It does not matter where the sale was negotiated or from what warehouse it was delivered, if the seller has a presence in the county, the seller collects county tax on all deliveries in that county. To qualify for this exemption, however, the contractor must secure an Exemption Certificate from the DOR for each exempt project. If sales tax has been paid on the materials to another city or county, a credit must be given to the purchaser against the use tax liability. The amount of the credit must be equal to the amount of the sales tax paid to the local jurisdiction where purchased. For motor vehicles requiring license plates, local tax liability is dependent upon the residence address of the purchaser, not the address of the seller.
Motor vehicles are subject to state and local sales taxes at the time of purchase.
However, there are situations where the seller does not collect sales tax at time of sale. For example, in a motor vehicle sale between two private parties, the seller does not possess a license to collect sales tax on motor vehicles. Also, when the buyer and seller are based in different taxing jurisdictions, the seller has no license to collect the sales tax imposed by the local city or county where the buyer resides. However, if the dealer doesn t collect use tax, purchasers buying a motor vehicle outside the limits of the local taxing entity where they reside will be required to pay any local use tax when titling and registering the motor vehicle. If the locations of the lessor and lessee are in different local jurisdictions, the lessor is not responsible for the collection of local use taxes of state-administered jurisdictions.