I live in Tennessee now, and just closed on a new house in Fairfax Virginia, but will not be moving there until october. TN sales tax is 7% whereas VA is 4%. If I buy a car now, before moving, do I get to register the car to my future VA address and thus pay less sales tax?
In Virginia you pay sales tax on the full sales price of the car. Tennessee is only on the monthly payment. It might actually cost more in taxes
Hmm okay. Well, apparently I will have to pay the full VA tax when I register the car there after moving; so it’s the same either way, it seems.
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So did you answer your own question?
Are you sure?
I recall reading that if you’ve owned the car for <12 months at the time of moving to VA, you’d have to pay the VA sales tax, unless you paid the sales tax in another state. Since TN only charges tax on the monthly payment, VA would look at this as not having paid the appropriate taxes owed, right?
From what a customer who has done a ton a lease transfers told me, VA does not charge sales tax if sale tax from any other state has already been assessed.
You will have paid some non-zero sum in tax to another state by the time you move to VA, right?
You might be ok on the state tax. Property tax at the county level is another animal tho
VA avoids double sales taxation on lease transfers because of this.
There is an arbitrage play here somewhere…