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Anne
Anne, Master Tax Preparer
Category: Tax
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Experience:  Enrolled Agent with 25 Years Experience specializing Individual and Small Businesses
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I am a military non-resident station in Sierra Vista, AZ. I

Customer Question

I am a military non-resident station in Sierra Vista, AZ. I have been overseas for the past 10 years and am just coming back from an overseas assignment. I purchased a vehicle though a military sales program while overseas and will be taking delivery. How do I avoid paying sales tax? I was told something about an AZ Form 5000 (among other documents) which would exempt me? I have had no luck in contacting the department of revenue in AZ. Any suggestions?
Submitted: 2 years ago.
Category: Tax
Expert:  Anne replied 2 years ago.
Hi

Thank you for using justanswer. Unfortunately, you are responsible for any and all state
and local taxes, registration, and license fees at the time you pick up and/or register the
vehicle if delivery is made in any of the 50 United States.

Please choose AAFES Plain Talk

(which is the first choice from the website:} Get Important Information - encs.com

f the link doesn't work, here's the address you can copy & paste into your web browser

http://www.encs.com/customer-info.aspx

I truly hope this information is helpful but please do not rate until you are satisfied. If you want to click on 1 or 2 just click on the continue to work with me button instead. You will then be able to add any other info or respond to what I have posted so far. Rating 3-5 gives me credit and a good rating but you can still converse with me."


Customer: replied 2 years ago.
Yes I understand the AAFES statement and familiar with their stance. This has nothing to do with the AAFES statement. I did speak to a rep at the Arizona DMV that suggested the Form 5000 and that it would prevent me from paying sales tax. As a nonresident and having been overseas the rep at the DMV suggested the form but its been difficult to get a hold of the dept of revenue.I know there is a way to do it but I am unfamiliar The following is from a previous post. Please review. If you can get another expert on this, it would be appreciated.
Q: If i purchase a vehicle through a local dealer in Phoenix,Az and get the vehicle shipped out of state. Do I avoid paying sales tax on the vehicle?
A:

DearCustomer




Thank you for the opportunity to respond to your question.




There are two ways to gain exemption from sales and use tax on a vehicle purchased in Arizona and delivered out of state, both are only available to Non-residents.




1. A.R.S. § 42-5061(A)(28): Transaction privledge Tax: If a non-resident purchases a vehicle and has it delivered to a state where there is no tax credit given for AZ tax, then you may get an exemption.




Let me explain: Most states require sales and use tax to be paid at time of registration or purchase. If you already paid tax on it, the state will usually give you a credit for having already paid the sales and use tax in another jurisdiction. If your state charges less tax, then no tax would be due. However, if your state has a higher tax rate than AZ, then your state would give you credit for paying AZ tax and collect the difference. In states that offer the credit for AZ taxes, you may not get an exemption from this AZ tax. For states that do not give you a credit for AZ taxes, then you can get the exemption.




"...Nonresidents purchasing motor vehicles must, in addition to obtaining a special thirty-day nonresident registration, complete a Transaction Privilege Tax Exemption Certificate, Form 5000..." (downloaded from http://www.steptoe.com/publications/PI9515.pdf)




2. A.R.S. § 42-5061(A)(14): Exemption from sales tax:




NOTE: This exemption does not apply to part year residents or nonresident military purchasing vehicles for use in AZ.




This law allows non-residents to avoid sales tax if the vehicle is shipped by the dealer for use outside the state.




"...Registration in Arizona within three months will result in a presumption that the vehicle was purchased for use in Arizona. The Department prescribes Arizona Form 5010, Certificate of Delivery Out of State, as the appropriate exemption certificate that automobile dealers are required to secure from purchasers claiming exemption under section 42-5061(A)(14)...." (downloaded from http://www.steptoe.com/publications/PI9515.pdf)




REFERENCES:




1. Transaction Privilege Tax Exemption Certificate, Form 5000. http://www.azdor.gov/ADOR_Forms/60-69/60-2010_fillable.pdf




2. Form 5010, Sale of Motor Vehicle To Nonresident for use outside of State. http://www.azdor.gov/ADOR_Forms/60-69/60-5385f.pdf


Customer: replied 2 years ago.
Relist: Answer quality.
this link has a gentlemen in a similiar scenario:

http://www.justanswer.com/tax/06o6z-avoiding-sales-tax-arizona.html
Expert:  Anne replied 2 years ago.
What is your home of record ?
Expert:  Anne replied 2 years ago.
I apologize....for some reason, I missed the "non resident" part, and I answered your question as if AZ was your home of record.

Since you are a non resident of AZ, then you're absolutely right. That question was the same situation as yours, and frankly Ed gave excellent information.

I double checked to be sure that AZ hadn't changed this law since Ed posted his answer, and it has not changed. So you will not be subject to AZ sales tax on the car (although you will probably be subject to it in whatever state is your home of record)

Again,

I truly hope this information is helpful but please do not rate until you are satisfied. If you want to click on 1 or 2 just click on the continue to work with me button instead. You will then be able to add any other info or respond to what I have posted so far. Rating 3-5 gives me credit and a good rating but you can still converse with me."

 

Customer: replied 2 years ago.
I am trying to find out the form and paperwork I need to get this vehicle tax free.
Expert:  Anne replied 2 years ago.
The Transaction Privilege Tax Exemption Certificate, is now form 10609, and here's the link to it:

Download Form

The other form, Certificate of Delivery Out of State, is still Form 5010, and here's the link to that one:

Download Form

Again,I truly hope this information is helpful but please do not rate until you are satisfied. If you want to click on 1 or 2 just click on the continue to work with me button instead. You will then be able to add any other info or respond to what I have posted so far. Rating 3-5 gives me credit and a good rating but you can still converse with me."

 

Anne, Master Tax Preparer
Category: Tax
Satisfied Customers: 1887
Experience: Enrolled Agent with 25 Years Experience specializing Individual and Small Businesses
Anne and 2 other Tax Specialists are ready to help you
Customer: replied 2 years ago.
And these are the only two forms I need? Anything else? Will I need alot of dealer involvement (aside from the obvious portions?)
Expert:  Anne replied 2 years ago.
First thank you for the accept.

Not from any of the reading I've done...It looks like these 2 forms should cover you.

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Anne
Anne
Tax Professional
1887 Satisfied Customers
Enrolled Agent with 25 Years Experience specializing Individual and Small Businesses