MyMopar

I think you have a valid case against the dealership. I bought my Jeep out of state. They charged me my states sales tax (6%) and collected it. They gave me a NJ temp tag and they are going thru all the hassle of getting me my state hard plate.

It is my firm belief that when purchasing a vehicle, the sales tax is collected at the time of registration in the vehicles permanent home state.

I believe that the dealership in IN is breaking the law and they owe your state the tax revenue. Contact your state attorney about this and see if they can assists, after all your taxes pay their wages and they should lend a helping hand.

Some info to get your ball rolling:

You may present your complaint to the Dealer Division by filing a complaint form. Then fax the form to (317) 591-5319 or mail it to:

BMV Dealer Division
6400 E. 30th St.
Indianapolis, IN 46219
The division is especially helpful with some issues, like getting a tardy dealer to deliver the title.

If the division doesn't resolve the issue to your contentment, you may have to hire an attorney.



***EDIT***
After a quick search, it seems that IN sucks. According the the Indiana Tax Bulletin issue #28S
INTRODUCTION
The sale of any motor vehicle or trailer shall be subject to the sales/use tax unless such transaction is entitled to a statutory exemption as shown on Form ST-108E.
If a motor vehicle or trailer is purchased from a registered Indiana dealer, the dealer must collect Indiana sales tax and provide to the purchaser a completed Form ST-108 showing that the tax has been paid. If the purchaser claims an exemption and tax is not collected by the dealer, the statement at the bottom of Form ST-108E must be completed disclosing the reason code for exemption and must be signed by the purchaser. When a purchaser claims an exemption on Form ST-108E, the dealer must retain a completed copy of the ST-108E exemption certificate to document the exempted sale. An exemption form ST-105D may be used to document dealer-to-dealer sales sold exempt for the purpose of
resale.

General Application of Sales Tax:
ALL SALES of motor vehicles and trailers purchased in Indiana are subject to Indiana sales tax. This includes sales where the purchaser intends to immediately register, license, or title the motor vehicle or trailer for use in another state.

So why the dealer should have been up on the laws more for your situation, they apparently are in the right. It is strange though because I really thought that the sales tax goes to the state the vehicle is registered in as in my case. I have bought cars from FL, OH and NJ and never once paid that states sales tax AND mine, only paid my states sales tax and that is it.

You should have gotten that form ST-108 showing the tax you paid, in my state if I did pay out of state sales tax, providing them proof of that they waive paying it and I only make up the difference (if less than 6%).

In the end, the warning really should be to check your states local motor vehicle tax laws and the state you are buying in. The dealerships are not tax accountants and are there to sell cars so a buyer must beware when it comes down to the whole where does the tax go?

MyMopar

Just to point out that this statement is not entirely true. In this thread it is found that certain states collect sales tax on vehicles sold in their state whether or not they will be registered there (IN as an example) while others collect no sales tax unless it is registered in that state (NY, CT, PA, NJ as examples)

Other people here as myself have first hand experience buying out of state and registering in another state. I DID NOT pay sales tax to the state I bought my vehicle in (from a dealer), only the state I registered it in (which the dealer did for me). So the sales tax laws/rules vary from state to state and is something that needs to be researched so it doesn't catch people off guard. Because I never had a situation where I paid sales tax to one state and then another, I assumed they all worked that way, but now I know better and learned something new. Double taxation by those states seems real shady, but apparently legal.

TheDoubleD

You can use something like spoofcard.com to record a call. It is very powerful and should not require court after the dealership reads the transcripts of the recorded call. Just be aware that some states require one party consent (like NJ) while others require two party.

Anytime I feel that somebody may be shady I will record the call. At the least I have accountability. I had an issue with my son's doctor when he needed minor surgery that he said would be covered. I was put into collections for $1,300. That changed once I had the audio transcribed and sent a certified copy to the collection agency and doctor. Without this I would still be paying off that bill. Very Powerful Tool.

FalconKR5

Sorry about the troubles...

I purchased my Jeep out of state (Michigan) from Kahlo in '09 and did not have any issue. Final "out the door" price was negotiated before I arrived over the phone and was honored when I got there. They collected the 7% sales tax (but no tag, registration fee, etc.) and I had no problem registering it in MI (where I did pay the registration fee, but no more tax). Like you I could not find the vehicle I wanted in town, so I drove 3.5 hours to go get it in Noblesville, IN.

mbjeepxj

why didn't you negotiate with your local dealership to do a dealer transfer/trade with the dealership in Indiana? Years back our Jeep dealership located the exact Liberty Renegade my wife wanted in another state for me. Then they went and got it and hauled it back on a truck. I only had do deal with my dealership and they did all the leg work on getting the out-of-state vehicle back here so they could sell it to me.

I'm not exactly sure how they negotiate between dealerships, but I'm sure they either just paid that dealer cost, or traded another similarly priced new vehicle.

anyway, sorry for your luck... the only vehicle I've ever bought out-of-state was a private sale, and I had to pay the tax when I registered based on the bill-of-sale amount...

vette67

My local dealer did a search and couldn't find what I wanted anywhere else, so he was trying to get me to buy what he had instead.

I got on the internet and in 15 minutes had located what I was looking for. Then I found out that I could fly there for $100 and drive the car home, instead of paying $600-900 transport fees to get that car delivered to my local dealer.

interceptor_1972

This is what I was referring to - Sales Tax varies from state to state, and if you buy a vehicle or product in that state, they will have to collect the sales tax for said vehicle or product. When it comes to using the vehicle or registering it in another state, you'd have to pay the dues there - either in full or partial, depending on what that state's laws might be for out-of-state purchases. Also, keep in mind that there is a slight variation for Active Military personnel.

I'd not heard of that before, so apparently, I learnt something new as well. To the best of my knowledge, a dealer in the state that charges a State Sales Tax will collect that sales tax on the transaction - either built into the deal/finance, or separate. The only exception to that, I believe (and I may be wrong), is if you're Active Military. The only thing I was trying to lead to in this particular case is that by collecting Sales Tax, the Indiana Dealer does not appear to have broken any laws. However, it does appear that they did a piss poor job of communicating this to the OP before he did the paperworks. All said and done, this does go to prove that there are various laws and rules that vary from state to state, and in the end, it is the consumer's responsibility to research it before making their buying decision - because, in the end, the consumer is the one left with the vehicle they bought that now needs to be registered. What often looks like a great deal on one end may end up costing more on the other .

jennekin

I live close, I can go beat the 3% out of him if you want me to....

vette67

Sounds reasonable. Who could argue with that? Except what happens when you DO research it and are given false, incomplete or misleading information?

Looking back on it, I'm not sure what else I could have done except to contact the Indiana Dept of Revenue in advance. However, I think its reasonable that most people would be satisfied that they were okay after getting assurances from their own tax office and from the dealer.

I'm still trying to get through to the Indiana Department of Revenue...

UPDATE:
I talked to an attorney in the Indiana Dept of Revenue. Here is what he determined:

For the purpose of the Law, it is important to distinguish between a "Sales" tax and any other kind of tax. Indiana has no local sales tax. So that 7% that the dealer collected was all for the State. They did fill out an ST-108 that documents that payment and I'm sure that they will send it in to the State of Indiana the way they are supposed to.

The "reciprocity agreement" between Georgia and Indiana gives credit for State sales taxes paid, but only up to the amount of the Georgia State sales tax, which is 4%. That extra 3% is a Local "use" tax and is imposed by my County. And gosh I feel so much better; it's not a double-taxation Sales tax they are hitting me with, its a USE tax! Silly me!

Yes Micheal Ryan, the internet sales manager at Kahlo Chrysler Jeep led me on and either didn't bother to check the law or knew what it was and just did not tell me.

But Forsyth County is the final culprit here. As someone here already pointed out, a car dealer is not a tax accountancy. And Forsyth County could waive this charge if they wanted to.

They told me before I flew to Indiana to buy the car that there would be no extra costs to me. I won't say they lied, but they just didn't bother to check what the deal is with Indiana. They were used to dealing with Alabama or Florida or Tennessee. I'm going to get back in touch with Mathew Ledbetter, the Forsyth County Tax commissioner and ask him again to waive that 3% tax, since it was his office that told me wrong.

interceptor_1972

I fully agree with you on this - and from what you mentioned, you did over and beyond what you could've possibly done in this situation. I don't see where I'd have done any more than what you'd already done, had that been me. So, from the looks of it, you'll be liable for the 3% County Tax for Forsyth County. You could talk to your DA and see if they'll get the County to waive it seeing as you already paid the 7% in IN. A slim chance at best, but a chance nonetheless. I'm just glad we don't have these issues here in Oklahoma. I like the KISS (Keep It Simple Stupid) better than all the legalities with different state and county laws and regulations.