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Learning, Sharing, and Teaching => Ask a Mustachian => Topic started by: Montana Socrates on April 03, 2016, 05:44:18 PM

Title: Used Car Sales Tax in Colorado?
Post by: Montana Socrates on April 03, 2016, 05:44:18 PM
Hello everyone. We live in Montana and are visiting my sister-in-law in Denver and are thinking about purchasing a used car. Can anyone tell me whether a sales tax would apply for such a purchase? Montana does not have sales tax (sorry!) so we aren't used to factoring this in when we buy things.

Any other tips on how to make such a transaction go smoothly?

Thanks in advance.
Title: Re: Used Car Sales Tax in Colorado?
Post by: Montana Socrates on April 03, 2016, 07:21:01 PM
It looks like the answer is no sales tax:
https://www.colorado.gov/pacific/sites/default/files/DR0780.pdf
Title: Re: Used Car Sales Tax in Colorado?
Post by: JLee on April 03, 2016, 07:31:56 PM
I see you already found your answer - but to clarify further, if you are buying a car out of state you will pay sales tax in the state where you'll register it (and not in the state where it is sold).  There may be an exception somewhere, but I haven't ran across it yet.

Some states are weird, too. Arizona does not charge sales tax on private party vehicle sales, but it does for dealer sales.
Title: Re: Used Car Sales Tax in Colorado?
Post by: COlady on April 04, 2016, 10:21:42 AM
Are you buying from a dealer or a private party? I think that will be the deciding factor. I think the dealerships are required to charge sales tax...but I would just call them up and ask them. But as someone else said, you pay sales tax in the county you register in, so for you that would be whatever county you live in in Montana.
Title: Re: Used Car Sales Tax in Colorado?
Post by: COlady on April 04, 2016, 10:22:31 AM
Maybe the dealer completes form  DR0780 and you're good to go...they should be able to answer this question for you.
Title: Re: Used Car Sales Tax in Colorado?
Post by: JLee on April 04, 2016, 12:55:29 PM
Are you buying from a dealer or a private party? I think that will be the deciding factor. I think the dealerships are required to charge sales tax...but I would just call them up and ask them. But as someone else said, you pay sales tax in the county you register in, so for you that would be whatever county you live in in Montana.

If the dealer is selling a car to be titled out of state, they have no reason to charge sales tax (unless they have an agreement to collect tax on behalf of the destination state). It is not due in the state of sale.
Title: Re: Used Car Sales Tax in Colorado?
Post by: Montana Socrates on April 04, 2016, 08:05:39 PM
Thanks, everyone. We ended up buying a used Honda Fit from a private party. Took the title and bill of sale to the DMV, paid $6 for a 30-day temporary registration (till we can get it properly registered in Montana), and are good to go. Luckily for us, no sales tax in Montana. :-)
Title: Re: Used Car Sales Tax in Colorado?
Post by: ShoulderThingThatGoesUp on April 05, 2016, 02:28:45 PM
Thanks, everyone. We ended up buying a used Honda Fit from a private party. Took the title and bill of sale to the DMV, paid $6 for a 30-day temporary registration (till we can get it properly registered in Montana), and are good to go. Luckily for us, no sales tax in Montana. :-)

Check if it's on the recall list like mine and several other forum members' cars are. Honda should give you a free rental while they're waiting for parts...so at least you won't be putting miles on your new-to-you car.