[ZL1CK_Guy]

So, long story sort of short:

Recently purchased a used 2021 ZLE out of state in Indiana. After negotiating, I agreed to pay 82k after taxes and fees. The dealer asked for my exact zip code (NY) where sales tax is 8.875%.

The original buyer’s order lists the state sales tax at NY value. When I went to finalize my permanent license plates at the DMV, I had to pay an extra 3k+ in state taxes. The 2nd buyer’s order provided listed the sales tax at half of what the original agreement and the rest was added to “additional fees”.

I’ve attached pictures of the original buyer’s order (provided to the bank for financing) and the secondary agreement provided to the DMV. I’m almost sure they are swindling me, but wanted to get some insight on what actions I should take to get my money back.

[WhiteMale]

That is definitely suspicious. When I bought my car out of state we had a little problem in getting the correct tax rate and I've had that problem before with another dealer in the past. We ended up using Beacon(?) to title it out of state and got the correct tax amount and I paid with two checks, one for the principal from my bank and a second check that I paid that TTL with.
$3K in other fees...wow

[MatthewAMEL]

Maybe...is not a particularly helpful answer. I purchased a Camaro from New York and had it shipped to Colorado. About a month after car arrived and all the paperwork had cleared, the NY dealer sent me a check for the difference in taxes/fees I had overpaid. Perhaps this dealer will do the same?

[GearheadSS]

Sure looks like it. If they never sent that extra $3,763 to your state DMV then they definitely pocketed it. First, I'd find out how much they actually sent to your local DMV. If they didn't pay the full amount from the first buyer's order, I'd hit them up about it and ask them to send it to you since you already paid the DMV for the difference.

[Kblanton2]

I bought mine out of state and the only amount I gave that dealer was MSRP in a check. Once I got to my local tag office I paid them the sales tax. Easiest purchase I ever made at a dealership.

[Kevin0311]

Need to get your money back from dealer, if you allready paid nys dmv that is finalized, if you still on temp tag waiting to fix then have dealer send you correct paperwork showing sales tax collected not fees
Either dealer did knowingly or made mistake.
I have bought several cars out of state and brought back to ny and some know how to do things some dont
https://www.tax.ny.gov/pubs_and_bull...eciprocity.htm

https://www.in.gov/dor/files/sib28s.pdf

NH took full tax amount paid nothing in ny
Ohio only paid there tax rate then paid difference when reg in ny
TN took full amount and then cut us dealer check to pay ny when gpt back to ny

[SATINSTEEL1LE]

Bought my car in ATL and I live in FL. They collected taxes and tag and so on. Then they pay it to a third party title/tag company that does all the out of state paperwork. Thats probably what will happen. Then if there is an overage, it will be sent back to the dealer then they will cut you a check back. I got $450ish back because the dealer over collected on me. They did not hesitate to send it back. Nice surprise.

[ST1LE]

Originally Posted by SATINSTEEL1LE

Bought my car in ATL and I live in FL. They collected taxes and tag and so on. Then they pay it to a third party title/tag company that does all the out of state paperwork. Thats probably what will happen. Then if there is an overage, it will be sent back to the dealer then they will cut you a check back. I got $450ish back because the dealer over collected on me. They did not hesitate to send it back. Nice surprise.

Same experience here, less refund sadly haha.

[WhiteMale]

Originally Posted by SATINSTEEL1LE

Bought my car in ATL and I live in FL. They collected taxes and tag and so on. Then they pay it to a third party title/tag company that does all the out of state paperwork. Thats probably what will happen. Then if there is an overage, it will be sent back to the dealer then they will cut you a check back. I got $450ish back because the dealer over collected on me. They did not hesitate to send it back. Nice surprise.

That was my out of state buying experience to include a small refund.

[ZL1CK_Guy]

Originally Posted by GearheadSS

Sure looks like it. If they never sent that extra $3,763 to your state DMV then they definitely pocketed it. First, I'd find out how much they actually sent to your local DMV. If they didn't pay the full amount from the first buyer's order, I'd hit them up about it and ask them to send it to you since you already paid the DMV for the difference.

A little more context

We did receive a check from the dealership for just slightly less than the 3,763. The original agreement was to collect taxes to pay my state (NY). BUT, apparently Indiana is a nonreciprocal tax state, which the dealer was “unaware” of, so they adjusted the tax amount on the buyer’s order without notifying me.

The $3,009 taxes on the adjusted BO went to Indiana state, then the refunded check amount of $3,728 was used to pay NY state, but I still owed over 3k on top of that to NY.

I’ve basically paid $10k just in taxes on this car. If I had known beforehand that I would be paying an extra $3k I would’ve rethought going through with the purchase.

[LStick]

Originally Posted by ZL1CK_Guy

A little more context

We did receive a check from the dealership for just slightly less than the 3,763. The original agreement was to collect taxes to pay my state (NY). BUT, apparently Indiana is a nonreciprocal tax state, which the dealer was “unaware” of, so they adjusted the tax amount on the buyer’s order without notifying me.

The $3,009 taxes on the adjusted BO went to Indiana state, then the refunded check amount of $3,728 was used to pay NY state, but I still owed over 3k on top of that to NY.

I’ve basically paid $10k just in taxes on this car. If I had known beforehand that I would be paying an extra $3k I would’ve rethought going through with the purchase.

When I was shopping for mine, Indiana dealers were sort of a mixed bag when it came to sales tax and add on fees .

And dealers that didn't want to sell out of state .

[Kevin0311]

You provided bill of sale showing sales tax paid in Indiana with ny paperwork, proof of paying 3009 all ready? With proof and forms should have only had to pay the difference

[super_sxxy322]

Indiana is not a good state to buy when you live out of state. Unfortunately you're paying both states sales tax. Being in the business I try to help with these questions but haven't dealt w/ IN. A quick Google search brought up some information though.

https://www.in.gov/dor/files/sib28s.pdf

https://www.in.gov/dor/files/reference/sib84.pdf

It looks like IN is only supposed to charge a NY customer 4% (just the state tax, not your county tax) to send to IN and your regular 8.875 to NY. (I think that's what I'm getting out of this link... )

https://www.in.gov/dor/business-tax/dealer-information/

Be sure to present the taxes paid to your accountant at tax time as they can be used as a deduction.

Edited bc I looked at more numbers... that 3009.10 is the 4% they need to send to IN. So it looks like they did things right. It's just unfortunate Uncle Sam is money hungry.

[ZL1CK_Guy]

Originally Posted by super_sxxy322

Indiana is not a good state to buy when you live out of state. Unfortunately you're paying both states sales tax. Being in the business I try to help with these questions but haven't dealt w/ IN. A quick Google search brought up some information though.

https://www.in.gov/dor/files/sib28s.pdf

https://www.in.gov/dor/files/reference/sib84.pdf

It looks like IN is only supposed to charge a NY customer 4% (just the state tax, not your county tax) to send to IN and your regular 8.875 to NY. (I think that's what I'm getting out of this link... )

https://www.in.gov/dor/business-tax/dealer-information/

Be sure to present the taxes paid to your accountant at tax time as they can be used as a deduction.

Edited bc I looked at more numbers... that 3009.10 is the 4% they need to send to IN. So it looks like they did things right. It's just unfortunate Uncle Sam is money hungry.

Thanks for doing the research. Yeah I’m definitely talking with my accountant now to see if I can get a credit.