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Gerald-Esquire
Gerald-Esquire, Lawyer
Category: Consumer Protection Law
Satisfied Customers: 4180
Experience:  30 years of experience
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I live in and recently bought a used car in New Jersey. In

Customer Question

Hi, I live in Virginia and recently bought a used car in New Jersey. In the contract, they put NA in the sales tax line. Now, a week later they are calling me telling me I need to pay the sales tax amount. Legally, is it incumbent on me to pay them that additional amount?
JA: Have you contacted the manufacturer?
Customer: The dealership? They contacted me; I haven't called them back yet as I'd like to know my rights first.
JA: Anything else you want the lawyer to know before I connect you?
Customer: Not that I can think of; no.
Submitted: 1 year ago.
Category: Consumer Protection Law
Expert:  Gerald-Esquire replied 1 year ago.

Hello,
Thank you for using Just Answer. Please bear with me as I verify somethings for you. I will respond fully shortly. Thank you for your patience

Customer: replied 1 year ago.
The contract does have s provision on the back entitled Payment of Sales and Use Tax which states that I am responsible for payment if the dealer forgets or miscalculated the tax "unless expressly stated" otherwise. Not sure if the NA in the sales tax line meets that standard.
Expert:  Gerald-Esquire replied 1 year ago.

Hello,

Thank you for using Just Answer. I want to provide you the best service I can. Please feel free to ask any follow up questions you have.

I am an attorney with 30 years of experience; I hope to provide you information that will help you in resolving your question.

Unlike other states, New Jersey does not have an exemption for out of state sales. So the Dealership should have collected the sales tax from you. Here is the New Jersey rules on which sales are exempt.

Having said that the difficulty is the dealerships' not yours. If they have already provided you a clean title their recourse is to sue you for the tax due. That is probably unlikely because filing an out of state suit is expensive and time consuming.

Legally you are responsible for the tax and you did agree to make an adjustment if an error was made. So as a legal matter you should make the payment. As a practical matter they may not be abe to force you to make the payment if you have the title and have registered it in Virginia.

If you do make the NJ payment Virginia may give you a credit so that you are not double taxed.Contact the VA DMVfor that question.

I want you to be comfortable and satisfied with my attempt to assist you. Please, if you have ANY follow up questions, feel free to ask. Please note that I am generally unavailable Friday evening through Sunday.

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Good luck,

Please note: Information given is not legal advice. Only your local attorney can give legal advice. I can't establish or accept an attorney-client relationship with you. All posts are available for public viewing.

Expert:  Gerald-Esquire replied 1 year ago.
It does look like you can get credit in VAfor the NJ tax. See form OSC: http://www.tax.virginia.gov/content/tax-credits Kind regards,Gerald
Customer: replied 1 year ago.
Hi, thank you, ***** ***** helpful. In response to part of what you stated, they were to register the car for me and send the title paperwork to me. I'm assuming they can not provide that unless/until I pay the taxes; is that correct?
Expert:  Gerald-Esquire replied 1 year ago.

Hello:

Thank you for the excellent follow up question.

Yes you are correct. If they have not already processed the title they will not be able to without paying the tax. They of course will not do so.

It is likely they discovered the error when they tried to process the title.

Kind regards,

Gerald