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Sales taxes are a responsibility of the state. Merchants collect the tax and pay it to the state. Laws vary from state to state on if or how much a person must pay in sales taxes for bringing a vehicle from one state to another. Some states require the person to pay the difference between sales taxes for the two states, giving the person a credit for sales tax already paid in another state. If the state the person is moving from has no sales tax for vehicles, then the person may be given a limited time to request an exemption. There are also other types of taxes such as "end use taxes" in states like New York and New Jersey which are specific to that particular state and may have to paid. It is best to check with the state's motor vehicle administration when registering the vehicle.

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Q: If you buy a car outside the state you live in do you pay tax on the state you bought it in or the state you live in?
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