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      05-03-2009, 08:07 PM   #1
kapusmd
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Question PCD and South Carolina Use Tax

I recently received my confirmation from the BMW Performance Center. Attached was a letter explaining the South Carolina Use Tax.

Dear Performance Center Delivery customer,

The following information only applies if you reside in the following states: Arkansas, Indiana, Kentucky, Maryland, Mississippi, New Mexico, North Carolina, Oklahoma, South Dakota, Virginia, West Virginia, or the District of Columbia.

The State of South Carolina imposes a use tax of $300 upon the first use of a new vehicle in South Carolina, purchased from a state listed above. Since you will be taking delivery of your new vehicle in South Carolina, this tax may apply.

This first time use tax will not be collected by your retail center or the BMW Performance Center. Should the State decide to collect this tax from out-of-state consumers, it would be billed by the State of South Carolina and payable directly to the same.

The BMW Performance Center is not aware of any instance where the State of South Carolina has sought this first time use tax against any of our delivery customers. In the event taxes are assessed and taxes were paid in your home state, recovery of taxes may be available in full or part. Note that such recovery may not be available from states adjoining South Carolina.

We are sorry for any inconvenience this may cause you.

The BMW Performance Center


I live in one of the States listed in the letter. Has anyone ever had to pay this tax?
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      05-03-2009, 08:41 PM   #2
UF135i
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Quote:
Originally Posted by kapusmd View Post
The BMW Performance Center is not aware of any instance where the State of South Carolina has sought this first time use tax against any of our delivery customers.[/i]

I live in one of the States listed in the letter. Has anyone ever had to pay this tax?
Seems your letter answers that question?
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      05-03-2009, 08:53 PM   #3
kapusmd
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Quote:
Originally Posted by UF135i View Post
Seems your letter answers that question?
The letter says the PC is "not aware of any..." I'm wondering if there's anyone on this forum who's experienced this or know someone who has. It won't affect my decision in favor of PCD, just trying to be better informed.
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      05-03-2009, 09:32 PM   #4
m3bs
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It's the state sales tax. I had to pay it as a SC resident. Lucky for us, sales tax on new cars is capped at $300. They call it "Use Tax" for some reason, and even try to collect it on out of state purchases we make.
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      05-04-2009, 10:26 AM   #5
Lexington
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If you are a SC resident you pay a sales tax, if you are an out of state resident you may be subject to a use tax. I think the states listed do not charge a "sales" tax on vehicles or don't offer some type of credit for taxes paid, therefore, that is the reason they are treated differently.

This link may be useful: http://www.sctax.org/Tax+Policy/Info...r/il93-26.html

Doesn't seem like SC pursues this use tax on vehicles delivered at the Performance Center.
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      05-04-2009, 10:33 AM   #6
Tom K.
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[quote=Lexington;5049577]If you are a SC resident you pay a sales tax, if you are an out of state resident you may be subject to a use tax. I think the states listed do not charge a "sales" tax on vehicles or don't offer some type of credit for taxes paid, therefore, that is the reason they are treated differently.[quote]
Can't answer for the others, but Maryland charges a 6% sales tax on car purchases. If the car is bought out of state, the tax is paid at the time of MD registration - ditto if it is a used car and the owner is moving into MD. I don't know if there would be a partial refund for an out of state "use" tax or not.
Tom
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      05-04-2009, 10:45 AM   #7
Lexington
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I think the reason Maryland is included is because, according to the information letter, Maryland does not allow a credit for tax paid on the purchase of a motor vehicle in another state. Accordingly, South Carolina will not allow a credit against the use tax.
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      05-04-2009, 04:08 PM   #8
Blue82
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I live in one of the listed states (well, technically not a state) and did PCD on April 2. I didn't have any issue regarding the use tax.
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