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Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 11149
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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Do I file Form DTF-802 to pay NYS sales tax?

Customer Question

I just looked into Form DTF-804 and DTF-802 and it seems to me I will need to pay because NYS does not offer credit to NJ or am I understanding the whole thing wrong? I got into a situation when I need a professional advice. I had a NJ License and registration for the car in NJ. I bought it new. I work in NYC for the past 5 years and rent an apartment for my mother in Brooklyn (on my name). I paid because I work in NY I paid income taxes for NY and NJ. But to be honest I lived more in NY in the past 2 years because of my mother. Anyway, the question is NOT about income taxes. Question is about sales taxes for my car. I got it in 2014 end of year. Since I had NJ license dealer paid full NJ taxes and it was completed I was happy etc. Now I am finally abandoning my NJ place and moving to NY. I changed my license but for registration I see some tax forms. Will I have to pay full NY tax or there is a way to avoid it or just pay the difference. I do not want to lie on the forms that I was not affiliated with NYS at all. What would you advise if there is any besides paying full NYS tax? Thanks a lot in advance

Submitted: 1 year ago.
Category: Tax
Expert:  Lane replied 1 year ago.

Yes, NY makes it tough BUT, after jumping through some hoops, so to speak, I think you'll still be OK.

In the instructions for DTF-804, you see that they only have reciprocal agreements with eight states: Arizona, California, Florida, Hawaii Massachusetts, Michigan, South Carolina, & Wyoming.

But, if you'll look where it says "Note:" (about 1/2 way down, left column on page 2, instructions, of the form) it says the following:

Before completing this form, refer to the charts below to determine if New York State provides a reciprocal credit for sales tax paid to the state where you made your purchase. For motor vehicles, New York State provides a reciprocal credit for tax paid to a very limited number of states. If no reciprocal credit is available, use Form DTF-802, Statement of Transaction - Sale or Gift of Motor Vehicle, Trailer, All-Terrain Vehicle (ATV), Vessel (Boat), or Snowmobile, instead of this form. If you paid tax to a state for which no New York State reciprocal credit is allowed you should apply to that state for a refund

Then it says -

If the state (NJ) denies the refund you may be eligible for a credit for some or all of the New York tax you must pay now. To apply, file Form AU‑11, Application for Credit or Refund of Sales or Use Tax, and attach proof of tax payment to and proof of the refund denial by the other state.

Here's NJ's request for refund:

http://www.state.nj.us/treasury/taxation/pdf/other_forms/sales/a3730.pdf

The form can be used for multiple types of taxes.

For refund of sales and use tax send to:

NJ Division of Taxation

Sales Tax Refund Section

PO Box 289

Trenton, NJ

Customer: replied 1 year ago.

Aha okay. This is crazy. Another and the last question. Do you think they will charge me tax according to the original sales price OR according to current value of the car?

Expert:  Lane replied 1 year ago.

So, I would send certified to NJ and wait to see if they issue a refund. If they don't, then file Form AU‑11, along with the DTF-802, and attach proof of tax payment to and proof of the refund denial by the other state.

Customer: replied 1 year ago.

The last question is because I register the car in NY now so to say the current value is lower of cause.

Expert:  Lane replied 1 year ago.

Yeah, NY is tough,

The refund will be paid (if you can get it from NJ) on whatever was paid.

Have you seen this?

http://dmv.ny.gov/registration/estimate-registration-fees-and-taxes

My bet is that since you paid full new car sales tax in NJ, the credit will be enough to cover, but that's speculation at this point.

Here's the actual estimator: https://transact.dmv.ny.gov/RegFeeCalc/ but that's not for the sales tax itself, just registration fees.

I really think you should take a look at that very first page I showed you:

http://dmv.ny.gov/registration/sales-tax-information

Here's the AU-11: https://www.tax.ny.gov/pdf/current_forms/st/au11_fill_in.pdf