2016 Trade in Value?

I run across this from time to time at my job. Supposedly, if you paid taxes on the vehicle when you bought it, you aren't supposed to have to pay them again in another state if you move. Since he didn't pay sales tax in Montana, I guess that's why Texas is trying to tax him now. You can call five different tax offices in Texas, and get multiple answers, depending on who you speak to. The problem is, you have to register it in the county you now reside in, so he can't "shop" tax offices.

As far as trade in, the problem with KBB.com, is most people input excellent condition. Look up your trade in value, and select GOOD condition, and deduct for anything it needs (tires, windshield, dents). That will be close. It all depends on how aggressive the dealer is. I traded my 2017 DCSB SR5 4x4 and got $32K for it. That was $3000 more than my own company appraised it for. Tacoma's have insane resale value, and you will do much better on a trade in than most any other vehicle made. Good luck.

 

OP, why in the world would you trade a '16 for a '17 and take a financial hit!? The only difference is that the '17 has a power sliding rear window.

The only way I could see justifying a trade is if your '16 is having a lot of issues or if you looking for a significant change like going from automatic to manual or 2 to 4 wheel drive.

It'd be crazy to trade just to get a model year newer and a little lower mileage. Your '16 will run for 100's of thousands of miles!

 

You should probably read through the thread.

 

I've traded in a vehicle in another state, no issues at all. The dealership doesn't care where the vehicle comes from, half the used vehicles a dealer sells come from auctions where the vehicles are sourced from all around the region. You will not have a problem if you do trade in in Texas. There used to be an old loop hole, don't know if it still works in some states (doesn't work in mine anymore), but there is an option in the paperwork when registering a vehicle to say the vehicle was a "gift". You used to be able to select this and pay no state tax since there was no money involved. They changed it to require a notarized statement, but it only had to be self attestation, so whatever. My state now charges state tax based on vehicle worth, not price paid. But worth a look to see if you could do something like this in Texas; obviously though this would mean no 17 Tacoma, and just keeping the 16 and saying it was a gift. Let us know what happens

 

The gift loophole is if it's being transferred from one person to another. He could do this if he wanted to transfer it from him to his wife, but he probably has a loan, and thus begins the nightmare of refinancing it, while registering it in a different state.

 

From what I read, out of state resident bringing truck into Texas pays a $90 fee in lieu of taxes, along with other fees. Texas resident bringing truck in from out of state pays full tax rate.

 

I was wondering when someone would state the obvious.

 

Bummer. I live in NM and could do it here up until maybe 2010 - 11. Thought maybe it could work gifting it from husband to wife or something along those lines. Ah well

 

He paid the Montana sales tax when he bought it. He did. It was just vanishingly small. There is no basis for TX to tax him on his pre-existing assets. I'd just show up with the registration and tell them, if they ask (which seems unlikely), all required sales taxes were paid. If they don't ask, don't bring it up.

 

Having purchased a 2009 Challenger SRT8 in South Carolina way back in...well 2009, I brought it back to Texas with me and I was indeed hit with the sales tax when registering it. I have lived in Texas a very long time now, and from that experience, unless it has changed, you do get hit with sales tax. I paid 350 in S.C. if I recall correctly in sales tax, a flat rate for them then and after bringing it to Texas, temp tags still on the car, the DMV railed me for about 800 bucks in taxes to include all the usual TTL stuff. This was for Bell county, TX so YMMV based on DMV, things are weird here since we don't have state taxes, they make up for it in other ways.

 

Issue is this is a truck he bought as a Montana resident in Montana. It is plated/registered in Montana. He is simply moving to Texas.

It's different then traveling out of state to buy a car.

 

I hear that all the time, but states are for some reason getting away with making people pay tax again anyway. Texas is not the only one doing it. I always thought you couldn't charge sales tax again because of the anti restraint-of-trade laws, designed to make travel and business between states easy. Some law must have changed, or they are ignoring it, but it happens all the time. Possibly just mis-informed tax clerks?

 

Some states do shady shit like that. When I was still a WA resident and stationed in AL I bought a vehicle. It was registered and plated in AL to make it easy because I was about to move and didn't want to wait on plates in the mail. I drove through WA and stopped at the DMV to change the registration and was told that because the vehicle had been purchased less than 90 days prior I would have to pay full sales tax on it to register in WA. I walked out after hearing that.

 

I'm curious now how this ultimately plays out.

Real question is why would you leave a beautiful place like Montana in order to be in Texas? Let this tax fiasco be the warning that convinces you you're headed the wrong way.

In my case, I did it for family because they all refused to move to AK. Idiots.

 

I was thinking about trading in my 2016 Tacoma as well. But my reasoning is i bought a SR 4x2 2.7L 4cylinder truck and now I want to lift my truck and add little bit bigger tires without losing so much power. I was thinking of trading it in for a 2017 trd sport 4x2 v6.

 

Because it 70 degrees and sunny today. There are much more beautiful places to live, but almost no snow and great job opportunities keep people coming here. I'd rather they stop, but they keep coming. It is funny that business comes here for the low tax rate, yet OP is getting kicked in the nuts with a double tax.

 

To each their own... but why lift a 2wd truck?

 

KBB will give you a trade in value, but the value is based on your paying MSRP for the new vehicle. So, yes, if you want to pay full sticker for a new truck, then they will give you KBB trade in value for yours. Look at it this way, work a deal without a trade, say you have no trade in, then after you get the best price for the new truck, then tell them
oh...I want to trade in my other truck. You will then see what you are really getting for your trade in. Which is KBB trade in minus the the amount they took off the sticker of the new one! Usually about 10-15% less than KBB trade in value. The dealership I work at just took in a 2017 DBC 4x4 off road, sun roof, tech package, 21K miles, he got $31,500 (real money) on the 16 Tacoma he traded in.

 

The heat/humidity and severe lack of public land are what bother me most. Agree taxes and jobs are great. I guess I just need a summer home in the north (then I'd be all set).

Good luck OP.

 

Montana is beautiful! However there aren't many engineering jobs there currently. Texas is booming and growing like crazy