City use tax?

Bought a new Mustang from Virginia a year ago. paid Virginia tax, paid AZ tax also upon registration with MVD, paid tags, title, license all when purchased and registered 1 year ago. Got a letter in the mail the other day saying I owe $642.42 for a use tax on tangible personal property purchased from an out of state retailer. Anyone ever hear of this? I have not heard of such a thing and have already paid thousands in taxes to VA and AZ when I bought the car. Anyone else know whats going on here?

I've never heard of such a thing. But I've never purchased a vehicle out of state before either.

I know that texas will charge residents the difference in sales tax if you purchase out of state; but in the end only only pay equal to what texts would had charged for in state sale.

import111 said:

Bought a new Mustang from Virginia a year ago. paid Virginia tax, paid AZ tax also upon registration with MVD, paid tags, title, license all when purchased and registered 1 year ago. Got a letter in the mail the other day saying I owe $642.42 for a use tax on tangible personal property purchased from an out of state retailer. Anyone ever hear of this? I have not heard of such a thing and have already paid thousands in taxes to VA and AZ when I bought the car. Anyone else know whats going on here?

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I bought mine in Texas (NV resident so may be different here) but had a sort of similar situation... If the out-of-state dealer charges you taxes, it is supposed to be based on the zip code where you register the car. Then the out-of-state dealer is supposed to pay your taxes in AZ. Maybe you have a different law in AZ, but I'd try to talk to a lawyer about it.

When I bought my car in TX, I flew there and drove it home. I thought I had calculated every cost onto the car out exactly. But they said I owed a "services tax" or some BS. They were basically just trying to rip me off (fresh off of a red-eye flight, wanting to leave ASAP to drive back to Vegas) so I said "whatever" and put the additional $1300+ on my credit card. Well they were just trying to make up lost $ on the great deal they gave me for the car. Had to fight with them for months to get the money back. And they didn't even give it back to me. They said the only way was to pay the bank who had my loan. whatever, didn't owe payments for a couple months.

And to warn others this was Autonation Ford, Katy, TX.

^^^ should have just gotten it local at Friendly Ford, where I got mine.

Sounds like either you or the dealer you purchased from did not report the tax to the State of AZ. It can probably be fixed by sending them a copy of what you paid when you purchased the car.

"Casual sales between individuals are not subject to the use
tax. Property purchased by a nonresident individual whose
first actual use or consumption of the property occurred
outside the state is not subject to the use tax if the property
is not used in conducting a business.
If you purchase a vehicle from an out-of-state dealer or
manufacturer, the Department of Transportation will
require, at the time of vehicle registration, proof that tax was
paid in the state of purchase and that the amount of state tax
paid is equal to or greater than the applicable Arizona use tax
rate. If tax was not paid in the state of purchase or was less
than the Arizona use tax, the Department of Transportation
will require that the use tax be paid at the time you register
the vehicle." -AZDOR.GOV

That is very useful information. Thanks.