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In Illinois and California, at least, the sales tax rate for cars is based on the purchaser's residence. I think though, that the bulk of the tax revenue goes t
by dhosek 7y ago
In Illinois and California, at least, the sales tax rate for cars is based on the purchaser's residence. I think though, that the bulk of the tax revenue goes to the location of the dealer (but I could be wrong). Purchasing out of state is generally discouraged by having the purchaser pay at least the difference in tax rates if the purchase was less than a specific time since the arrival of the car in state.
- pfranz 7y agoThis article implies it's based on the dealer location in California https://www.caranddriver.com/research/a31548432/california-car-sales-tax-calculator/ https://www.caranddriver.com/research/a31548432/california-c... I seem to remember tax based on the purchase location when I bought a car a few years ago in California.
- dhosek 7y agoIt might have changed, but I remember ads from dealers on just the LA side of the LA-San Bernardino county line advertising that sales tax was based on the purchaser's address. That was still the case in 2014 according to the L.A. Times [1]: >There’s no advantage, in terms of sales tax, on where you go to buy a car. An Orange County resident who buys a car in Santa Monica will stay pay the Orange County sales tax rate. The sales tax rate is charged based on where the car will be registered. I suspect that the Car and Driver article was poorly researched and factually incorrect. [1] https://www.latimes.com/local/california/la-me-aa2-snapshot-sales-tax-20141128-story.html https://www.latimes.com/local/california/la-me-aa2-snapshot-...