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Need info on Calif Sales Tax issues

Yahoo Message Number: 30267
Hi All,

I hope there is someone here who has actually done this and can clarify one point.

If one buys a coach out of state and will not be using the coach in California for a year, then one is exempt from California sales tax.
I understand that. What is one supposed to do for license while you are out for a year ??

Will California allow you to license the coach while waiting for you to complete the year ?? I have a situation that I could really use the coach out of state for a year. And I have found a PP out of state with a bus I'm interested in buying.

Just trying to work through the details before I buy. Any help from someone that has actually done the year deal is appreciated.

The "old" 90 day rule is set, once again, to sunset at the end of June unless extended again. I doubt timing will be that nice to me.
I also suspect that they will again extend the 1 year rule.

Michael

01' Intrigue #11224

Re: Need info on Calif Sales Tax issues

Reply #1 –
Yahoo Message Number: 30269
I lived in the SF Bay area and purchased a coach in San Diego, took delivery in AZ. with the help of the dealer. They will provide a trip permit to take the coach to wherever you want to register the coach.
We chose OR. as our domicle and were able to register the coach without sales take for a two year period for $418.00.

We will be full timing so claiming a domicle was necessary and with that we are Oregon resident.

We are still in the SF Bay Area trying to sell our home and travel about half the year. It is really, really expensive to register and pay sales tax in CA.

I really don't want to give the state of CA. any more of my money than necessary.

Jock Vargo

2005 Inspire 330
#51428

Quote from: matsprt1984
Hi All,

I hope there is someone here who has actually done this and can > clarify one point.
> If one buys a coach out of state and will not be using the coach in > California for a year, then one is exempt from California sales

tax.

Quote
I understand that. What is one supposed to do for license while you > are out for a year ??

Will California allow you to license the coach while waiting for

you

Re: Need info on Calif Sales Tax issues

Reply #2 –
Yahoo Message Number: 30272
Mike, the way I understand the issue is that you pay the tax and registration and get your plates. Then with receipts in hand one year later you file for a refund with CA for a sales tax refund. OR maybe you could do a MT LLC?

Re: Need info on Calif Sales Tax issues

Reply #3 –
Yahoo Message Number: 30274
Good morning Group,

Just a "Heads up" concerning rules in Oregon. To legally register a vehicle in Oregon you now have to produce hard evidence that you are a 'resident' of the state. No more convenient po box numbers or a relatives address. The DMV requires items such as a property tax bill if you own, rental agreement, utility bills and bank statements.
You will also need to provide the vehicle for inspection so that they can personally verify the Vin # against the application. In some cases with the correct form you can have any OR. law enforcement officer verify this for you without taking the vehicle to the DMV office.
Same applies to driving licenses. These applications really tightened up after 9/11.
Call OR. DMV and ask them to send you forms and DL guide book so you are prepared.
The really good news is that for bon fide residents, DMV fees for registration and driving licenses are reasonable and can last up to 4 years for new vehicles and twelve years for driving licenses if your record is clean.
If applying to OR. DMV, the best bet is to chose an office in a small town. The staff there are a lot less stressed. There will be shorter lines and believe it or not, it can be a pleasant experience.
For me one of the joys of living in Oregon, is knowing I will never again have to stand in line for an hour at a SF Bay Area DMV!

David. Allure 31383

(Past resident of Santa Clara County)

Re: Need info on Calif Sales Tax issues

Reply #5 –
Yahoo Message Number: 30277
Hi, we also thought about registering our 07 coach in Oregon. We own property in Florence, pay property tax, have electric bills etc....but...Oregon requires that you prove to them that you have resided in the state for 6 consecutive months before they will allow you to become a resident. California wants residents and it is relatively easy to become a Californian; Oregon is much pickier and they make it much more difficult. Sometimes just the savings on the registration fees does not offset other costs that are incurred. Staying out of Ca for 1 year because of the sales tax is doable for some people and not for others. So for whatever it is worth, do lots of homework and check out every aspect of your change and its impact on you and yours before making a move.
There is a very good document worth reading that can be downloaded from the Escapees website. It is titled (as I remember) How to Become a Texan. But it is generic in that it gives all steps of changing your domiclie from one state to another.

Hollicks 07 Affinity #6767

Re: Need info on Calif Sales Tax issues

Reply #6 –
Yahoo Message Number: 30278
Mike:

I did a lot of research on this prior to buying my last coach. I was taking delivery of it after the 90 day requirement was due to expire and become one year. But I discovered, upon closely reading the language of the law describing the "sunset" of the 90 days, that it required you to purchase OR HAVE A LEGALLY BINDING CONTRACT TO PURCHASE prior to the end of the 90 day terms. I signed a contract to purchase, and I was "Grandfathered" into the previous 90 day period, despite the fact that I took possesion (and paid for the coach) after the 90 day period was over. If I were you, I would review to see if this provision is still the same.

Good Luck!

Al Colby

Quote from: matsprt1984
Hi All,

I hope there is someone here who has actually done this and can > clarify one point.
> If one buys a coach out of state and will not be using the coach in > California for a year, then one is exempt from California sales

tax.

Quote
I understand that. What is one supposed to do for license while you > are out for a year ??

Will California allow you to license the coach while waiting for

you

Re: [SPAM] [Country-Coach-Owners] Re: Need info on Calif Sales Tax

Reply #7 –
Yahoo Message Number: 30280
We became Oregon residents in 2003 after we retired and started full timing. As previously mentioned, it is really difficult to establish a residence in Oregon but for a surprising reason. What we were told is that Oregon really doesn't care and would freely welcome new residents since it would be more state income tax revenue. But, California and Washington really puts the pressure on Oregon to make sure people are not just establishing shame residences to avoid sales tax on big ticket items like motorhomes. So Oregon, has to make it pretty tough.
Aside from no sales tax, for us Oregon has three real benefits. As mentioned, it has pretty cheap registration fees with no inspection in the small communities. Also, because we are retired Federal employees, there is a great break on our annuity income on State Income tax returns. Lastly once you have been a state resident for a year (and of course paid your appropriate state income tax) Oregon lets you become a "Continuous Traveler" without a requirement of a physical domicile address. You just have to have a mailing address. This is nice because we were always uncomfortable with our original domicile address on our driver's license - even though we no longer resided there. We could not give a new domicile residence (as required by Oregon law) since we were full timers. We always wondered what would happen if we had an accident and our Driver's License had a real old physical address. Now with an address of "Continuous Traveler" on our driver's license and the fact that we do our banking and insurance, etc in Oregon, we are legit.

Byron Knight

2004 40' Foretravel

Re: Need info on Calif Sales Tax issues

Reply #8 –
Yahoo Message Number: 30295
For what it's worth, a "friend" of ours bought a new motorhome in San Diego back in the "90 day" timeframe of 2004, took possession in Arizona, but were issued CA plates and registration.
The out-of-state delivery was originally intended to keep the CA high-end vehicle sales industry alive rather than have everybody buy elsewhere. But CA was smart enough to realize that $1000 and up per year from registration fees is better than nothing.
Of course, things may have changed between now and then to discourage use of this advantage. It is a very touchy subject.

Bill & Debbie in San Diego

Re: Need info on Calif Sales Tax issues

Reply #9 –
Yahoo Message Number: 30296
Texas may be farther than you wish to go for state residency but it may be best place for you.
Escapees Club offers legal TX residency, plus mail forwarding services & many other benefits.
SKP Club provides a booklet to read & consider before & while getting TX residency. How to become a Texan is published by SKP club. See http://www.escapees.com/memberservices.asp. To get a copy of How to become a Texan, on that page you can search for "texan". On search results page select /edocs/texan.pdf. How to become a Texan has a 2006 date, so it may be correct for today's legal considerations.

I suggest you investigate:
Handicap sales tax exemption

Tax, title, scale & first registration total near $300 Lack of property tax

Registration renewals near $200
Low Livingston TX insurance cost
SKP mail forwarding services
SKP drug store service
Lack of income tax

Million $ CCs will cost more to register due to weight of coach.
SKP mail service trashes junk mail, does not forward junk, charges actual mailing cost. The membership fess we pay are well worth the differences of SKP mail forwarding versus Mother in law mail forwarding.

Eric Lee Elliott
5 Inspire 51321
 

Re: Need info on Calif Sales Tax issues

Reply #10 –
Yahoo Message Number: 30308
Quote from: F102508@\.\.\.
The one year rule in CA is the same as the 90 day rule except for
the length of time. I purchased several years ago using the 90 day rule, took del. out of state and the dealer did the paperwork. I received my CA lic. for the coach in about 6 weeks, put them on the coach but did not bring it back into CA for about 120 days. It cannot be stored but must be used during the time it is out of state. They will want receipts for fuel, rv rent, etc. to prove that you actually used it and didn't just store it.

John

Allure 31308

Quote
Good morning Group,

Just a "Heads up" concerning rules in Oregon. To legally
register a vehicle in Oregon you now have to produce hard evidence that you are a 'resident' of the state. No more convenient po box numbers or a relatives address. The DMV requires items such as a property tax bill if you own, rental agreement, utility bills and bank statements.

Quote
>

You will also need to provide the vehicle for inspection so
that they can personally verify the Vin # against the application.
In some cases with the correct form you can have any OR. law enforcement officer verify this for you without taking the vehicle to the DMV office.

Quote
>

Same applies to driving licenses. These applications really
tightened up after 9/11.

Quote
>

Call OR. DMV and ask them to send you forms and DL guide book
so you are prepared.

Quote
>

The really good news is that for bon fide residents, DMV fees
for registration and driving licenses are reasonable and can last up to 4 years for new vehicles and twelve years for driving licenses if your record is clean.

Quote
>

If applying to OR. DMV, the best bet is to chose an office in
a small town. The staff there are a lot less stressed. There will be shorter lines and believe it or not, it can be a pleasant experience.

Quote
>

For me one of the joys of living in Oregon, is knowing I will
never again have to stand in line for an hour at a SF Bay Area DMV!

Quote
>

David. Allure 31383

(Past resident of Santa Clara County) >