95ireland

I am in the process of trying to purchase an Audi from an individual in Washington DC. He leased the car from Audi Finance and we are being told by Audi Finance that regardless of whether he does the early buyout of the lease from Audi or whether I pay it off directly to Audi, that we will be liable for state taxes in both DC and North Carolina (where I reside). Paying the Sales tax in DC is another $2500 - $3000. Logically I would have thought if I buyout the lease from Audi and the car is never titled to the individual in DC, then he/we shouldn't have to pay DC sales tax also.
I know in CA that if you buyout your lease and sell the car within 10 days the seller is not liable for state taxes, just the person to whom the car is sold. I've searched and searched and have not been able to find specific direction regarding the rules in DC. I fully expect to pay NC taxes on the purchase but it seems unreasonable to pay DC sales tax also. Insight from anyone that has had a similar experience or can provide definitive guidance on the state sales tax regulations governing this situation, would be very helpful.

snagitseven

Generally, if you buy from a dealer, you pay sales tax in the locale where you register the car. Check with your department of revenue. Many locales will allow for a tax credit in situations like this.

Davor_

When i got my car form different state i paid taxes for MY state and not where the cars was located!

Aviator6

Most states work that way, but I bought a car in Indiana once, and the only way to avoid Indiana sales tax was to have the car trucked out of state. I ended up paying sales tax in Indiana(dealer adjusted deal for 1/2 of the IN tax), and when I titled it in WV. Some states will give you credit, if you can prove that paid sales tax in another state.