Use Tax Question – I purchased a car and paid tax in a different state. Do I need to pay use/sales tax in my home state?

[haoping7]

Hi, I purchased a car and registered it at my family's address in a Indiana, where I paid a 7% tax there (just more stable). Since I live in Michigan with a 6% tax rate, do I need to pay another use tax or sales tax again in Michigan? Related to this question on tax filing: For many out-of-state purchases, if sales tax has not been collected, Michigan wants to collect the use tax due. Please make the entries here that are necessary to calculate the use tax or enter the total use tax due on the next screen.)Hi, I purchased a car and registered it at my family's address in a different state, where I paid a 7% tax there (just more stable). Since I live in a state with a 6% tax rate, do I need to pay use tax or sales tax again in my state? I just saw this question on tax filing: For many out-of-state purchases, if sales tax has not been collected, Michigan wants to collect the use tax due. Please make the entries here that are necessary to calculate the use tax or enter the total use tax due on the next screen.) Thank you!

[AmyC]

1. No, IN charged more than MI would so the other state credit is complete.

2.  Most places do collect sales tax. Only those items taxed less than 6% would apply. Here are the rules so you can determine which purchases qualify.

Use tax of 6% must be paid to the State of Michigan on the total price of all taxable items brought into Michigan or purchases through the internet, by mail or by phone from out-of-state retailers that do not collect and remit sales or use tax from their customers. Credit is given for tax paid to another state.

Sales and Use Tax Information - State of Michigan