Car Registration in 2 states? - VA & DE

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Flynlow
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Car Registration in 2 states? - VA & DE

Post by Flynlow » Mon Oct 31, 2016 6:43 pm

Hi all,

First post, though I've read the forum for a long time. Very, very helpful folks around here :happy .

I am fortunate enough to own a home in both Virginia and Delaware. I am still a Virginia resident, and currently have my car(s) registered there, drivers license, voters registration, etc. However, I am spending a fair bit of time in Delaware, and considering leaving a car up here full time. If I do so, is it possible or necessary to register it in-state? Are there any issues with having a vehicle titled and registered in Delaware while maintaining a Virginia driver's license?

Hopefully someone has gone through this before and has some insights to offer. The DMV page for both states was mostly geared to new residents, I had difficulty finding a section that encompasses my admittedly uncommon situation. Thanks!

Jack FFR1846
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Re: Car Registration in 2 states? - VA & DE

Post by Jack FFR1846 » Mon Oct 31, 2016 8:24 pm

I have to believe that costs in DE must be much lower than surrounding states. Their DMV has a section for non-resident registration where you need to provide proof that the car will be garaged in DE.....and it cannot leave the state. Sounds the opposite of most states that require you get license and registration in the state within 30 days of arrival.
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drawpoker
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Re: Car Registration in 2 states? - VA & DE

Post by drawpoker » Tue Nov 01, 2016 8:58 am

Jack FFR1846 wrote:I have to believe that costs in DE must be much lower than surrounding states. Their DMV has a section for non-resident registration where you need to provide proof that the car will be garaged in DE.....and it cannot leave the state. Sounds the opposite of most states that require you get license and registration in the state within 30 days of arrival.
That's a joke. Like a lot of things going on in the First State, enforcement of many things is either very lax. Or non-existent. The attraction to registering a car, either new or used, in DE is No Sales Tax. (DE has no sales tax on anything :D
Around here, many, many non-professional people use a relative or friend's address in DE, or a PO Box just across the line, in order to evade having to pay the MD tax that is calculated and due upon registering a car in MD. If brought in from another state that has a less than 6% sales tax on automobiles.
Why the authorities don't crack down on this I can't figure. It is being done so blatantly, they have to be aware of it.
When the police see the same car with a DE tag parked in front of the same house every night for six months, it doesn't take a genius.
Since you have an address that is legitimately your DE residence I think you will be fine with it. To be on the safe side, discuss it with your insurance agent and find out if the insurance card for the car that will stay in DE has your name and DE address on it, not your VA address.
If you run into problems, it will likely be a DE trooper who stops you, and questions why you have a VA driver's license. Suspecting you secretly live in DE full-time and failed to acquire DE driver license :oops:

Edit: Also, am assuming you are contemplating this because you take Amtrak, or other form of transit, from NOVA to Wilmington area, and thus would like to have a vehicle handy. Not because you are trying to skip paying the NOVA (unjustly high) property tax imposed on personal vehicles, right?

Flynlow
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Re: Car Registration in 2 states? - VA & DE

Post by Flynlow » Tue Nov 01, 2016 6:21 pm

My newest vehicle is 14 years old, and my oldest is 51, a happy coincidence is that the vehicle property tax is negligible. :D

I am mostly concerned about having a vehicle sitting in the driveway 9 months out of the year, and a happy government employee trying to make sure everything is in compliance.

btenny
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Re: Car Registration in 2 states? - VA & DE

Post by btenny » Tue Nov 01, 2016 6:31 pm

I own a car that is registered in California and "garaged there" at my house there. I also own a car that is registered in Arizona and garaged at my home in Arizona. My insurance guy wants the cars to be "garaged" where they are titled and registered. I drive them back and forth and around the country as needed. He says that is fine. I am a resident of Arizona. California does not care if I am a resident to register a car in their state. So I think you can register a car in both places.

Good Luck.

Hockey10
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Re: Car Registration in 2 states? - VA & DE

Post by Hockey10 » Wed Nov 02, 2016 11:54 am

Delaware has no sales tax, but it does have a 4.25% "document fee" to register a car. So on a $20,000 car for example, you will pay $850 for this fee plus $40 per year X the number of years registered.

SQRT
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Re: Car Registration in 2 states? - VA & DE

Post by SQRT » Wed Nov 02, 2016 2:11 pm

I have cars registered in Alberta, Ontario, and Arizona. Bottom line is that you should register them where they are. That's the law.

ww340
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Re: Car Registration in 2 states? - VA & DE

Post by ww340 » Wed Nov 02, 2016 2:22 pm

We have two homes and register and insure the car in the state the car is kept. Insurance can be important, as each state has differing requirements.

gmc4h232
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Re: Car Registration in 2 states? - VA & DE

Post by gmc4h232 » Wed Nov 02, 2016 5:33 pm

drawpoker wrote:
Jack FFR1846 wrote: The attraction to registering a car, either new or used, in DE is No Sales Tax. (DE has no sales tax on anything :D
Correct me if im wrong (never registered a car before), but how is the zero sales tax argument relevant to re-titling an existing car? This would be essentially the same as moving to a different state and re-titling your car there. I would think you would want to compare personal property tax rates rather than sales tax rates.

Other questions to ask - does DE require state safety inspections like VA? and emissions testing like in NOVA? These are both burdens with limited efficacy.

drawpoker
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Re: Car Registration in 2 states? - VA & DE

Post by drawpoker » Wed Nov 02, 2016 9:20 pm

gmc4h232 wrote:
drawpoker wrote:
Jack FFR1846 wrote: The attraction to registering a car, either new or used, in DE is No Sales Tax. (DE has no sales tax on anything :D
Correct me if im wrong (never registered a car before), but how is the zero sales tax argument relevant to re-titling an existing car? This would be essentially the same as moving to a different state and re-titling your car there. I would think you would want to compare personal property tax rates rather than sales tax rates.

If you buy a car, either new or used, in Delaware, there is no sales tax. But, if you are a Maryland resident, you are legally required to register (re-title) the car in Maryland within 30 days. Low class people evade doing this as the Maryland MVA will tally up an extra 6% (our state sales tax rate) in addition to the usual fees of registration. Coming from a state like DE with zero sales tax, this represents a lot of $$$. If you come from a state where you paid, say 3% auto sales tax, Maryland will insist on pocketing the other 3%. If you paid 5%, they will still grab another 1%
As for personal property tax on automobiles, no, neither Maryland or Delaware does that. Virginia is rather peculiar that way, to my thinking. Offhand, can't think of any other states that do that. :?



Other questions to ask - does DE require state safety inspections like VA?

Nope.

and emissions testing like in NOVA?

Nope again. That is why the First State is also known as LSD - "Lower, Slower Delaware" Just generally lax and behind the times in so many things :(

These are both burdens with limited efficacy.

gmc4h232
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Re: Car Registration in 2 states? - VA & DE

Post by gmc4h232 » Thu Nov 03, 2016 6:03 am

drawpoker wrote:
gmc4h232 wrote:
drawpoker wrote:
Jack FFR1846 wrote: The attraction to registering a car, either new or used, in DE is No Sales Tax. (DE has no sales tax on anything :D
Correct me if im wrong (never registered a car before), but how is the zero sales tax argument relevant to re-titling an existing car? This would be essentially the same as moving to a different state and re-titling your car there. I would think you would want to compare personal property tax rates rather than sales tax rates.

If you buy a car, either new or used, in Delaware, there is no sales tax. But, if you are a Maryland resident, you are legally required to register (re-title) the car in Maryland within 30 days. Low class people evade doing this as the Maryland MVA will tally up an extra 6% (our state sales tax rate) in addition to the usual fees of registration. Coming from a state like DE with zero sales tax, this represents a lot of $$$. If you come from a state where you paid, say 3% auto sales tax, Maryland will insist on pocketing the other 3%. If you paid 5%, they will still grab another 1%
As for personal property tax on automobiles, no, neither Maryland or Delaware does that. Virginia is rather peculiar that way, to my thinking. Offhand, can't think of any other states that do that. :?



Other questions to ask - does DE require state safety inspections like VA?

Nope.

and emissions testing like in NOVA?

Nope again. That is why the First State is also known as LSD - "Lower, Slower Delaware" Just generally lax and behind the times in so many things :(

These are both burdens with limited efficacy.
Again - OP is talking about re-titling an existing car, not purchasing a new one, so sales tax issue is moot. If it were me i would title all my cars in DE to avoid VAs personal property tax and safety/emissions inspection requirements if you say DE doesn't require these things. And possibly also look at making the DE residence my primary residence if that makes sense.

drawpoker
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Re: Car Registration in 2 states? - VA & DE

Post by drawpoker » Thu Nov 03, 2016 6:49 pm

gmc4h232 wrote:

- OP is talking about re-titling an existing car, not purchasing a new one, so sales tax issue is moot. If it were me i would title all my cars in DE to avoid VAs personal property tax and safety/emissions inspection requirements if you say DE doesn't require these things. And possibly also look at making the DE residence my primary residence if that makes sense.
Maybe I didn't make my posts clear.
The sales tax issue is most definitely NOT moot when you are re-titling an existing car because you are moving to a diff. state. Am quite sure Maryland is not unique in this. As far as having its greedy hand out at the MVA for new people coming in to register their cars from DE. As already stated, anyone coming in here who paid less than 6% sales tax when they bought the car (or none at all like state of DE ) will have to pony up the difference to equal the going rate for Maryland.

Since people who actually live (legal residents) very close to the MD, PA, NJ, or VA borders like to abuse the law of correctly registering the cars they bought in DE, the OP is correct to question whether having a DE tag on a car may cause future problems with the authorities since he isn't a legal resident of the state.

Virginia? I dunno how they handle the issue. Maybe someone here who moved to the Old Dominion from one of the states with no sales tax can tell us.

Yes, yes, yes ! Like your idea about buying all my cars in Delaware. But primary residence? Huh?
Can I pitch a pup tent in a state park, pay the $2, and declare that to be my legal residence? Sure ! Why not!

Think you are confusing the concepts of primary residence (a domiciliary) with legal residence.

Davistax
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Re: Car Registration in 2 states? - VA & DE

Post by Davistax » Thu Nov 03, 2016 10:42 pm

As someone who lived in DE for 60 years, I can assure you that DE does have safety & emissions inspections. You can purchase tags good for 5 years for a new car. After that, you will need to have the car inspected at least every 2 years.

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Re: Car Registration in 2 states? - VA & DE

Post by jlawrence01 » Fri Nov 04, 2016 12:41 am

drawpoker wrote:Virginia? I dunno how they handle the issue. Maybe someone here who moved to the Old Dominion from one of the states with no sales tax can tell us.

I reported to my job in Richmond, VA on July 1st with Ohio plates. By July 15th, I had a warning notice telling me that I had 30 days to have by vehicle registered in VA. I would consider that very aggressive.

gmc4h232
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Re: Car Registration in 2 states? - VA & DE

Post by gmc4h232 » Fri Nov 04, 2016 7:42 am

drawpoker wrote:
gmc4h232 wrote:

- OP is talking about re-titling an existing car, not purchasing a new one, so sales tax issue is moot. If it were me i would title all my cars in DE to avoid VAs personal property tax and safety/emissions inspection requirements if you say DE doesn't require these things. And possibly also look at making the DE residence my primary residence if that makes sense.
Maybe I didn't make my posts clear.
The sales tax issue is most definitely NOT moot when you are re-titling an existing car because you are moving to a diff. state. Am quite sure Maryland is not unique in this. As far as having its greedy hand out at the MVA for new people coming in to register their cars from DE. As already stated, anyone coming in here who paid less than 6% sales tax when they bought the car (or none at all like state of DE ) will have to pony up the difference to equal the going rate for Maryland.

Since people who actually live (legal residents) very close to the MD, PA, NJ, or VA borders like to abuse the law of correctly registering the cars they bought in DE, the OP is correct to question whether having a DE tag on a car may cause future problems with the authorities since he isn't a legal resident of the state.

Virginia? I dunno how they handle the issue. Maybe someone here who moved to the Old Dominion from one of the states with no sales tax can tell us.

Yes, yes, yes ! Like your idea about buying all my cars in Delaware. But primary residence? Huh?
Can I pitch a pup tent in a state park, pay the $2, and declare that to be my legal residence? Sure ! Why not!

Think you are confusing the concepts of primary residence (a domiciliary) with legal residence.
So then by this logic, someone moving from a state with sales tax (MD @ 6%) to a state with no sales tax (DE @ 0%) would be owed a credit? Just asking the question, because it seems crooked to me, and I dont have any experience re-titling a vehicle in a different state.

criticalmass
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Re: Car Registration in 2 states? - VA & DE

Post by criticalmass » Fri Nov 04, 2016 7:46 am

Virginia counties and cities have an annual ad valorem tax on vehicles. The penalty for evading this tax while keeping a car there over 45 days/year is steep. County/city registration is independent of state dmv plates, so you can register your DE registered car with your Virginia county, pay your tax and be fine.

criticalmass
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Re: Car Registration in 2 states? - VA & DE

Post by criticalmass » Fri Nov 04, 2016 7:52 am

gmc4h232 wrote:
drawpoker wrote:
gmc4h232 wrote:

- OP is talking about re-titling an existing car, not purchasing a new one, so sales tax issue is moot. If it were me i would title all my cars in DE to avoid VAs personal property tax and safety/emissions inspection requirements if you say DE doesn't require these things. And possibly also look at making the DE residence my primary residence if that makes sense.
Maybe I didn't make my posts clear.
The sales tax issue is most definitely NOT moot when you are re-titling an existing car because you are moving to a diff. state. Am quite sure Maryland is not unique in this. As far as having its greedy hand out at the MVA for new people coming in to register their cars from DE. As already stated, anyone coming in here who paid less than 6% sales tax when they bought the car (or none at all like state of DE ) will have to pony up the difference to equal the going rate for Maryland.

Since people who actually live (legal residents) very close to the MD, PA, NJ, or VA borders like to abuse the law of correctly registering the cars they bought in DE, the OP is correct to question whether having a DE tag on a car may cause future problems with the authorities since he isn't a legal resident of the state.

Virginia? I dunno how they handle the issue. Maybe someone here who moved to the Old Dominion from one of the states with no sales tax can tell us.

Yes, yes, yes ! Like your idea about buying all my cars in Delaware. But primary residence? Huh?
Can I pitch a pup tent in a state park, pay the $2, and declare that to be my legal residence? Sure ! Why not!

Think you are confusing the concepts of primary residence (a domiciliary) with legal residence.
So then by this logic, someone moving from a state with sales tax (MD @ 6%) to a state with no sales tax (DE @ 0%) would be owed a credit? Just asking the question, because it seems crooked to me, and I dont have any experience re-titling a vehicle in a different state.
Most States don't charge sales (use) tax if you've owned the car at least 6 months prior to moving it to that state. If the state charges an annual ad valorem tax, you'd still pay that.

If you buy a car in Maryland but register it immediately in 0% Delaware, you owe no Maryland sales tax. Just don't register it in Maryland on the way out.

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Re: Car Registration in 2 states? - VA & DE

Post by westie » Fri Nov 04, 2016 10:14 am

DELAWARE
A vehicle which has been registered in the state, country, or other place of which the owner is a resident, and which at all times has displayed license plates issued for any such vehicle in the place of residence of the owner, may be operated without registering the vehicle or paying any fees to the state.

The DOT shall allow registration of motor vehicles owned by individuals who are not residents of Delaware upon presentation of an affidavit by the applicant, on a form approved by the DOT, swearing or affirming that the vehicle is principally garaged in Delaware and that the applicant is the owner of at least 1 other vehicle which is registered and insured in the state of the applicant’s residence.

http://drivinglaws.aaa.com/tag/registra ... residents/

drawpoker
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Re: Car Registration in 2 states? - VA & DE

Post by drawpoker » Fri Nov 04, 2016 11:21 am

Davistax wrote:.... I can assure you that DE does have safety & emissions inspections. You can purchase tags good for 5 years for a new car. After that, you will need to have the car inspected at least every 2 years.
Sorry for the confusion - took the poster to mean he was asking about annual safety inspections, the kind most drivers are familiar with.
Maryland is even more lax about this than the First State :shock: Here, cars only get a safety inspection when they are re-sold, so people can drive an unsafe car (and endanger others with things like bad brakes or bald tires) for years and years.
btw, all of the cars I see around here displaying the DE plate are not displaying any kind of safety or emissions sticker in the windshield.
Why don't the DE troopers stop these drivers when they are over in Dover or Middletown?

btenny
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Re: Car Registration in 2 states? - VA & DE

Post by btenny » Fri Nov 04, 2016 11:37 am

Also watch out for insurance costs. I encountered big cost differences for insurance when registering cars in two states. I pay dramatically less to insure a car in my California small town than I do at my Phoenix metro home. Apparently the small town has few wrecks or stolen cars and other issues that drive up insurance rates in my Phoenix home. So I pay high insurance in my LCOL area of Phoenix.

So do some detail analysis of your insurance costs in both states before you make any car registration decisions.

Good Luck.

btenny
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Re: Car Registration in 2 states? - VA & DE

Post by btenny » Fri Nov 04, 2016 11:57 am

Yes that safety and smog inspection thing can also be a problem. My California small town requires a one time smog and safety inspection. No big deal. I got that done on my California cars when I first registered them there. Then annually I just mail in the new annual registration paper and money as required. But Phoenix requires a bi-annual smog test of the Arizona car. So when the license needs to be renewed you have to take the car to a inspection station and get it tested. But I am out of town in California when the tags are due. Thus I drive the car with expired plates for 2 months until I get back to Phoenix. Then I have to get the car tested and pay a late fee. So far driving on expired plates has not caused a problem. But who knows next time...

I also had issues with getting the mail forwarded from all senders for a few years when I first started the two house thing. So your car registration paperwork may not get delivered. It takes time to get that sorted out. So beware there are those issues as well. For those that have not done this some senders will not allow mail to be forwarded by the post office. In some cases the mail is returned to sender and the sender is notified of the forwarded address. So some bills are just not delivered sometimes.

Good Luck.

drawpoker
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Re: Car Registration in 2 states? - VA & DE

Post by drawpoker » Fri Nov 04, 2016 2:29 pm

gmc4h232 wrote:

.. then by this logic, someone moving from a state with sales tax (MD @ 6%) to a state with no sales tax (DE @ 0%) would be owed a credit?... Just asking...seems crooked to me........
I can't disagree with that! Crooked, greedy, overbearing, no respect for other states' sovereignty - yep, that's about right.
And, the MVA here isn't going to be caught asleep on any of it; they must keep archival records on the other 49 that would rival the Lieberry of Congress.

When I moved here with my car from North Carolina, they caught the fact that back then NC had a 3% sales tax on new motor vehicles, but it was capped at $15,000.
Did Maryland respect this? Of course not, since the car cost way more than $15,000, they sharpened their pencils and calculated the 3% I had to ante up to Maryland at the full cost of the car, not the $15,000 cap.
:twisted:

Davistax
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Re: Car Registration in 2 states? - VA & DE

Post by Davistax » Fri Nov 04, 2016 4:41 pm

....btw, all of the cars I see around here displaying the DE plate are not displaying any kind of safety or emissions sticker in the windshield.
Why don't the DE troopers stop these drivers when they are over in Dover or Middletown?

DE doesn't have windshield emission stickers. There is a sticker on the license plate indicating how long the registration is valid & when the next inspections are due. Troopers will stop you if they see these have expired.

Flynlow
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Re: Car Registration in 2 states? - VA & DE

Post by Flynlow » Fri Nov 04, 2016 9:28 pm

OP checking in :happy .

Drawpoker, I appreciate your enthusiasm, and am sorry for your experience with the Maryland DMV, but you may want to start your own thread for that. I have no intentions of moving to Maryland or having anything to do with them...so I'm not terribly worried about whether they do or don't charge sales tax.


For clarification: I am not worried about a few hundred dollars in registration fees or possible insurance premium increases. I know we have a great group of optimizers that can find the most efficient scenario for a given situation, and I'm sorry if my lack of concern for savings here is giving you fits :D . But my sole concern in this case is doing the correct, legal thing.
westie wrote:DELAWARE
A vehicle which has been registered in the state, country, or other place of which the owner is a resident, and which at all times has displayed license plates issued for any such vehicle in the place of residence of the owner, may be operated without registering the vehicle or paying any fees to the state.

The DOT shall allow registration of motor vehicles owned by individuals who are not residents of Delaware upon presentation of an affidavit by the applicant, on a form approved by the DOT, swearing or affirming that the vehicle is principally garaged in Delaware and that the applicant is the owner of at least 1 other vehicle which is registered and insured in the state of the applicant’s residence.

http://drivinglaws.aaa.com/tag/registra ... residents/
Great info, thanks very much! Should be very easy to document in this case if I bring my other VA cars' registration when I go to the DMV/inspection station in DE. To the poster that asked...DE does have inspections, but they are done at the DMV from my reading, rather than at a dealer or mechanic as in VA and elsewhere. Hopefully that cuts down on the potential conflicts of interest?

jlawrence01 wrote:
drawpoker wrote:Virginia? I dunno how they handle the issue. Maybe someone here who moved to the Old Dominion from one of the states with no sales tax can tell us.

I reported to my job in Richmond, VA on July 1st with Ohio plates. By July 15th, I had a warning notice telling me that I had 30 days to have by vehicle registered in VA. I would consider that very aggressive.
Ha! That's where I'm from, too! I actually moved to Richmond from Ohio back in 2011. Where do you work, if you don't mind my asking? How do you like Richmond? I moved from Marysville, Ohio, and found Richmond to have the amenities of a bigger city with few of the parking/crowded/rushed drawbacks of big cities in the northeast. Are you a craft brew person at all? Maybe we can organize a Boglehead meet at one of the breweries in town this fall?

They are definitely strict in checking registration/plates in Virgina...I've been caught in that enforcement enthusiasm before, which is part of what prompted this thread. Thankfully, Richmond does not have the local sticker requirements of some Nova counties, nor their emissions testing (safety check only).


Thanks again for the help, all!

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Re: Car Registration in 2 states? - VA & DE

Post by grabiner » Fri Nov 04, 2016 9:45 pm

drawpoker wrote:When I moved here with my car from North Carolina, they caught the fact that back then NC had a 3% sales tax on new motor vehicles, but it was capped at $15,000.
Did Maryland respect this? Of course not, since the car cost way more than $15,000, they sharpened their pencils and calculated the 3% I had to ante up to Maryland at the full cost of the car, not the $15,000 cap.
:twisted:
As you describe it, this is a net gain. If your car is worth $25,000, the MD tax due on the car is $1500. You should get a credit only for the $450 you paid to NC, and owe $1050. You seem to say that you got a credit for the $750 that NC would have taxed you on the full value, and owed only $750.
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Re: Car Registration in 2 states? - VA & DE

Post by drawpoker » Sat Nov 05, 2016 8:10 pm

grabiner wrote:
drawpoker wrote:When I moved here with my car from North Carolina, they caught the fact that back then NC had a 3% sales tax on new motor vehicles, but it was capped at $15,000.
Did Maryland respect this? Of course not, since the car cost way more than $15,000, they sharpened their pencils and calculated the 3% I had to ante up to Maryland at the full cost of the car, not the $15,000 cap.
:twisted:
As you describe it, this is a net gain. If your car is worth $25,000, the MD tax due on the car is $1500. You should get a credit only for the $450 you paid to NC, and owe $1050. You seem to say that you got a credit for the $750 that NC would have taxed you on the full value, and owed only $750.
Huh? What? Yikes!

Maybe I didn't make it clear. :? Let's start over.

What I SHOULD have paid to Maryland - If the Old Line state had any decency about her - was $450, not $750.

Maryland takes the position that the owner has to make up any difference (percentage-wise) in state sales tax rates. Okay, fine, if that's what it is. ( Albeit somewhat crooked as another poster here has alertly pointed out.
But, my point is - since NC had a cap on their 3% rate, Maryland should have honored that, and thus calculated their haul of the other 3% by applying that state's cap.

Now, does it make sense. :confused :confused :confused

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Re: Car Registration in 2 states? - VA & DE

Post by grabiner » Sat Nov 05, 2016 8:54 pm

drawpoker wrote:
grabiner wrote:
drawpoker wrote:When I moved here with my car from North Carolina, they caught the fact that back then NC had a 3% sales tax on new motor vehicles, but it was capped at $15,000.
Did Maryland respect this? Of course not, since the car cost way more than $15,000, they sharpened their pencils and calculated the 3% I had to ante up to Maryland at the full cost of the car, not the $15,000 cap.
:twisted:
As you describe it, this is a net gain. If your car is worth $25,000, the MD tax due on the car is $1500. You should get a credit only for the $450 you paid to NC, and owe $1050. You seem to say that you got a credit for the $750 that NC would have taxed you on the full value, and owed only $750.
Huh? What? Yikes!

Maybe I didn't make it clear. :? Let's start over.

What I SHOULD have paid to Maryland - If the Old Line state had any decency about her - was $450, not $750.

Maryland takes the position that the owner has to make up any difference (percentage-wise) in state sales tax rates. Okay, fine, if that's what it is. ( Albeit somewhat crooked as another poster here has alertly pointed out.
But, my point is - since NC had a cap on their 3% rate, Maryland should have honored that, and thus calculated their haul of the other 3% by applying that state's cap.

Now, does it make sense. :confused :confused :confused
Maryland taxes the car based on its full value. If you have a $25,000 car, the MD sales tax is $1500. MD then allows you a credit for any sales tax paid to another state. If you actually paid $450 to another state, you should owe $1050 to MD; if MD charged you $750, that is more generous than it should be.
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jlawrence01
Posts: 1426
Joined: Mon Feb 25, 2013 1:34 am
Location: Southern AZ

Re: Car Registration in 2 states? - VA & DE

Post by jlawrence01 » Sat Nov 05, 2016 11:48 pm

Flynlow wrote:Ha! That's where I'm from, too! I actually moved to Richmond from Ohio back in 2011. Where do you work, if you don't mind my asking? How do you like Richmond? I moved from Marysville, Ohio, and found Richmond to have the amenities of a bigger city with few of the parking/crowded/rushed drawbacks of big cities in the northeast. Are you a craft brew person at all? Maybe we can organize a Boglehead meet at one of the breweries in town this fall?

They are definitely strict in checking registration/plates in Virgina...I've been caught in that enforcement enthusiasm before, which is part of what prompted this thread. Thankfully, Richmond does not have the local sticker requirements of some Nova counties, nor their emissions testing (safety check only).

I had nothing against Richmond itself. However, after six months at MCV/VCU, I was more than happy to accept a position in the projects of Detroit. No kidding.

In my three years in Virginia, I lived in Henrico County, Petersburg, Hopewell, and Lancaster County. I think that they all required a sticker ... but that was a few years back.

BrianMc
Posts: 133
Joined: Sat Feb 07, 2009 9:03 am

Re: Car Registration in 2 states? - VA & DE

Post by BrianMc » Sun Nov 06, 2016 11:45 pm

Some friendly advice...

I'd become very familiar with the Virginia vehicle registration requirements. Here's why: A friend of mine was working in DC and living in a northern Virginia suburb. He was actually a citizen of a mid-western state and working for the Fed Govt on a program which, per the Federal tax code, allows the employee to maintain his/her home state of residence since the tour in DC was only for 18 months. My friend and his wife each had a vehicle with non-Virginia plates. Well, friend's wife worked in Virginia and thus, had to pay Virginia state taxes and hence, filed a Virginia return. They were unaware they had to register their vehicles in Virginia.

Fast forward a year and they received a nasty surprise out of left field...they got hit with back registration fees and a hefty fine in excess of $1,000 for not having registered their vehicles in-state. :oops: Only thing they could think of was that some state entity drives through neighborhoods with license plate readers an then later bounces the owners of the vehicles off those who filed Virginia tax returns. Those tax filers who didn't register their vehicles are then caught and fined.

In the interest of transparency, that's a theory, no idea if it's true. However, if you think about it, the DC suburbs have soooooo many transplants, it makes sense to use the technology to collect fees for the state. The only other possibility is that someone reported them, which would be odd.

Anyway, take that theory for what it's worth.

drawpoker
Posts: 2055
Joined: Mon May 19, 2014 6:33 pm
Location: Delmarva

Re: Car Registration in 2 states? - VA & DE

Post by drawpoker » Mon Nov 07, 2016 10:01 am

BrianMc wrote:......Fast forward a year and they received a nasty surprise out of left field...they got hit with back registration fees and a hefty fine in excess of $1,000 for not having registered their vehicles in-state. :oops: Only thing they could think of was that some state entity drives through neighborhoods with license plate readers an then later bounces the owners of the vehicles off those who filed Virginia tax returns. Those tax filers who didn't register their vehicles are then caught and fined....that's a theory, no idea if it's true.....
Probably not true. Not a very efficient way (too labor intensive) to catch offenders.

In the computer age, it would be far easier for the state database of people filing state tax returns for the first time (presumably transplants) to match up with the DMV database searching for same name & address of the tax filer for vehicles also recently registered.

Same principle as anyone moving to Virginia and filing for Medicaid, food stamps, or other public assistance being subject to computer matching programs to check for fraud.

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