Most states collect sales tax when the car is titled. Oregon has no sales tax, so there you are. Given their proximity to California, Oregon is pretty fierce in requiring that the owner actually have an Oregon residence and driver's license before giving title. I don't know what other states are sales tax free.
There are some other ways to avoid paying some or all of the sales tax that you might otherwise be liable for. Most states have a line on the title that states the purchase price. It is the responsibility of the seller to fill in that line, in front of a notary is notarization is the rule. If the seller puts in a number lower than what you actually pay, or labels it a gift, the sales tax could be very low or non-existent. I can say that in Ohio, the "gift" route goes very smoothly if the new owner has the same last name as the previous owner, especially if the name isn't "Smith".
Another way to reduce sales tax in Ohio, if you are both selling and buying, is to process the sale through a licensed car dealer. Then you pay sales tax only on the difference between the buy and sell prices. Naturally this works a lot better if you are purchasing a car from the dealer, but if you have an established relationship, it still may be possible.
That's about it.
posted by 65.25.6...
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