Welcome to Vermont!

[MeredithMan]

So some of you may recall a prior post I put up back in the Springtime about my son moving to Vermont and looking for a place to live. Ultimately, that was sorted out and he moved in to a great place in Rutland and has been enjoying his job at GE and getting to know his new surroundings.

Back in March, not yet having secured the GE job in VT, but knowing he would need a car upon graduation, he bought a new Honda Pilot SUV here in NH. He registered it in NH, since he anticipated living with his mom and me. He got the GE VT job, moved over there, and last week finally went to register the car in VT. Much to his surprise, (and to mine and his mother's), he had to fork over $2400 in VT state sales tax on the car in order to register it!! (6% sales tax X $40K value).

He told the DMV person that he didn't try to pull a fast one by buying the car in "no sales tax NH"...he was actually living here and didn't know he would end up in VT and that it was completely unfair to pay VT sales tax when nothing about his car purchase had anything to do with VT. He ended up maxing out his two credit cards in order to pay the sales tax! The DMV person said they give you credit for the sales tax you paid in the previous state where you bought the car, but since NH doesn't have a sales tax, "you have to pay ".

The rules are the rules, but it's really outrageous!

[thinkxingu]

How long does that requirement exist, and why not keep it registered in NH until then?

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[tis]

You have to pay the sales tax in Fl too if you register a NH purchased car there. On the other hand if you buy a car in Fl and register it in NH you don't pay the sales tax.

[Outdoorsman]

Over time it will work out to be about the same $ as it would cost him to continue registering in NH. His annual registration in VT will be something like $70 VS $300+ that he could be paying in NH.

Also notable, when he files his VT State Tax Return, there is a line on the form for him to claim/pay the 6% VT sales tax on items he bought in NH. Examples would be furniture, household appliances or a lawn mower....

[MeredithMan]

He has a two year commitment to GE in Rutland, as they gave him a relo pkg and he's in an Engineering Development Program. After two years, he can either stay there, or transfer to a different GE facility. Since it was that length of time, we decided he should play by the rules and get a VT driver's license, register to vote, register his car, get it insured there, etc.

I suppose we could have kept everything under the radar and kept his car registered and insured in NH, but we've always tried to do things above board. And, if there were ever an accident, the ins co could refuse to pay since the car was not "garaged" in NH.

[thinkxingu]

I applaud your integrity. The world could use more of that, for sure.

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[TiltonBB]

Some states have a time limit after which the sales tax will not apply on transferred in vehicles.

After a certain amount of time you can move your NH registered vehicle to another state, like Florida, and there is no sales tax due. I believe the current Florida law states that no sales tax is due if you register the car in Florida after 6 months in another state.

I am not sure what Vermont's law is but it may have been worth asking the question.

[thinkxingu]

Originally Posted by MeredithMan

So some of you may recall a prior post I put up back in the Springtime about my son moving to Vermont and looking for a place to live. Ultimately, that was sorted out and he moved in to a great place in Rutland and has been enjoying his job at GE and getting to know his new surroundings.

Back in March, not yet having secured the GE job in VT, but knowing he would need a car upon graduation, he bought a new Honda Pilot SUV here in NH. He registered it in NH, since he anticipated living with his mom and me. He got the GE VT job, moved over there, and last week finally went to register the car in VT. Much to his surprise, (and to mine and his mother's), he had to fork over $2400 in VT state sales tax on the car in order to register it!! (6% sales tax X $40K value).

He told the DMV person that he didn't try to pull a fast one by buying the car in "no sales tax NH"...he was actually living here and didn't know he would end up in VT and that it was completely unfair to pay VT sales tax when nothing about his car purchase had anything to do with VT. He ended up maxing out his two credit cards in order to pay the sales tax! The DMV person said they give you credit for the sales tax you paid in the previous state where you bought the car, but since NH doesn't have a sales tax, "you have to pay ".

The rules are the rules, but it's really outrageous!

It looks like it would have to have been at least three years, which is crazy.



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[TheTimeTraveler]

Originally Posted by TiltonBB

Some states have a time limit after which the sales tax will not apply on transferred in vehicles.

After a certain amount of time you can move your NH registered vehicle to another state, like Florida, and there is no sales tax due. I believe the current Florida law states that no sales tax is due if you register the car in Florida after 6 months in another state.

I am not sure what Vermont's law is but it may have been worth asking the question.

I also recall hearing something like the 6 month rule.......

[thinkxingu]

Originally Posted by TheTimeTraveler

I also recall hearing something like the 6 month rule.......

See my response, just above.

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[TiltonBB]

Originally Posted by thinkxingu

See my response, just above.

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It looks like the three years may not even apply since it says it must have been registered for three years or more "in a jurisdiction that imposes a state sales tax". That would not include New Hampshire.

There are only 5 states that do not have a state sales tax: Delaware, Alaska, Montana, New Hampshire and Oregon.

The catch all phrase that is in the sales tax law in most states is "sales or use tax". That way even if the sale did not occur in that state they can still tax you.

[Little Bear]

A few years ago I bought a new-to-me boat for my place in Florida. When I tried to register it in Florida, they asked if I had purchased it more than 6 months prior, which I had not. Therefore, they wanted me to pay a 6% sales tax, which amounted to $7200.00. I walked out, contacted the State of NH and registered it here for less than $400.00. I feel zero guilt. I then bought a brand new (2nd boat) in Florida for a different mission. I again registered it in NH, and again feel zero guilt.

[BroadHopper]

Decades ago I moved to Dracut Mass from NH. I also had to pay sales tax on vehicles to get them registered. The tax was based on the Nadaguide value of the car which is non-negotiable in case the vehicle is a piece of junk compared to pristine.
So Mass. and VT. are pretty much in line. Not sure about Maine. I never heard any complaints.
I know if you bought a vehicle from Mass. and live in NH. You must sign the title and register in an NH town hall to escape the sales tax. weird.

[SAMIAM]

Originally Posted by Little Bear

A few years ago I bought a new-to-me boat for my place in Florida. When I tried to register it in Florida, they asked if I had purchased it more than 6 months prior, which I had not. Therefore, they wanted me to pay a 6% sales tax, which amounted to $7200.00. I walked out, contacted the State of NH and registered it here for less than $400.00. I feel zero guilt. I then bought a brand new (2nd boat) in Florida for a different mission. I again registered it in NH, and again feel zero guilt.

Same here Little Bear
Bought a boat in Kentucky and avoided the tax by having it shipped to Florida but registered in NH. Absolutely 0 quilt. We pay our share of taxes in many other ways

[Garcia]

It is highly doubtful anyone will be called on boat registration. If you live in another state, you can legally register your boat in NH if it is used 51% of the time in NH. In FL, a boat from another state can be used no more than 90 days, and in MA for no more than 60 days.

Paying sales tax on used vehicles in MA irks me. Multiple people are paying sales tax on the same vehicle; every time it is registered to a new owner, sales tax is paid.

[thinkxingu]

Originally Posted by TiltonBB

It looks like the three years may not even apply since it says it must have been registered for three years or more "in a jurisdiction that imposes a state sales tax". That would not include New Hampshire.

There are only 5 states that do not have a state sales tax: Delaware, Alaska, Montana, New Hampshire and Oregon.

The catch all phrase that is in the sales tax law in most states is "sales or use tax". That way even if the sale did not occur in that state they can still tax you.

Absolutely right—that's horse pucky.

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[TiltonBB]

Originally Posted by Garcia

It is highly doubtful anyone will be called on boat registration. If you live in another state, you can legally register your boat in NH if it is used 51% of the time in NH. In FL, a boat from another state can be used no more than 90 days, and in MA for no more than 60 days.

Paying sales tax on used vehicles in MA irks me. Multiple people are paying sales tax on the same vehicle; every time it is registered to a new owner, sales tax is paid.

Many years ago I kept a boat at Beverly Harbor Marina in Massachusetts. The agents from The Mass Department of Revenue would walk the docks and make note of out of state registered boats. If your boat was there after 60 days elapsed they would notify you that the sales (or use) tax was due.

The big brother situation will get way better just as soon as the 87,000 new IRS agents are hired!

[FlyingScot]

Originally Posted by TiltonBB

Many years ago I kept a boat at Beverly Harbor Marina in Massachusetts. The agents from The Mass Department of Revenue would walk the docks and make note of out of state registered boats. If your boat was there after 60 days elapsed they would notify you that the sales (or use) tax was due.

The big brother situation will get way better just as soon as the 87,000 new IRS agents are hired!

I'm surprised Florida does not have this. Separate from whether these taxes should exist--if the rules aren't enforced, it's not fair to the people trying to do the right thing (as the OP was).

After a couple of generations, you end up with only "stupid" people paying taxes. This made news several years ago during the Greek financial crisis

[Little Bear]

Originally Posted by FlyingScot

I'm surprised Florida does not have this. Separate from whether these taxes should exist--if the rules aren't enforced, it's not fair to the people trying to do the right thing (as the OP was).

After a couple of generations, you end up with only "stupid" people paying taxes. This made news several years ago during the Greek financial crisis

I learned from the former Senator from Taxachusetts...

https://www.nbcnews.com/id/wbna38378992

[The Real BigGuy]

Originally Posted by Outdoorsman

Over time it will work out to be about the same $ as it would cost him to continue registering in NH. His annual registration in VT will be something like $70 VS $300+ that he could be paying in NH.

Also notable, when he files his VT State Tax Return, there is a line on the form for him to claim/pay the 6% VT sales tax on items he bought in NH. Examples would be furniture, household appliances or a lawn mower....

I bet a lot of people check the box and pay the 6%

MA has the same line on its tax forms. I rush to calculate how much I owe the state, NOT!!!


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[MeredithMan]

Originally Posted by thinkxingu

I applaud your integrity. The world could use more of that, for sure.

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I had a great teacher in my father. He always taught us to do the right thing, even when no one is looking. One time when I was a kid...about 12 or 13...he took me to a Bruins game. The people in front of us left before the end of the game, and as we were leaving, my father noticed a wallet either on the seat or under the seat in front of us. He found the guy's license in the wallet and he lived somewhere in Dorchester. My father grew up in Southie and knew approximately where the guy lived, so we drove to the guy's house to return the wallet. We lived out in the western suburbs, so it wasn't exactly on our ride home. I thought the guy was gonna kiss my father...he insisted my father take some cash for being so kind and honest, which my father refused to do.

He would have been 103 yesterday. He made it to almost 90, and I still think about him pretty much every day.

[Garcia]

Originally Posted by MeredithMan

I had a great teacher in my father. He always taught us to do the right thing, even when no one is looking. One time when I was a kid...about 12 or 13...he took me to a Bruins game. The people in front of us left before the end of the game, and as we were leaving, my father noticed a wallet either on the seat or under the seat in front of us. He found the guy's license in the wallet and he lived somewhere in Dorchester. My father grew up in Southie and knew approximately where the guy lived, so we drove to the guy's house to return the wallet. We lived out in the western suburbs, so it wasn't exactly on our ride home. I thought the guy was gonna kiss my father...he insisted my father take some cash for being so kind and honest, which my father refused to do.

He would have been 103 yesterday. He made it to almost 90, and I still think about him pretty much every day.

I wasn't going to respond to some of the earlier posts but you struck a nerve. I, too was raised to do the right thing and try and make sure I send the same message to my own children. What your son did in transferring the vehicle to VT was the right thing to do.