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I am a Canadian resident currently living in Arizona going to school, I am planning on trading in my current car at one of the dealerships here and buying a used car they have in their lot. My question is, do I still have to pay the sales and use tax if I am going to be registering it with a Canadian license plate. And if I do have to pay taxes, would it be on the entire price of the car, or just whatever I pay in cash for the difference after my trade in. Thanks for any help!
You pay tax on the sales price of the car before any trade in. They don't care how you pay, cash, another car, or a loan. The tax is imposed on the seller in Arizona so the dealer will collect no matter what you tell him. If you registered in another US state they would give you credit for Douglasville taxes paid. I don't know about Canada.
When you buy anything else in Arizona, do you pay sales tax? As the answer to that is yes, the answer's the same for a car. You cannot register a car bought in Arizona with Canadian plates. You would have to arrange for temporary plates, then drive across the border to register it. In this case, you are importing the car. Check out the Registrar of Imported Vehicles (www.riv.ca) for the rules on this.
I do not know what happens in this case. But do not believe the people who say you pay sales tax where you buy the car regardless. Cars are different. Usually, you just pay the state where you are registering the car. I would talk to someone in a place like Vancouver who might have dealt with this.
You may not have to pay taxes in Arizona, but you will have to pay taxes in Canada plus import duties and customs fees. It probably will be much less to license your car in Douglasville and pay taxes. Usually the taxes are paid based on the price after trade.
You might mention your residency status to the dealer he may be able to not charge you but that will be up to him