Avoiding CA Sales Tax

[pcar-yvr]

Thanks for the advice.

I'm also thinking the dealer might be taking a cut from his transport company. He's been pushing towards a carrier "he always deals with" and may this is just a way for him to get a little extra profit.

BUYER BEWARE !!

[Brucelee]

Originally Posted by pcar-yvr

Thanks for the advice.

I'm also thinking the dealer might be taking a cut from his transport company. He's been pushing towards a carrier "he always deals with" and may this is just a way for him to get a little extra profit.

BUYER BEWARE !!

Personally, I would write this guy off. If he will try to sleaze you on this (BTW-he can lose his license for this kind of crap) why would you trust him on the car?

Be careful out there.

[TorpedoZone]

Is this true for all states? (Sorry if this is a dumb question).

If you buy a car out of state, you aren't required to pay sales tax on it? Do you ever have to pay tax in your home state for an out of state car purchase?

Thanks,

Joe

Originally Posted by TorpedoZone

Is this true for all states? (Sorry if this is a dumb question).

If you buy a car out of state, you aren't required to pay sales tax on it? Do you ever have to pay tax in your home state for an out of state car purchase?

Thanks,

Joe

Pretty much. Yes, you have to pay sales tax for the state you reside in. For example, I purchased my car in Ohio, then broght it back to Illinois and paid the proper sales tax for my county.

[8 Ball]

You are right, you are supposed to pay sales tax in the state that you register your car in and not the car you purchase your car in. There are transports that can move your car to your state and you don't pay the sales tax because the car does not touch the ground. I have seen deals with transport companies that will take the car off the lot for you and give it to you a few miles away and you can drive it home from there. Why not make it easy and buy and register your car here in Oregon or in Montana. No sales tax!! and in Oregon your registration is $45 for two years. You may run into other problems if you have Oregon plates and a Texas license or something like that.

[Lil bastard]

Originally Posted by TorpedoZone

Is this true for all states? (Sorry if this is a dumb question).

If you buy a car out of state, you aren't required to pay sales tax on it? Do you ever have to pay tax in your home state for an out of state car purchase?

Thanks,

Joe

That's true of everything subject to Sales Tax. My wife and I do alot of travelling and we often shop for clothes, antiques, even some big ticket items when we're away.

We don't pay sales tax since we're not residents, but there's a catch. We cannot take the items with us, we must present out-of-state ID, and have the items shipped to our home out of state. Saves us a bundle.

My state allows up to $760/person/yr. on internet and out-of-state purchases tax free. You are supposed to report any purchases exceeding that total yearly amount on your Tax form.

With a car, it's hard to get around, because once in your home state, they valuate the car at the DMV and charge Sales Tax accordingly.

Funny though, many years ago I bought a Ferrari out of state. When I went to the DMV, the clerk valuated the car, but then winked at me and asked if it needed any work. I said well, there were some blemishes in the paint, but to get them out, a total repaint would be needed - that you don't touch-up a Ferrari. He responded with "well that's what? $10k-$15k for that type of paintjob?" I said "yea, probably, if not more" even though I had no intention of repainting it. So, he knocked off $15k in the value and charged me Sales Tax and Registration accordingly. Musta been a Car Nut. Hope we don't have any State or IRS agents as members here.

[Brucelee]

Originally Posted by TorpedoZone

Is this true for all states? (Sorry if this is a dumb question).

If you buy a car out of state, you aren't required to pay sales tax on it? Do you ever have to pay tax in your home state for an out of state car purchase?

Thanks,

Joe

Of course, assuming your state has a sales tax. Usually, you pay where you register the car.