Out of state buyer of CALIFORNIA CARs
08-14-2007, 11:04 AM
#1
Out of state buyer of CALIFORNIA CARs
PLEASE, can sombody answer this question for us.
We are looking to purchase a USED C6 Vette that is For Sale at a So. Cal. Chevy Dealer. (The car's original owner Purchased and Licenced this car NEW through this current selling dealership).
The dealer tells us, "that If we purchase the car, and we want to drive the car home to MT, We MUST Pay the California State Sales Tax"... "If we have the car hauled home, we don't have to pay the sales tax".
Why would we be required to pay Cal. State sales tax, if we are not california state residents, nor are we licencing or registering the vehicle there?
We have purchased NEW & Used vehicles in the past from Dealers in WA, OR, ID, & IL, and we have never had to pay that states sales tax or licensing fees. Generally you get a 3-10 day transit permit for the vehicle and away you go!!
Give us some insight. Thanks! Larry
We are looking to purchase a USED C6 Vette that is For Sale at a So. Cal. Chevy Dealer. (The car's original owner Purchased and Licenced this car NEW through this current selling dealership).
The dealer tells us, "that If we purchase the car, and we want to drive the car home to MT, We MUST Pay the California State Sales Tax"... "If we have the car hauled home, we don't have to pay the sales tax".
Why would we be required to pay Cal. State sales tax, if we are not california state residents, nor are we licencing or registering the vehicle there?
We have purchased NEW & Used vehicles in the past from Dealers in WA, OR, ID, & IL, and we have never had to pay that states sales tax or licensing fees. Generally you get a 3-10 day transit permit for the vehicle and away you go!!
Give us some insight. Thanks! Larry
08-14-2007, 11:19 AM
#2
Law Dawg Moderator
I've never heard of that excuse either. Maybe something related to issuing a temp-tag and taxes.
08-14-2007, 12:25 PM
#3
Instructor
Cal. State sales tax
I have run into the same thing. However, I'm pretty sure that if you pay the CA Tax, you will not be taxed again in MT. To be sure you can call your local DMV.
08-14-2007, 12:25 PM
#4
Safety Car
Call the California DMV and ask them, or look on their web site. If you are not registering the car in CA, I don't see how you could be charged state sales tax? The dealer may be misinformed, or just trying to pocket the tax amount for himself?
Paul
Paul
08-14-2007, 12:36 PM
#5
PLEASE, can sombody answer this question for us.
We are looking to purchase a USED C6 Vette that is For Sale at a So. Cal. Chevy Dealer. (The car's original owner Purchased and Licenced this car NEW through this current selling dealership).
The dealer tells us, "that If we purchase the car, and we want to drive the car home to MT, We MUST Pay the California State Sales Tax"... "If we have the car hauled home, we don't have to pay the sales tax".
Why would we be required to pay Cal. State sales tax, if we are not california state residents, nor are we licencing or registering the vehicle there?
We have purchased NEW & Used vehicles in the past from Dealers in WA, OR, ID, & IL, and we have never had to pay that states sales tax or licensing fees. Generally you get a 3-10 day transit permit for the vehicle and away you go!!
Give us some insight. Thanks! Larry
We are looking to purchase a USED C6 Vette that is For Sale at a So. Cal. Chevy Dealer. (The car's original owner Purchased and Licenced this car NEW through this current selling dealership).
The dealer tells us, "that If we purchase the car, and we want to drive the car home to MT, We MUST Pay the California State Sales Tax"... "If we have the car hauled home, we don't have to pay the sales tax".
Why would we be required to pay Cal. State sales tax, if we are not california state residents, nor are we licencing or registering the vehicle there?
We have purchased NEW & Used vehicles in the past from Dealers in WA, OR, ID, & IL, and we have never had to pay that states sales tax or licensing fees. Generally you get a 3-10 day transit permit for the vehicle and away you go!!
Give us some insight. Thanks! Larry
08-14-2007, 12:37 PM
#6
Pro
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California appears to be in their own little world on how they charge sales tax on a car purchase. I live in Texas and have bought Vettes from Dave in NJ, Ron in WI and Carl and Tim in CA. Even flew to WI and drove that car back in the dead of winter and nary a word about WI taxes.
But, apparently CA charges sales tax based upon where you take possession. Sort of like if you were on vacation in CA and stopped in a store to buy a Snickers Bar, you'd pay sales tax on your candy. CA appears to tax you on anything bought (possession taken) in their state including cars.
When I bought this last car from Carl, I had it shipped to me. CA's sales tax is 8.25% and the tax here in TX is only 6.25%. So eventhough TX would give me a credit against the TX tax for the CA tax that I would have paid, I would still have been out the 2% difference. And that 2% difference (~$1,000) was almost enough to pay for the enclosed carrier that brought the car to me.
But, apparently CA charges sales tax based upon where you take possession. Sort of like if you were on vacation in CA and stopped in a store to buy a Snickers Bar, you'd pay sales tax on your candy. CA appears to tax you on anything bought (possession taken) in their state including cars.
When I bought this last car from Carl, I had it shipped to me. CA's sales tax is 8.25% and the tax here in TX is only 6.25%. So eventhough TX would give me a credit against the TX tax for the CA tax that I would have paid, I would still have been out the 2% difference. And that 2% difference (~$1,000) was almost enough to pay for the enclosed carrier that brought the car to me.
08-14-2007, 01:46 PM
#7
Burning Brakes
But, apparently CA charges sales tax based upon where you take possession. Sort of like if you were on vacation in CA and stopped in a store to buy a Snickers Bar, you'd pay sales tax on your candy. CA appears to tax you on anything bought (possession taken) in their state including cars.
08-14-2007, 02:04 PM
#8
Safety Car
What if the sale was from a private party and not a dealer, would an out fo state buyer still have to pay CA sales tax?
If your home state won't credit you the full amount of CA tax paid, might be worth your while to have a used car dealer or broker from your home state, process the sale and resell the car to you. They should only charge a few hundred for the service, could be worthwhile if the tax amount is high enough.
Paul
If your home state won't credit you the full amount of CA tax paid, might be worth your while to have a used car dealer or broker from your home state, process the sale and resell the car to you. They should only charge a few hundred for the service, could be worthwhile if the tax amount is high enough.
Paul
08-14-2007, 02:52 PM
#9
Banned Scam/Spammer
Private party is different. Then you pay your state the sales tax when you register the car in your state.
I've gone through this several times. I bought a truck in TX, and paid more is sales tax than CA tax would have been. w/e.
oh, and get this.. when you buy a new car in say, Northern CA, and you live in So. CA, you pay the sales tax for the county you LIVE in, not the county you're buying it in. I've did this little number several times too.
But when you buy tires, you pay the tax WHERE you are, not where you live.
Oh.. one more little tax bitch... When you buy tires, ever notice they charge you Fed tax, and then tack on State Tax to the total? They're charging you tax on a tax. WTF????
anyone need to borrow my soap box?
I've gone through this several times. I bought a truck in TX, and paid more is sales tax than CA tax would have been. w/e.
oh, and get this.. when you buy a new car in say, Northern CA, and you live in So. CA, you pay the sales tax for the county you LIVE in, not the county you're buying it in. I've did this little number several times too.
But when you buy tires, you pay the tax WHERE you are, not where you live.
Oh.. one more little tax bitch... When you buy tires, ever notice they charge you Fed tax, and then tack on State Tax to the total? They're charging you tax on a tax. WTF????
anyone need to borrow my soap box?
Last edited by Todd157k; 08-14-2007 at 02:57 PM.
08-14-2007, 03:20 PM
#10
Burning Brakes
Private party is different. Then you pay your state the sales tax when you register the car in your state.
I've gone through this several times. I bought a truck in TX, and paid more is sales tax than CA tax would have been. w/e.
oh, and get this.. when you buy a new car in say, Northern CA, and you live in So. CA, you pay the sales tax for the county you LIVE in, not the county you're buying it in. I've did this little number several times too.
But when you buy tires, you pay the tax WHERE you are, not where you live.
Oh.. one more little tax bitch... When you buy tires, ever notice they charge you Fed tax, and then tack on State Tax to the total? They're charging you tax on a tax. WTF????
anyone need to borrow my soap box?
I've gone through this several times. I bought a truck in TX, and paid more is sales tax than CA tax would have been. w/e.
oh, and get this.. when you buy a new car in say, Northern CA, and you live in So. CA, you pay the sales tax for the county you LIVE in, not the county you're buying it in. I've did this little number several times too.
But when you buy tires, you pay the tax WHERE you are, not where you live.
Oh.. one more little tax bitch... When you buy tires, ever notice they charge you Fed tax, and then tack on State Tax to the total? They're charging you tax on a tax. WTF????
anyone need to borrow my soap box?
08-14-2007, 03:21 PM
#11
Team Owner
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St. Jude Donor '15
"In honor of jpee"
Private party is different. Then you pay your state the sales tax when you register the car in your state.
I've gone through this several times. I bought a truck in TX, and paid more is sales tax than CA tax would have been. w/e.
oh, and get this.. when you buy a new car in say, Northern CA, and you live in So. CA, you pay the sales tax for the county you LIVE in, not the county you're buying it in. I've did this little number several times too.
But when you buy tires, you pay the tax WHERE you are, not where you live.
Oh.. one more little tax bitch... When you buy tires, ever notice they charge you Fed tax, and then tack on State Tax to the total? They're charging you tax on a tax. WTF????
anyone need to borrow my soap box?
I've gone through this several times. I bought a truck in TX, and paid more is sales tax than CA tax would have been. w/e.
oh, and get this.. when you buy a new car in say, Northern CA, and you live in So. CA, you pay the sales tax for the county you LIVE in, not the county you're buying it in. I've did this little number several times too.
But when you buy tires, you pay the tax WHERE you are, not where you live.
Oh.. one more little tax bitch... When you buy tires, ever notice they charge you Fed tax, and then tack on State Tax to the total? They're charging you tax on a tax. WTF????
anyone need to borrow my soap box?
08-14-2007, 03:34 PM
#12
Racer
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From what i understand that is california . ....if may be that dealers mis understanding of the exact tax laws but you can also buy the car have the dealer send you paperwork and show up with you plates
But if the car is driven off the lot. I believe all taxes must have been collected.
But if the car is driven off the lot. I believe all taxes must have been collected.
08-14-2007, 03:40 PM
#13
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It is CA law that if you drive the car off the dealer property, they must charge you sales tax. You should get credit when you register the car in your home state, but it's likely you'll be paying a higher rate in CA (typically 8% or more), and good luck getting a refund for the difference.
08-14-2007, 05:07 PM
#14
Banned Scam/Spammer
The reason it is different is because YOU sign a "Power of Attorney" to register the car when you are AT THE DEALER. The dealer then sends all the paperwork to DMV for you. Therefore the car is "registered" in the state you are in, even though it is not titled there. Hence, the taxes.
I did get by this little issue once, and did not pay THAT state tax. Most dealers won't or can't (dunno which) allow you to take the car without that paperwork.
I did get by this little issue once, and did not pay THAT state tax. Most dealers won't or can't (dunno which) allow you to take the car without that paperwork.
08-14-2007, 05:25 PM
#16
Banned Scam/Spammer
08-15-2007, 04:06 AM
#19
Former Vendor
California is very weird when it comes to sales tax. If you drive the car in the state, you have to pay sales tax. I know this because I work at Boardwalk Chevrolet. To avoid paying the sales tax, I usually ship the car to Reno for about $250 and have my customers take delivery there. When we ship a car, we get a bill of lading from the shipper and that proves to California that the car was delivered out of state and you don't have to pay sales tax.
08-15-2007, 10:43 AM
#20
California is very weird when it comes to sales tax. If you drive the car in the state, you have to pay sales tax. I know this because I work at Boardwalk Chevrolet. To avoid paying the sales tax, I usually ship the car to Reno for about $250 and have my customers take delivery there. When we ship a car, we get a bill of lading from the shipper and that proves to California that the car was delivered out of state and you don't have to pay sales tax.
I'll check with the selling dealer, to see if they are capable or willing to do this. Anybody out there have a recommendation or a contact of a good, clean, short run type transport?
Thanks for the input. Larry
