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Discussion Starter · #1 ·
Can anyone tell me ( In Illinois) if i buy a bike out of state for lets say 20-25 K

What am i responsible for tax or other cost wise when i get it back here to cook county?
I would hate to spend a bunch of money out of state and then find out i owe uncle same a ton of more cash.
 

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Dean,
Call or go toa currency exchange and ask them. That is probably where you will go to get plates anyway. Just spare them the details. Tell them you are going to register a motorcycle you bought out of sate for $x dollars, ask if they can tell you the tax you will need to pay. I know youneed to fill out a state form rut-50 but the rate paid i am not sure of. Just a word to the wise, the currency exchange will usually ask how much the purchase was, if you choose to fudge the amount to save some $ now, rest assured the state will bill you for what they feel it should be and you may wind up with a date with a judge. Keep all your documentation in case you do get audited. I know several guys who bought distressed Corvetes in the past and wound up at a hearing.
 

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I did a little Googling and found the following (see below). While I'm not an expert in this field, it appears that you'll have to pay 7% of the purchase price when you register the bike in your state. So, if my math is correct, if you pay $15K for a used Vison, you'll be paying the State of Illinois $1,050 for taxes when you register it.

If you buy it from a Dealer, when they quote you the price, it surely won't include the sales tax as even most "out the door" prices don't include tax obligations...unless you specify to quote you the exact amount that you'll be paying to ride away on the bike.

If you buy from an individual, you'll be responsible for the taxes...so be sure to factor in that expense.

Again, don't take my word for it. The next time you talk to a dealer, you can ask about your Local/State taxes.

Here's the info (including some links):


In Illinois, motorcycles are titled and registered in the same way as other motor vehicles. There are about 240,000 registered motorcycles in Illinois, so you won't the only two-wheeler on the road.
If you bought your motorcycle from a dealer, the dealer will take care of getting your new purchase titled and registered. The dealer will also collect the sales tax. For a private-party purchase, you'll need to take care of this paperwork yourself. Read on.

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1)Title and Registration


The key document for registering a motorcycle is the Application for Title and Registration. This form is not available online, but it can be obtained by visiting or contacting anySecretary of State officethat handles registration and titling.
In addition to the Application for Title and Registration, you will need to submit proof that you own the motorcycle. This will be the title that the previous owner signed over to you.
The odometer disclosure statement on the back of the surrendered title should be filled out. Double-check that your name and the vehicle identification number (VIN) are the same on the signed-over title as they are on your application.
The Secretary of State of Illinois has put together a pamphlet to help you with some of the details:
Title and Registration: Tips for Completing Your Applicationis available for download.

Fees

The fee to title your motorcycle for the first time is $65, plus $38 to register it and get your license plate. You will then pay $38 each year to renew your registration.
Sales Tax

All motorcycles sold in Illinois, including those sold between individuals (private parties), are subject to sales tax. Vehicle sales tax rates in Illinois vary by county and municipality.
If you bought your bike from a dealer, the dealer will collect the sales tax from you. If you purchased from a private party, you must pay the sales tax when you title and register the motorcycle.
If you want to know the amount before you appear at a motor vehicle services office, you will need to consult the most recent edition of the 120-page
Sales Tax Rate Reference Manual (ST-25). This publication will tell you exactly what you owe based on where in Illinois you purchased the vehicle.

Where to Apply

You can submit your application directly to anySecretary of Stateoffice offering motor vehicle services. You can also send your application by mail to:
  • Secretary of State
  • Vehicle Services Department
  • 501 S. 2nd. St., Room 014
  • Springfield, IL 62756
 

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As a sidebar to this...If you buy from an individual make sure the title is "clean" and there are no loans or liens against the bike.

That would be a real pain if you made an out of State purchase, went to the expense to get it home, attempted to register it and then learned there was a loan on the bike that needs to be cleared before you can register it in your name. Clearing a "cloud" on a title can be a real pain.

Most titles are clearly marked or are printed in a different color if a lien is in place. If a seller shows you the title and if it shows a lien, even if they stated it has been paid off and they are blaming the State that the new title has not been received...be suspicious. While I'm not a Lawyer, you could be adopting someone else's loan balance. (Sorry, to sound like a conspiracy theorists, but there's a lot of money in play for this type of purchase and attempting to save a some big bucks by buying used directly from a seller does come with its share of risk).

Another factor to consider is that once you've selected the bike you want to buy, get the VIN and contact your insurance agent. He/She will be able to give you a quote within minutes and if there's any funny business going on with the bike (previously wrecked, stolen, repo'd, etc.), it will most likely come up when the Insurance Company checks it out.

As discussed in other threads, with insurance, you'll get what you pay for.

On a somewhat related note, while we've all heard about those overseas scams where a fake Cashier's Check temporarily fools a bank (and the seller), sellers need to be cautious as well to make sure that they are not getting scammed when selling a bike. The only fool-proof way of making sure that the funds are "real" is to have the money wire-transferred at the time of the sale. (A Seller may want to consult their Banker before completing this type of transaction).

I'm not an expert in this field, so feel free to chime-in on this topic and correct me if I'm providing less than accurate information.
 

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Discussion Starter · #7 ·
Good info to have Andy, thanks for the heads up. I have a few bikes im considering out of state for sure, and like you said figuring taxes and fees into my budget is a big one. If i spend 15 - 25 K on a bike, and thats my whole budget, id be really in a bind when i get home and find out i need to come up with another 1500 bucks.
Im sure this is good info for many on here considering buying out of state.
Thanks again, Dean
 

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Yes, like others stated you pay tax where you register the bike.
Now something you may or may not want to do. When I bought my 10th I also bought a few accessories. I had these put on the sales receipt. I had to pay a tax difference on them in CT but I figure they were covered with the bike for insurance purposes. I should ask my agent. I figure I can add a couple more and they should be covered under $1000 worth of accessories are covered under policy. With the price of chrome today 3 pieces can be over $1000.
Hope this helps and good luck with your purchase.

One item some people forget to get is an odometer statement. This is required to register in CT. CT DMV has the form online. :)
 

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Most states will allow you to only pay the difference also. In TN sales tax is high, due to no income tax. So if you buy from a dealer in a state with low tax and register it in TN then you will owe the difference. The opposite is also true. If you buy in TN and register it in KY then you will owe no additional tax as the rate in KY is lower than TN.
When buying from an individual states usually go by average blue book value when determining what you owe. Years ago it was common to say "I paid 100 bucks for it". So now it is average retail blue book. At least in TN. You can have a "gift" from a family member if you both show up at the court house and swear that it is the case, and you will owe no tax. Again all states are different.
 
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