Kentucky Vs Ohio Car tax

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If I live in kentucky and buy a car in Ohio, which tax should i pay?

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kentucky

What kind of tax? You'll pay taxes on the sale in Ohio, but property taxes in Kentucky.

If Ohio is sneaky, they'll make you pay property taxes there, too....

You will pay the sales tax in Ohio, and if it is less than Kentucky's you'll pay the difference. If it's the same or more you'll not pay any sales tax to KY. At least that's the way it worked in 2004 when I bought a vehicle in MD and then moved it to KY.

Gosh I'm glad I live in a state that doesn't do property tax on personal vehicles.

WTF property tax on cars? What kind of communist crap is this? Do they at least let you write off car depreciation off your state income taxes?

WalStMonky said: You will pay the sales tax in Ohio, and if it is less than Kentucky's you'll pay the difference. If it's the same or more you'll not pay any sales tax to KY. At least that's the way it worked in 2004 when I bought a vehicle in MD and then moved it to KY.

I think this is only applied when you move and you purchase your car less than 1 year. If you you live in state A and go to buy a car in state B, you will need to pay tax base on state A.

Edit: call the dealer

SimpleMoney said: WTF property tax on cars? What kind of communist crap is this? Do they at least let you write off car depreciation off your state income taxes?


Remember that mobile homes are considered vehicles (even after they've been permanently attached to the ground). If Kentucky couldn't tax trailer parks, the loss of income would sink us

In KY it costs a fee of $1 to switch from a motor vehicle title to a deed after you attach your mobile to a permanent foundation. The definiton of a 'permanent' foundation is very easy and cheap to meet. It is not considered a vehicle afterward, and indeed qualifies for mortgage financing. You can make pretty good money buying older mobiles for dirt on the dollar and turning them into houses. But the people you have to deal with! Good lord I thought the term 'trailer trash' was a stereotype before I did my bit in KY. Oh, BTW trailers in KY are taxed as real estate once they're bought and paid for regardless of their foundation.

The Kentucky Manufactured Home Association is arguably the most powerful special interest group in Frankfort.

nd said: If I live in kentucky and buy a car in Ohio, which tax should i pay?
Indiana.

ND said: If I live in kentucky and buy a car in Ohio, which tax should i pay?
ANSWER: Depends on the laws of Kentucky.

If you live in Kentucky, that state will require registering the vehicle in that state including Kentucky license plates. When you bring the car in for vehicle registration, most states will charge "use tax" on the sales price (or estimated value) of the out-of-state vehicle purchase.

Some states will exempt you from "use tax" if you lived out-of-state for a period of time (i.e. six months or longer). Some states will reduce the "use tax" amount by the amount of sales tax you paid buying the vehicle in another state.

Technically speaking, most states require residents to pay "use tax" on any goods they acquire out-of-state or even out-of-country. There isn't a practical means for states to enforce "use tax" on most personal purchases, except for titled goods such as motor vehicles, travel trailers and motorcycles which must be registered and licensed to be used in your state.

BTW most states can be very harsh on residents who bring an out-of-state vehicle in without changing the license plates and registration. Don't run the risk of expensive fines, it's not worth the money you theoretically could save.



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