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Tuesday, March 1, 2011

About I'm a New Jersey resident, but work in New York City. I'm planning to buy a car from a dealership in NY.

I'm a New Jersey resident, but work in New York City. I'm planning to buy a car from a dealership in NY.
My dealer told me that I will have to pay NY City Sales Tax (8.625%) for the car, since I work in "The City", even though my car will be registered in New Jersey. New Jersey tax is 6%. Can someone please confirm this? Thanks. My dealer told me that I will have to pay NY City Sales Tax (8.625%) for the car, since I work in "The City", even though my car will be registered in New Jersey. New Jersey tax is 6%. Can someone please confirm this? >>>> Thank you all for your response. The issue is not where I buy the car, but where (DMV) I register it. The sales tax will be charged by the DMV (in my case New Jersey DMV). What I find suspicious, is that my dealer says that "where I work" matters. If I was working in New Jersey, I would have had to pay the 7% tax. But since I work in New York City, I have to pay the 8.625 City Tax.
Buying & Selling - 5 Answers
People's Answers, Critics, Comments, Opinions :
Answer 1 :
If you buy it in the city you have to pay the city tax.
Answer 2 :
Yes, you will have to pay a higher tax in NY, so why not buy the car in New Jersey instead? (New Jersey tax is now 7%. It used to be 6%.)
Answer 3 :
Just like how NJ doesnt have clothing tax and people from NY come here to buy clothes without tax, if you go over there any buy something, you have to pay the tax. And as far as I knew, NJ tax was raised to 7% last year.
Answer 4 :
for luxury cars u pay 7.04% tax not the flat 7% tax for the rest of the cars
Answer 5 :
You are getting a lot of misimformation. Cars are not like clothing in the US and are treated differently. Regardless of what state you buy a vehicle in, the tax you pay on the vehicle is based on where you register the vehicle (where you live). People do it on Ebay every day. In your situation, you would definitely pay the NJ Sales tax, which sounds like it is 7% now. I would be very suspicious of this car dealer. It sounds like they are trying to trick you into paying more for the vehicle. They pass it off as a 'tax', but it sounds like it is actually a profit. If this is what they are doing, it is actually illegal. Personally, I would shop elsewhere. There are too many honest dealers to put up with junk like this

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