This is how it has worked for me in the past: If you buy out of state from a dealer they will make you pay their local sales tax. You bring your receipts, MSO, etc to the NYS DMV and they give you credit for whatever tax you paid already. The 2 states work it out on their ends to get whatever money you paid. Not sure how it goes if you buy something in a locality with a higher tax rate than your locality though. Lucky for us NYers that we have a high sales/use tax rate. If you buy from a private party, no tax is collected until you show up at the NY DMV.