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Buying a new car in California

Yahoo Message Number: 64417
I'm looking to buy a new Jeep and am in California where they pretty much insist on charging California sales tax even though I am a Texas resident and will be registering it in Texas and want to pay Texas sales tax (well, I don't really WANT to). The difference amounts to 2.5% (6.25 versus 8.75%). Texas DMV says they will accept the California bill of sale as taxes paid in full when I register it with them by mail but I will still be out the 2.5%.
I called a dealer in Arizona and again the situation was similar in that they have to charge their full sales tax which includes state and city totaling around 8.8% so there is no advantage in going there.
Does anyone have any legal suggestions as to a way around this situation when buying in California ?

Steve

2002 Intrigue 11382

Re: Buying a new car in California

Reply #1 –
Yahoo Message Number: 64418
Buy the car in Oregon, a no sales tax state, then pay the Texas sales tax.

Jim

07 Allure #31570

Re: Buying a new car in California

Reply #2 –
Yahoo Message Number: 64419
Ditto...

Don't buy in CA (or give them sales tax money.. if you can help it) Not a good thing to feed the Sacramento "pig" as many are saying.

Sorry for the political statement ...

Russ and Jean
05 Intrigue
11883

Past California Tax payers..

Re: Buying a new car in California

Reply #3 –
Yahoo Message Number: 64420
Don't know if the procedure is still the same but I bought a new Honda in Tucson in 2000 and sent the bill of origin to Florida with all the information that Florida needed. I paid Florida sales tax and I didn't pay Arizona any tax at all. I had gone to a Chevy dealer in Tucson and was about to buy a Malibu as my TOAD, the dealer insisted that I would have to pay the Arizona sales tax so I walked away and then went to the Honda dealer who knew how the deal was supposed to work for an out of state registration. So, you might have to shop around til you find a dealer who is savvy.

Ray

2000 Intrigue 11040

Re: Buying a new car in California

Reply #4 –
Yahoo Message Number: 64421
Steve,

If you are paying cash, try calling a dealership in TX to see if they can "dealer buy" the car from CA, you would "pick up" the car for the TX dealer. Have the TX dealer, invoice and register the car, then send you the plates.

Marta

07 Allure 31501

Re: Buying a new car in California

Reply #5 –
Yahoo Message Number: 64422
We did a similar deal to Ray's with a new truck from PA and registered it in Florida. Sales tax is (at least in FL) only paid when the car is registered. That was also in 2000, don't know if the laws have changed.
Ditto with used owner sold cars, sales tax in not collected by seller but upon registration with the state. Might want to call around to CA dealerships and find a knowledgable title clerk.

Marta

07 Allure 31501

Re: Buying a new car in California

Reply #6 –
Yahoo Message Number: 64423
Any dealer will do an out of state delivery, When i was a dealer we did it all the time. You need to take possession in the boardering state like Nev. Az and you get a 90 day trip permit, to get you home.

Re: Buying a new car in California

Reply #7 –
Yahoo Message Number: 64432
Did the same thing
Jw

06 inspire 51544

From: Country-Coach-Owners@yahoogroups.com [mailto:Country-Coach-Owners@yahoogroups.com] On Behalf Of MARSHALL Sent: Thursday, October 14, 2010 1:47 PM To: Country-Coach-Owners@yahoogroups.com Subject: [Country-Coach-Owners] Re: Buying a new car in California

Any dealer will do an out of state delivery, When i was a dealer we did it all the time. You need to take possession in the boardering state like Nev. Az and you get a 90 day trip permit, to get you home.

Quote from: Steve Bufty"

> I'm looking to buy a new Jeep and am in California where they pretty much > insist on charging California sales tax even though I am a Texas resident > and will be registering it in Texas and want to pay Texas sales tax (well,
I

Quote
don't really WANT to). The difference amounts to 2.5% (6.25 versus 8.75%).
Texas DMV says they will accept the California bill of sale as taxes paid
in

Quote
full when I register it with them by mail but I will still be out the

2.5%.

Quote
>

> I called a dealer in Arizona and again the situation was similar in that > they have to charge their full sales tax which includes state and city > totaling around 8.8% so there is no advantage in going there.

> Does anyone have any legal suggestions as to a way around this situation > when buying in California?

Steve

2002 Intrigue 11382

Re: Buying a new car in California

Reply #8 –
Yahoo Message Number: 64457
Steve

I bought a truck in California a few years back and they drove it to Reno Nevada where I took delivery.

Dan 2006 Allure 31348

Re: Buying a new car in California

Reply #9 –
Yahoo Message Number: 64468
Steve,

Our first motorhome was a new 2003 Lazy Daze Class C. That company only delivers factory direct from their Montclair, CA facility. I paid for the coach before making the trip to get the unit, received ownership documents from Lazy Daze, went to the Connecticut DMV and titled and licensed the unit, paying CT sales tax of 6%. I took my papers and license plates with me to pick up the coach in Montclair. I put the tags on the coach, took delivery and away we went on our maiden voyage back to Connecticut. Not sure this helps in your situation, but it worked for us and saved several hundred dollars in tax.

Nate Richards
04 Allure 31043

Re: Buying a new car in California

Reply #10 –
Yahoo Message Number: 64511
Steve,

I used to be a California Peterbilt Dealer, and dealt with this issue daily. The key paying California Sales tax is where you take possession; if you pick it up (take delivery) at the dealership tax is due. If you take delivery out of state Sales tax it is not due. You cannot drive or be in possession of the vehicle before it leaves the state. Delivery has to be out of state. The California State Franchise Tax Board office has forms that need to be filled out and notarized at the place of delivery. BE very careful that you have and keep these forms, It is common for the state to so Sales Tax audits of dealerships and a letter requesting payment could show up in your mail up to 5 years after delivery. There is no credit for tax paid in another state. Oh if you get the dealer to do a out of state delivery keep going.. don't turn around and go back into the state until after you have been to your home .if you do Tax is due. I can tell you horror stories of some of the ways PPL have used to get out of paying the tax that have not worked....

Cheers
Ted

Life should NOT be a journey to the grave with the intention of arriving safely in an attractive and well preserved body, but rather to skid in sideways, boat controls in one hand, toddy in the other, body thoroughly used up, totally worn out and screaming "WHOHOO, what a ride!" Onboard M/V Elegante

longbranch cutout 3.jpg

Re: Buying a new car in California

Reply #11 –
Yahoo Message Number: 64534
Thanks to everyone who has responded to my query about the sales tax issue when buying a new car in California and registering it in Texas . I've compiled a file of replies and will take everyone's input under advisement.

Steve

2002 Intrigue #11382