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Travel Fever
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Discussion Starter #1
Well my ED was in 2014. Over the weekend, I got a letter from NYS taxation, saying I imported a car from abroad and I would be required paying sales tax on it.

Clearly, someone at the port didn't do the custom declaration correctly. (I've imported a few machineries for my business so I know)

I called BMW ED today. The lady on the phone kept telling me to call the dealership because they have no copies of the official invoice.

I said OK, I can provide copies of sales but it is never dealer's job to handle custom declaration. It is someone's screw up between BMW and clearing agent, may be BMW can do the last miles of the leg work for by submitting the documentation for me, helping me to take care of this problem. I got a flat NO.

It is very disappointing to hear BMW not willing to step up and help customer to resolve this problem.
 

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Travel Fever
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Discussion Starter #4
It looks like there are several samples happened before.

It seems to me that these ED cars need individual clearing instead of a batch electronic clearing (the typical way), they become red flags in NYS' eyes.

So lesson of the day: NYS people should not do ED?!?
 

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You will have a better response from BMWNA if your dealer is the one doing the talking...

It looks like there are several samples happened before.

It seems to me that these ED cars need individual clearing instead of a batch electronic clearing (the typical way), they become red flags in NYS' eyes.

So lesson of the day: NYS people should not do ED?!?
 

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Super Moderator
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More details?

The usual practice is that one pays their local dealer (or a Bimmerfest out of state sponsor) for the price of the car and sales tax. Are they trying to make you pay duty?
 

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Send them a copy of the sales contract or the registration forms that show the sales tax was paid. That is all they should need. Good luck. N4S
 

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Travel Fever
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Discussion Starter #8
More details?

The usual practice is that one pays their local dealer (or a Bimmerfest out of state sponsor) for the price of the car and sales tax. Are they trying to make you pay duty?
No, they are looking for sales tax. It is straight from Albany so it is not import duty. I called Albany directly after the disappointing phone call from BMW. The lady asked me to send her copy of the transaction, which I'm faxing now.

Again, I understand mistake happen. I'm ok with that. I would expect BMW to say to me: Give us the letter and we will take care for you. But it is not the case here.

My worker compensation insurance company made a mistake few years back resulting me getting a fine from NYS ($5000). I called them and they said to "just send us that letter and we will take care everything from here.". I don't see BMW doing that.
 

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No, they are looking for sales tax. It is straight from Albany so it is not import duty. I called Albany directly after the disappointing phone call from BMW. The lady asked me to send her copy of the transaction, which I'm faxing
Ask your dealer?

I had to pay sales tax on both of my European deliveries because I bought them from out of state dealers.
 

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You should have paid your out-of-state dealer the NY sales tax when you purchased the car, and you should have a copy of your purchase order paperwork showing that line item.

This is not a BMW issue -- it's a dealer issue. The dealer should have charged and transferred the sales tax to Albany.

If the dealer didn't charge any NY sales tax on your deal, well then when you register your car in NY, you will have to pay it then.

I purchased my first ED from a NY dealer who did not charge the sales tax. When I picked up, he just gave me a 30-day tag. When I registered it in NJ, I had to pay the 7% at that time.
 

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Lost but making good time
'11 335xi; '03 330Ci
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No, they are looking for sales tax. It is straight from Albany so it is not import duty.
...
I would expect BMW to say to me: Give us the letter and we will take care for you. But it is not the case here.
That expectation is mistaken. It's not BMW NA's fault nor is it their job to fix it. BMW NA is the importer (responsibile for customs matters) but not the seller. The car was sold to you by a dealer, not BMW NA, and it's the seller's responsibility to collect sales tax (or document that the sale is exempt).

The responsibility to fix this lay with your dealer, which is exactly what BMW told you from the outset.
 

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It is impossible to avoid paying sales tax on a car. It is not BMW's issue.
 

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You should have paid your out-of-state dealer the NY sales tax when you purchased the car, and you should have a copy of your purchase order paperwork showing that line item.

This is not a BMW issue -- it's a dealer issue. The dealer should have charged and transferred the sales tax to Albany.

If the dealer didn't charge any NY sales tax on your deal, well then when you register your car in NY, you will have to pay it then.

I purchased my first ED from a NY dealer who did not charge the sales tax. When I picked up, he just gave me a 30-day tag. When I registered it in NJ, I had to pay the 7% at that time.
This is most likely.

Though in my state of WA, they even charge "used" sales tax for car being registered from out-of-state into WA or new title (transfer to new owner) and that is based on county of resident where the car will be and blue-book value.
So a same car being sold 3x, once new then twice as used in WA will generate sales tax 3x, so how in the world city/county can go bankrupt :bigpimp:
 

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Travel Fever
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Discussion Starter #15
No, the letter says "based on the data from US Custom and Border Protection................"

If it is a simple sales tax issue, it is not going to say information from US Custom. FYI, I paid the sales tax up front to an out of state dealer.

I really believe it is an effort by NY State to make sure there is no revenue falling through the cracks. They are flagging these cars since they come in pretty much 1 or 2 at a time vs. 100 cars filing for custom clearing.
 

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Travel Fever
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Discussion Starter #16
What does "custom declaration" have to do with state sales tax?. OP post confusing.
The letter says I should pay sales tax based on information from US Custom.

The interesting part is that they are not checking if dealer fails to collect or I fail to pay. They are relying on the information filed at the port to US Custom.
 

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Travel Fever
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Discussion Starter #17
It is impossible to avoid paying sales tax on a car. It is not BMW's issue.
No one is avoiding the sales tax.

NY State is investigating because of the information from US Custom.
 

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Lost but making good time
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No one is avoiding the sales tax.

NY State is investigating because of the information from US Custom.
First off, just FYI, it's US Customs, with an s.

As your situation is not unique, I have a strong hunch as to what's really going on here: Some (recently-hired?) low- to mid-level functionary(ies) up in Albany are looking to make an impression and/or go after presumed "easy targets" who are believed to owe back taxes. Said individual(s) are trolling the Customs records, spotting ED cars "imported" by individuals (yes, ED cars are individually inspected & cleared through Customs, separate from the rest of the carrier's cargo) and concluding NYS taxes are owed on these goods that they mistakenly believe were purchased abroad.

In other words, you've got someone up in Albany who is wholly ignorant of how the ED program works--hell, they might be ignorant of the entire concept--and believes it's somehow possible to get these cars registered here without paying sales tax.

Send them a copy of your purchase invoice, and the receipt showing that you paid NYS tax on that amount at registration, and they'll shut up.

I'd almost bet a mortgage payment that BMW is in no way involved here. They have imported thousands of ED cars to the US; I'm fairly confident they know how to fill out the paperwork.

This whole affair sounds like a bureaucrat fishing for revenue. They will likely keep sending these letters until someone finds the person(s) responsible and educates them.
 

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Well, that's funny. I just posted about this before reading yours. Kentucky sent me the same crap. I emailed Adrian and he just said to forget about it, it's kind of normal. I plan on just calling the numerous on the letter Monday to say Go Away.
 

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No one is avoiding the sales tax.

NY State is investigating because of the information from US Custom.
What I do not understand is, since you are a New York resident, you should have paid sales tax when you first registered the car. When a car is registered for the first time there is a requiremsent that the tax must be paid, if not paid prior to the registration
 
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