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» From: Worcester, MA

Dear TaxMama:

I bought my car in July 2002 in Massachusetts and immediately registered it in NY.

The dealership paid 8% tax to NY. Now I am trying to move into Massachusetts and register my car here.

I can not because they are saying that I owe Massachusetts tax.

I am not sure what to do? Can you help me TaxMama?

Evan


Hi Evan,

Is the Mass tax higher than the NY sales tax?

If it is, since you bought the car in Mass in the first place, you may find yourself having to pay the difference. But, I really can't see why.

Why don't you call the state sales tax people and find out what they really want? If they do insist on sales tax, be sure to pay it on the value of the vehicle at the time you move(d) to Mass - two years later, and used.

On the other hand. what they are most likely asking you to pay is not sales tax, but registration.

You DO need to pay registration in the state of residence. In fact, you pay it every year. You know, that fee that gets you the nice, little colored tag to stick on your license plate ....

Hey, I'll bet the first time you pay it, they'll even give you a set of pretty, shiny new plates.

So make some calls and find out ... OK?

Best wishes,

Eva Rosenberg
Your TaxMama


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