Covington
Member since Oct 2007
723 posts

re: Buying a vehicle in Texas for tax savings


It may be, but it would save around 2K





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tigerrocket
LSU Fan
Member since Aug 2008
90 posts

re: Buying a vehicle in Texas for tax savings


Texas has a sales tax.





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Ace Midnight
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Currently asymptomatic
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re: Buying a vehicle in Texas for tax savings


quote:

Texas has a sales tax.


Yes - the OP may be confusing Texas' lack of a state income tax.






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gptigerfan
LSU Fan
Covington
Member since Oct 2007
723 posts

re: Buying a vehicle in Texas for tax savings


quote:

Texas has a sales tax.


My bad. I was confused with the income tax






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tigeraddict
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Baton Rouge
Member since Mar 2007
4790 posts

re: Buying a vehicle in Texas for tax savings


You will have to pay a high price to switch the tags from Texas to LA as well.....


This post was edited on 6/9 at 2:29 pm


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Janky
LSU Fan
Team Primo
Member since Jun 2011
8348 posts

re: Buying a vehicle in Texas for tax savings


It won't work.





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mkibod1
LSU Fan
South of the Donna Dixon Line
Member since Jan 2011
2761 posts

re: Buying a vehicle in Texas for tax savings


If you buy in Texas then transition it over, you will have to pay a certain % of the cars blue book value in taxes to LA. In the end, you will probably pay more to go through Texas, seeing as they do also have a sales tax. It is a smidge lower at 8.5% vs. LA's 9%, but its a wash once you factor in the cost to change it over.





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Lsut81
USA Fan
Member since Jun 2005
64954 posts

re: Buying a vehicle in Texas for tax savings


quote:

Is it possible to use a relatives address in TX to initially register the vehicle and then switch the registration to LA to save the sales tax?




Would be a pain in the arse to save the 2% difference from 6.25 to 8.25... Plus, when you do register in La, you are going to have to pay an initial tax and registration fees.

So if you saved $500 on the purchase, you will likely only make out saving a few hundred and that isn't worth the headache.






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Jcorye1
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re: Buying a vehicle in Texas for tax savings


Lol. The dumb shite people will do to not pay LA taxes.





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AndyJ
Member since Jul 2008
617 posts

re: Buying a vehicle in Texas for tax savings


When we moved to the Peoples Republic of Maryland in 2006, when we registered our cars, we had to pay the difference between the tax we had paid out of state and Maryland's tax. It came out to a few hundred bucks.





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yellowfin
Illinois Fan
Coastal Bar
Member since May 2006
71268 posts

re: Buying a vehicle in Texas for tax savings


This doesn't get you out of taxes, let's talk about the dumb shits at la dept of rev that harassed me for a year over income tax they wanted from 3 years I lived in Texas.





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mkibod1
LSU Fan
South of the Donna Dixon Line
Member since Jan 2011
2761 posts

re: Buying a vehicle in Texas for tax savings


quote:

harassed me for a year over income tax they wanted from 3 years I lived in Texas.


Government retardation at its finest right there haha






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lsujro
LSU Fan
BR
Member since Jul 2007
2240 posts

re: Buying a vehicle in Texas for tax savings


if you buy a car anywhere outside of LA and then register it here, you pay the difference in out of state sales tax and sales tax in your area. i think there is an exemption for active military.





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Jcorye1
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Tom Terrific (greater than) Brees
Member since Dec 2007
30037 posts
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re: Buying a vehicle in Texas for tax savings


quote:

This doesn't get you out of taxes, let's talk about the dumb shits at la dept of rev that harassed me for a year over income tax they wanted from 3 years I lived in Texas.



The same thing happened to my dad, you have my sympathy . He ended up having to get a legislature member involved :/, they wouldn't even budge when he showed adequate proof of domicile AND employee clock in/clock out records from his old company in New Hampshire for that time period.

Be honest though, how is this not going over the top to avoid taxation? Plus, why would you want your money to be used in another state?






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Cracker
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in a box
Member since Nov 2009
5550 posts

re: Buying a vehicle in Texas for tax savings


I set up a Montana LLC it's cheep





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yellowfin
Illinois Fan
Coastal Bar
Member since May 2006
71268 posts

re: Buying a vehicle in Texas for tax savings


quote:

Posted by Jcorye1 quote: This doesn't get you out of taxes, let's talk about the dumb shits at la dept of rev that harassed me for a year over income tax they wanted from 3 years I lived in Texas. The same thing happened to my dad, you have my sympathy . He ended up having to get a legislature member involved :/, they wouldn't even budge when he showed adequate proof of domicile AND employee clock in/clock out records from his old company in New Hampshire for that time period. Be honest though, how is this not going over the top to avoid taxation? Plus, why would you want your money to be used in another state?


Because if he registers it in Texas then moves it to LA he'll have to pay the difference in sales tax when he does so no savings






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Jcorye1
LSU Fan
Tom Terrific (greater than) Brees
Member since Dec 2007
30037 posts
 Online 

re: Buying a vehicle in Texas for tax savings


quote:

Because if he registers it in Texas then moves it to LA he'll have to pay the difference in sales tax when he does so no savings



Oh I didn't say he was going to be successful, I'm just saying it's an over the top way to try to avoid taxes.






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Nawlens Gator
Florida Fan
louisiana
Member since Sep 2005
2414 posts

re: Buying a vehicle in Texas for tax savings



I flew to Houston in Jan '06 to buy my truck for several thousand less than all the jackasses in LA wanted ($120 plane fare), then drove it back (temporary tag and drove it for a year). Don't think I paid any Tx taxes. Dealer filled out all the paper work to register it in LA and pay LA tax. Dealers in LA can't touch prices in Houston which saves more than any tax savings (tax savings I don't think are possible).







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