Quote:
Originally Posted by RockCrusher
Be aware at least based on what I was told BMW "requires" sales tax be collected if the vehicle is financed. While I was not financing any of these out of state purchases every dealer initially wanted to collect sales tax. A few claimed the collected tax would be forwarded to Arkansas.
I spoke with someone at the Arkansas Department of Finance. I was told if I pay the sales tax to an out of state dealer the odds are the dealer would *not* send this to Arkansas. When I showed up to register the car I'd be required to pay the Arkansas sales tax and then file for a refund to try to get the sales tax back that was collected. I would probably not be successful. I was told Arkansas had no agreement with any state regarding sales tax collection/forwarding.
So if you are considering buying a car out of state you need to research how sales tax is handled by the selling dealer and your state. Otherwise you could find yourself paying sales tax twice...
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I shouldn't comment any further. I'm not trying to soil the image of BMW now that I'm coming into the brand, but I had one dealer try to apply some City 'Vehicle Use Tax.'
https://www.phoenix.gov/finance/plt/...ehicle-use-tax
Now, correct me if I am wrong, but I see nowhere in that description stating that simply purchasing a vehicle in Phoenix requires collection of this tax. In fact, there are clauses citing that if the car is parked in a driveway outside of Phoenix that you are also exempt.
The salesman tried to convince me that simply driving the vehicle off the lot on the streets of Phoenix meant they had to collect the tax. That, frankly, sounds like extremely poor judgement to make such a claim if it is not accurate. They also insisted upon financing some portion of the vehicle price. That may also be tied to trying to collect more taxes on the car.
They also added $5k over MSRP on a car they had to offer. I was offended by the way they handled it frankly.
It would seem like falsely claiming to collect taxes should be a crime, but maybe it isn't. I just hope others will be more aware based on these experiences.