[sealy_00]

Hi all,
Does anyone know the answer to the following as far as taxes and laws. I am a NH resident and bought a new car sales tax free recently in NH. Just bought a house in VT, waiting for closing date. If I move there within 60 days of car purchase, and I attempt to register car in VT will they try to make me pay sales tax since I bought car pretty recently?

Thanks for any replies.

[skeddy]

yes, you pay the tax where the car is registered not where it was bought.

[sealy_00]

Hi Skeddy and thanks for replying,
I do not mean car registration taxes and fees. I mean the car purchase in New Hampshire just a few weeks before moving to new home in Vermont. I wonder if Vermont will try to collect SALES TAX on the purchase of the vehicle when I establish residency in Vermont, saying the car purchase was so recent to the move that I now owe Vermont sales tax of $2500.

Anyone have any idea how that works?

[vter]

All the info is on the DMV website https://dmv.vermont.gov/tax-title/vehicle-taxation
So yes, since NH does not have a sales tax, you will have to pay it when you register your car in VT.

[Boston_Burbs]

Do they compare your bill fo sale to what they think the car is worth in VT? In MA they do that and choose the higher amount but MA has excise tax so they probably have a robust data base.

But yes, you will pay sales tax unless you can prove you paid it to your last state which in the case of NH you didn’t.

[GeoffD]

Originally Posted by sealy_00

Hi Skeddy and thanks for replying,
I do not mean car registration taxes and fees. I mean the car purchase in New Hampshire just a few weeks before moving to new home in Vermont. I wonder if Vermont will try to collect SALES TAX on the purchase of the vehicle when I establish residency in Vermont, saying the car purchase was so recent to the move that I now owe Vermont sales tax of $2500.

Anyone have any idea how that works?

Generally, you pay sales tax on the blue book value of the car. I’ve done NH to VT but the car was 3 or 4 years old. I’d guess on a car bought new within a few weeks, you would pay tax based on the bill of sale when you bought the car. Vermont motor vehicles is very responsive. Call them and ask.

[Ted Bear]

Yup. Just had the wonderful experience. You will pays Vermont sales tax when you register the car in Vermont. It hurts !

[jackmccullough]

Yes, when I moved to Vermont from Michigan in 1983 I had to pay the use tax on the value of the car at that time, with no allowance for the sales tax I paid in Michigan.

Then another lawyer who had had the same experience sued the state of Vermont and won, and I was able to get a refund.

So if you buy a vehicle in another state and pay a sales tax there you will get credit to your Vermont use tax. Of course, you don't get the benefit of this if you didn't pay a sales tax where you bought it.

https://caselaw.findlaw.com/us-supre...rt/472/14.html

[karen_in_nh_2012]

One more reason NOT to move to Vermont.

Sorry, OP, I know that sounds facetious, but geez ... you were a New Hampshire resident when you bought a car in New Hampshire, but you move and you have to pay SALES TAX on it in your new state -- even though you DID NOT buy it there? What a money-grab. (Or I guess they call it USE TAX to distinguish it from SALES TAX? Hmmm. )

Maybe I've lived in New Hampshire too long, but I find that pretty appalling.

[GeoffD]

Originally Posted by karen_in_nh_2012

One more reason NOT to move to Vermont.

Sorry, OP, I know that sounds facetious, but geez ... you were a New Hampshire resident when you bought a car in New Hampshire, but you move and you have to pay SALES TAX on it in your new state -- even though you DID NOT buy it there? What a money-grab. (Or I guess they call it USE TAX to distinguish it from SALES TAX? Hmmm. )

Maybe I've lived in New Hampshire too long, but I find that pretty appalling.

Not really. I had property in both NH and Vermont. I used to game it. The crossover is at 3 years. It was cheaper to pay 3 years of property tax and high registration costs in Portsmouth NH and then pay the sales tax in Vermont on the blue book value of the car in Vermont. Vermont doesn’t require residency to get green plates. I always had one new NH car and one older VT car in the driveway. With today’s crazy used car prices, the math is probably different but it’s certainly cheaper to own an older car in Vermont than New Hampshire. Registration is much cheaper and the inspection fee isn’t a big expense. Insurance is similar.

Back in the day, Vermont used to cap vehicle sales tax at $20k. If you drove a really expensive car, Vermont was cheaper than NH if you owned the car for several years.