Car Purchase

Aug 26, 2016 7 Replies

Let me fitrst say, I am not usre this is the "correct" forum, to pose my car purchase question? Alas I am unaware of another, more apt forum!



We will soon be relocating to Florida (thus no longer owing the many userious CT taxes). We now own two Connecticut registered vehiicles, both of whch we NOW intend to drive.- then register them in FL. The down side, our van has over 160k miles - ergo not quite "trust worthy", to drive the ~1,300 miles to FL.



I Would like to first buy a replacement van n CT, then ~ 3 days later drive to FL. Is there a "way" that I can avoid paying sales tax and annual car registration (and CT car tax) in Both CT and FL?



I want to again apologize, if my request is TOO far off topic - for this forum!! For sure, I have Leraned SO much, as to my personal tax situation, from prior posts/ answers


If you already have a Florida address, I'd see if you could register the car in Florida when you buy it. The Florida DMV web site suggests that there are courier services that do this sort of thing.

Alternatively, get a temporary registration in CT which costs $21 and is good for 10 days. You pay the CT sales tax, but on a new car FL will credit that against the FL sales tax when you reregister it. You shouldn't owe CT property tax since the CT registration would expire before your town has a chance to assess it.

As I recall, New Hampshire doesn't charge sales tax. If you can buy it there and register it in Florida, that might avoid the problem.

Cars are special -- the states collect the sales tax when you register the car, not when you buy it. If Florida is willing to let him register the car before he gets there and he can find a FL insurance agent willing to insure him, that's a good choice.

If, as I suspect, that posses too many logistical challenges, the CT temporary registration costs about the same. The CT tax is 6.35% and FL tax is 6% plus the city or county rate, which makes it 6.5% in Orlando, 7% in Miami, and 7.5% in the Keys. In the worst case if he moves to a place with no local sales tax he'll lose 0.35%, but in most cases the FL tax is higher so the CT tax costs nothing and he's just out the $21 perhaps plus any difference in a week's worth of insurance in FL and CT.

R's, John

For vehicles registered less than six months in the prior state, Florida charges a 6% sales tax. It is pro-rated based on taxes paid the other state. If the other state charges 0% sales tax, you would owe the full 6% in Florida.

If you owned the vehicle for more than six months in the other state (based on the other state's registration), there is no Florida sales tax due when you register it there.

Just in the interests of simplicity, why not wait until you get to FL to buy the replacement vehicle and just drive one down from CT?

If you need extra space for stuff, perhaps renting a UHaul trailer would be a reasonable option instead of driving the van.

We are intent on establishing FL as our TY 2016 state tax domicile. A prior post, to this News group, asked for guidance in establishing FL as our tax state. Further we have consulted with both FL and CT CPA tax preparers. All have said that FL residency goal is achievable.

One of the CT state audit criteria is where our vehicles are registered - CT or FL? Thus we now want both of our cars to have FL license tags.

As an aside! Thanks to the many responders, to a question that is Clearly not a tax question.

It's not _entirely_ a tax question, but whether CT considers you a resident (for tax purposes) or a domiciliary (for tax purposes, although the concept applies for other purposes) is partially a tax question.

-- Arthur L. Rubin, AFSP, CRTP, Brea, CA

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