Crossing a state border for savings

[sweeps]

A post in another thread (link) brings up an interesting savings strategy. How many people cross over into another state (or country perhaps) to save on sales tax, fees, buying restrictions, etc.?

[LuxLiving]

I do - I cross the state line a few times a year to do BIG grocery shops. My state taxes groceries. My step-brother's state does not. Fortunately I'm near his state a couple of times a year. I defininetly make a Run For The Border!! It's worth it!

I get to kiss the nephew and nieces while there! Bonus Points for me!

[cptacek]

My sister used to drive to an Indian reservation to get gas, because there were no state taxes on it. And now she drives from Kansas to Missouri to get gas (she lives in KC, so it is not too far out of the way) because Missouri has cheaper gas taxes. But, she says that Missouri roads are horrible because they don't have any money to fix their roads.

[tabbycat31]

I do some clothes shopping in NJ or CT where there is no sales tax.

[shengmei]

I have not been outside Texas in many, many years. I want to be outside Texas so badly that you can convinence me with anything to get out.

[Bookie]

The family goes out of state to buy furniture, carpeting, and major appliances. All can be had from factory-site stores in adjacent states. I'm not always convinced that the dollar savings are worth the effort, but I don't have to participate either.

[jodi]

Nope, not close enough to make this convenient (two hours to Pennsylvania and that's the closest border). I don't even know what states near me have advantages that NY doesn't.

[disneysteve]

When I lived in PA, I would often try to fill my tank when I was in NJ since gas is much cheaper here. My mom still did this (until she moved here this summer) and my cousin still does it.

We will occasionally go to DE if making an expensive purchase, like a computer, to save the sales tax. But today, it is much easier to just shop online to avoid paying sales tax.

[greedy4chips]

Originally Posted by cptacek

My sister used to drive to an Indian reservation to get gas, because there were no state taxes on it.

There is an indian reservation in our state that charges the same for gas even though they have no state tax. They only do this for the outsiders. Insiders can get the discount rate if they go inside to pay.

No racism from me, just the facts.

[tabbycat31]

Originally Posted by jodi

Nope, not close enough to make this convenient (two hours to Pennsylvania and that's the closest border). I don't even know what states near me have advantages that NY doesn't.

NJ and CT (I think PA as well) do not have sales tax on clothes. However in central NY it would be harder than in metro NY (where I am). I'm 1/2 hour from either the NJ or CT border.

[Ima saver]

I go to N.C. to buy liquor cause they don't sell it here.

[Bookie]

Originally Posted by Ima saver

I go to N.C. to buy liquor cause they don't sell it here.

Rum runner.

[neatdesign]

I grew up in the Metro DC area, and it always irritated me when I'd see so many people living in our Northern VA neighborhood with Maryland license plates on their cars. Maryland has no state or local personal property taxes on vehicles, whereas Virginia does. (It used to be a lot higher than it is now, but it still exists.) People would go "over the border" to purchase and register their cars in Maryland to avoid paying these taxes. I don't know how they got their cars registered in Maryland when they clearly lived in Virginia -- maybe by fraudulently presenting their MD work address as their home address, or using a MD PO Box -- but it really annoyed me, and still does. Why should I have to pay more taxes because I obey the law?

~ Jenney

[Snoopy2645]

PEOPLE do the same thing here with cars I live on the boarder of 3 states for buying groceries & such its cheaper & closer to go across state its super close!!! But I am not one who does my car titles in other states I would probably get caught if I tried!!!

[Ima saver]

Well we always buy our carpet, cabinet doors, etc. for our spec houses over in North Carolina. We pay no sales tax on those items. However, we get the carpet there because they have the best carpet installer and we get the doors there because it is the closest cabinet place.
One couple we were building for in Ga., had all their anderson doors and windows delivered to N.C. to avoid thousands of dollars in sales tax.

[neatdesign]

Originally Posted by Snoopy2645

PEOPLE do the same thing here with cars I live on the boarder of 3 states for buying groceries & such its cheaper & closer to go across state its super close!!! But I am not one who does my car titles in other states I would probably get caught if I tried!!!

I don't have a problem, per se, with people going to a different state to buy goods tax-free. That's because it's not illegal to do that. You don't have to prove state residency to buy groceries or petrol or whatever.

It's when people use fraudulent means to avoid paying taxes that I have a problem. The law is what it is. I personally am not one of these people who thinks, "If I can get away with it, it's not cheating or wrong." Sorry, it IS cheating, it IS wrong.

~ Jenney

[Ima saver]

I don't know if you will think I cheated or not. I did buy a car in another state because the sales tax on the car was cheaper. However, I did own a house and 10 acres in that state, so I used that address. If you have 2 houses in two different states, is that still cheating?

[Bookie]

There's a nice distinction to be made between tax avoidance and tax evasion.

[neatdesign]

Originally Posted by Ima saver

I don't know if you will think I cheated or not. I did buy a car in another state because the sales tax on the car was cheaper. However, I did own a house and 10 acres in that state, so I used that address. If you have 2 houses in two different states, is that still cheating?

I guess it's debatable. On the one hand, you own property in that other state. On the other hand, though, it sounds like you're legally a resident of the other state. You can't be resident in two states simultaneously, I don't think. But I'm not entirely sure.

All I know is that there are/were A LOT of people living in Northern Virginia with MD license tag This wasn't just in my neighborhood -- it became so pervasive that Virginia set up a hotline for people to give anonymous tip-offs about Virginia residents who were evading property taxes by registering their cars in Maryland. (I never had the guts to call, though... )

~ Jenney

[Ima saver]

Well I sold the house in North Carolina, so i won't be doing that again. I had thought about moving to that property. Funny thing was, it was right on the state line, 5 acres in one state and 5 acres in the other state.