vette67

Thanks. I think when you are talking about states that border each other, youve got a much better chance that your local tag office and the dealer has done this before and so you probably wont get screwed. But Georgia and Indiana are a long way apart and neither party had ever dealt with the other before.

My local tag office was too lazy to look up the actual law regarding Indiana and Georgia and the dealer was just telling me whatever I wanted to hear just to get the sale closed and now they figure there is nothing I can do about it.

ChrisLe

Yup. You bought the vehicle in Indiana and Indiana sales tax will be collected. That's how its done. What the dealership should not have charged you (assuming they did) was registration and title fees for Indiana, as you won't be registering it there. Also, they should not have charged you the title/registration fees for Georgia unless they are titling/registering it for you.

As the taxes in Georgia, what they collect varies from State to State. Some States, if the tax for the vehicle is higher than the State you purchased it in, will only ask for the difference if you can show you paid taxes in another State. Others don't charge any taxes at all and will just require reg/title fees. Too many options to be able to give you a decent answer. What does Forsythe County say?

vette67

Well it turns out that Georgia isn't! The "reciprocity agreement" between Georgia and Indiana covers that portion of the sales tax collected by the State. It does not cover the portion (if any) covered by the local governments (County, City, etc). So technically it is my County that is requiring the 3% from me now. But they never told me this when I asked them before I bought the car. And they insist that the dealer "is supposed" to send them that 3%... but of course I am ultimately responsible for it.

ChrisLe

The dealer is supposed to sent them the 3% but only IF they collected 3% (above and beyond the 7% Inidiana sales tax rate) on behalf of Georgia. If they did not collect that 3% (which they didn't), then you will have to pay it..

vette67

What they said when I called them before going all the way to Indiana to buy the Jeep was that Indiana would collect the sales tax for them and then send it to them. Since they and my County both had the same tax rate, it was supposed to be a wash.... I would not have to pay any additional taxes.

What they say now that the dealer refuses to send them anything at all is that Indiana "shouldn't have" collected the 3% local portion of the sales tax (4% State +3% Local = 7% total sales tax collected) but since they did and are not now willing to give it back that they are breaking the law but they (my tax commissioner's office) cant enforce the law on them and if I want my title and tag I need pay an additional 3% ($1015.00 ) by the end of the month.

vette67

Its my understanding (and I could be wrong.... I still need to call the Indiana Dept of Revenue) that the 7% they collected for sales tax breaks down like this:

4% Indiana State sales tax
3% Local sales tax

My local tax office says that they shouldn't have collected that 3% and that they are supposed to give it back. But they wont.

Mariner

There must be some one on this forum who would enjoy visiting this dealership,

jeepmont

For some states the reciprocity agreement does not apply to motor vehicles. Apply for a refund of the tax paid to the state of Indiana. Complete an Indiana tax refund claim form and provide them with your invoice showing Indiana tax paid and your ga sales tax paid on the vehicle... The dealership is required to turn over all sales taxes paid to the state tax dept even if they were erroneously collected.... I used to be a sales tax auditor for nys...

Pluke the 2

I feel a big big tax write off in a year from your purchase.

vette67

Well alright! That sounds good to me! I'm calling the Indiana Dept of Revenue and requesting forms and instructions. Thanks! I hope it works!