Help! Live In WI, Purchasing Vehicle In IL, Which Sales Tax???

[Booky]

I live in Wisconsin and made a deal on a 2018 Trackhawk today with a Dealership in Illinois.
I am going to trade in my SRT Durango on the Trackhawk on Tuesday.

The Dealership sent me a bill of sale with everything we agreed on but I noticed the sales tax was about twice what I expected. Wisconsin sales tax is 5.5 percent, and this was over double that.

I did some researching and it looks like Illinois just passed a new law last January which states something to the affect that only $10K of a trade-in can be deducted from the purchase price for sales tax purposes.

This should not affect me though, should it? I was under the impression that since I live in Wisconsin, I would only pay WI sales tax on the purchase price minus the full trade-in allowance.

Has anyone had to deal with this or know exactly how the sales tax should apply to me?

Any help or advice would be greatly appreciated.

.

 

[Steve@TF]

I believe the dealer will then refund you the sales tax and you will owe your state sales tax when you take it to your local dmv to register it.

My buddy just bought a new vette from back east and this is how it went. They fedexed him a check right after his car was delivered.


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[IA Shelby]

You should only pay the tax where the vehicle is registered. I bought my 2011 Shelby new in IL. I live in Iowa. I did not pay sales tax in IL.

that new law should only apply to IL residents.

 

[Kevins89notch]

The state where you buy the car, should do the math for the tax based on state you live in.

I flew from FL to LOL, I think Maryland (DC area), and bought my FiST there to save over 2K. The salesman was caught off guard on how to do FL taxes as he had never done that and had to look up some special documents. A month later I got a check in the mail from the dealership with a note saying they slightly miscalculated. The check was like $117, so nothing major.

 

[Booky]

Thanks for the responses. I will make sure the sales tax gets sorted out before signing any paperwork.

Hopefully I will have the Trackhawk parked in the garage Tuesday night.

 

[me32]

you wont receive registration till the sales tax is paid. Never heard of having to pay sales tax to another state just to get a refund. The dealership should be send the money to the state which it will be registered in.

 

[jshen]

I bought in Fla and the dealership sent paperwork to GA. All I had to do was go to my local tag office and taxes.

 

[RX1Cobra]

I live in IL and bought my last F150 in WI. I didn’t pay any sales tax in WI but was required to pay IL the sales tax when I registered it.

I also bought my snowmobile in WI. But it is only registered in WI so I only paid the lower WI sales tax. If I want to register in IL I have to pay IL the difference.

 

[venomous2004]

its not where u buy, its where u live (primary residence) or register the vehicle, now- different states have different ways of collecting tax so all of the above can be true.

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[08mojo]

Thanks for the responses. I will make sure the sales tax gets sorted out before signing any paperwork.

Hopefully I will have the Trackhawk parked in the garage Tuesday night.

View attachment 1662280

Love it, excellent choice.