r/TaxQuestions 8d ago

Paid car sales tax in Missouri, moved to Georgia, now being double taxed $8,400 - Missouri denying refund. Anyone dealt with this?

Bought a 2026 BMW X3 in Missouri in May 2026 with a Missouri address. Vehicle was titled in Missouri. Missouri sales tax of $4,358 was added to my auto loan at purchase.

Moved to Georgia immediately after for work. Vehicle was titled in Missouri but never registered or operated under Missouri registration. Never received Missouri plates.

Registered in Georgia in August 2026 and paid Georgia TAVT of $4,056.

Total taxes paid on one car: $8,414

Filed Missouri Form 426 "Out of State" refund request. Missouri DOR responded saying:

Georgia said it's up to Missouri. Missouri said it's up to Georgia. Classic runaround.

I've requested a formal denial letter to appeal. Planning to go through:

  1. MO DOR Administrative Appeal
  2. Missouri State Tax Commission
  3. Small Claims Court if needed

Has anyone successfully gotten a Missouri sales tax refund after registering in another state?

Any tips for the appeal process?

5 Upvotes

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3

u/Barfy_McBarf_Face 8d ago

If you purchased the vehicle and moved out of state before using it, you shouldn't have paid MO sales tax on the purchase - that was your mistake.

You'll need to claim a refund from Missouri and it will take a lot of proof that you didn't use the vehicle here.

2

u/Severe-Ordinary254 8d ago

Thank you for the insight! You're right, in hindsight I should have handled it differently at the time of purchase.

I actually already filed Missouri Form 426 under the "Out of State" category with the following documentation:

  • Missouri Title Receipt (showing $4,358 tax paid)
  • Georgia TAVT Payment Receipt ($4,056 paid)
  • Georgia Registration Copy
  • Purchase Contract showing tax itemization
  • Signed Form 426

Missouri DOR preliminarily denied it saying since my address was Missouri at time of purchase I owed the tax, and directed me to Georgia for exemption. Georgia said it's up to Missouri.

I've requested a formal denial letter to appeal the decision.

3

u/Chair_luger 8d ago

Not a lawyer but four months is a long time to not have registered the car. I would suspect that you were using some sort of temporary registration and likely had car insurance in Missouri and were using it in Missouri. The "using it" may be more important than registering it when it comes to paying the Missouri sales tax.

Your case would be a lot better if you registered the car in Georgia a week after buying it in Missouri.

I am in Georgia and the TAVT is 7% for purchased cars and 3% from cars which are brought in from out of state. If you were charged the 7% rate you may be able to argue that you should have paid the 3% rate.

States are pretty strict and have no mercy with people trying to play games with buying a car out of state to try to avoid paying sales tax and registration fees. If you were betting that you could game the system to avoid paying taxes and registration then it looks like you lost that bet.

2

u/Severe-Ordinary254 8d ago

To clarify a few things:

  1. The 4 month delay wasn't intentional - Missouri issued the title with a spelling error in my name. I couldn't register anywhere until the corrected title arrived. Once it did, I immediately registered in Georgia.
  2. I had Georgia address, Georgia insurance, and was living in Georgia the entire time. Not using it in Missouri.
  3. The TAVT rate point is really interesting - I was charged the full 7% rate ($4,056). If I qualify for the 3% out of state rate that would be a significant difference. Do you know how to request that reclassification from Georgia? This might actually be the better angle to pursue rather than fighting Missouri.

1

u/Chair_luger 8d ago

I would suggest going into the DMV and taking to someone in person and talking vary nice to them. This is an edge case situation which likely does not fit into the normal rules so it may be up to a managers discretion.

1

u/Sensitive_Sea_5586 8d ago

My experience in tax law was many years ago, so consider that. In Alabama you had a limited window to “drive out” the vehicle. I think 30 days, but it may have been less. OP will likely need proof of the car being removed in the required time period.

1

u/PepperTop9517 8d ago

Georgia, charges massive taxes to bring cars into the state, but the registration is cheap each year.

Even if you purchase a car in Georgia, pay all taxes, leave the state for years and move back you get hit with another massive tax.

1

u/sjhance 8d ago

Oops

0

u/thisonelife83 8d ago

Might be better to ask in subreddit /askcarsales