"avoiding" California state sales tax(non resident).....

[Greg L.]

I just got back from California and while down there I ended up looking at some enclosed car haulers. I found a new 8x20 that I'd like but I was told that even though I was not a CA resident(or US resident for that matter...I'm from Canada eh) that I would still have to pay the state sales tax.

This sounds kind of odd to me so does anyone know how to get around this? I'm obviously not trying to scam the sales tax so I would think that there is some way legit to do this...anyone know how?

I have until Friday to tell the guy if I can take the trailer or not.

[Marc R.]

Re: "avoiding" California state sales tax(non resident).....

If he sells it from there, it's taxed from there.

[Dick W.]

Re: "avoiding" California state sales tax(non resident).....

Assuming California is like NC, if you take possession of the trailer in that state, you pay the tax. If they deliver it to you across the state line you pay no tax.

[Greg L.]

Re: "avoiding" California state sales tax(non resident).....

Is there any way to get it reimbursed then seeing as I'm not a CA resident?

It seems odd to me that the state of California would purposely discourage non residents from large dollar purchases such as cars, boats, planes, etc and in this case a car trailer from the state... I mean who wants to pay their state sales tax and then their own sales tax for where ever they might live?

I think BC has(or at least they had) a similar law(if it's sold there you pay the tax there) but if you could prove that you were not a resident then you didn't have to pay the provincial sales tax. If you couldn't prove it at the time of the sale you then had to pay the tax but you also got a form to fill out and mail back with proof that you didn't reside there and about two weeks later you got your sales tax refunded.

[Greg L.]

Re: "avoiding" California state sales tax(non resident).....

You know Dick the sales person said something to that effect but it didn't make sense to me at the time but if it's done that way in NC then there is obviously something to it. It still doesn't make ANY sense though because making the sale one inch past the border is just geography and the end result is still the same...

I can see that this is going to be fun.

[Terry M.]

Re: "avoiding" California state sales tax(non resident).....

It is not always as simple as the NC case Dick cites. I have seen some posts over on the Corvette Forum about Corvettes purchased from California dealers where the sales tax was collected and the car was never in California -- Museum Delivery for example. I didn't pay as much attention to the details of the posts as I might have if the situation applied to me -- so I don't know the end result.

Not to the question at hand, but I bought my new Corvette from a dealer in Indiana, picked it up in Kentucky, but I live in Illinois. I paid Indiana sales tax, but was credited for that amount by Illinois. The dealer told me if I had picked up the car in Indiana he would have collected the Illinois sales tax. Illinois and Indiana have a reciprocal tax agreement -- easier and more necessary because we are adjacent states.

You might try contacting the tax agencies in your province and/or California to see if there is some way the California tax can be applied to what you have to pay in Canada, but cross border and currency issues will complicate that idea. On the other hand, as you suggest, you can't be the first Canadian to want to make a purchase in California.

[Dick W.]

Re: "avoiding" California state sales tax(non resident).....

Most states require a business that has a "business presence" within the physical boundries of that state to collect the tax. If delivery occurs across the state line, no tax is collected at that time, but the purchaser is responsible for paying that appropiate where the vehicle is domiciled.

[Joe L.]

Re: "avoiding" California state sales tax(non resident).....

Is there any way to get it reimbursed then seeing as I'm not a CA resident?

It seems odd to me that the state of California would purposely discourage non residents from large dollar purchases such as cars, boats, planes, etc and in this case a car trailer from the state... I mean who wants to pay their state sales tax and then their own sales tax for where ever they might live?

I think BC has(or at least they had) a similar law(if it's sold there you pay the tax there) but if you could prove that you were not a resident then you didn't have to pay the provincial sales tax. If you couldn't prove it at the time of the sale you then had to pay the tax but you also got a form to fill out and mail back with proof that you didn't reside there and about two weeks later you got your sales tax refunded.

Greg-----


There is no way that I know of to get a refund of the sales tax. You can avoid it if they ship you the trailer to a location out of California. However, the cost of shipping it might well be more than the tax.

[Harmon C.]

Re: "avoiding" California state sales tax(non resident).....

The states are trying hard to collect this tax. I read that at B J auction in Arizona if you drive or haul the car yourself you pay Arizona tax. If it is hauled out of state by a car carrier then no tax was collected.

[Michael B.]

Re: "avoiding" California state sales tax(non resident).....

California's taxing agency is the Board of Equalization. They have more money than I do and I would love be to equal with them but that's not really what they do. I think they work for the poor and they want everyone to be that way...equally.

Here is an explaination of the code.

http://www.boe.ca.gov/pdf/reg1802.pdf

[Greg L.]

Re: "avoiding" California state sales tax(non resident).....

Well thanks for the help guys.

I contacted two separate people today at the Board of Equalization but as it turns out the state of California has decided to hinder rather than promote out of state and even out of country sales of cars, trucks, trailers...you name it from dealers. I even found out that private sales are subject to sales tax but as of yet the state doesn't enforce it....it's strickly on the honor system for now.

It looks like a California dealer just lost a sale due to their tax laws because I'll be getting my trailer from Oregon instead.

[Marc R.]

Re: "avoiding" California state sales tax(non resident).....

If he sells it from there, it's taxed from there.

Due to my lack of expertise, I generally post questions and rarely post answers. This area I have knowledge of, and experience with. California tax law is not 'geared' for exceptions.

[Chris L.]

Re: "avoiding" California state sales tax(non resident).....

This is an interesting thread. I live in Maryland and have been buying and selling cars for 35 years and have never paid sales tax in any other state. I am not a dealer either. I have never bought anything from California and after reading this thread, probably would have to do some serious negotiating if there was something in CA that I wanted. I have bought cars from BJ and did not pay tax, though they were shipped via carrier. In Maryland you only pay sales tax if you are a resident. You get the CO or title and pay the sales tax in the state you register it in. I assume this CA rule would not apply to vehicles purchased on EBAY as there would not be a way to enforce the collecting of the tax if the state did not have knowledge of the transaction or am I missing something?

[William G.]

Re: "avoiding" California state sales tax(non resident).....

I believe that if your home state has a reciprocal agreement with California that you will be given credit for sales tax lawfully paid to California when you register in your home state at time of registration if collected . However if there is no reciprocal agreement or no home state sales tax you night be out of luck.

[Dick W.]

Re: "avoiding" California state sales tax(non resident).....

This is an interesting thread. I live in Maryland and have been buying and selling cars for 35 years and have never paid sales tax in any other state. I am not a dealer either. I have never bought anything from California and after reading this thread, probably would have to do some serious negotiating if there was something in CA that I wanted. I have bought cars from BJ and did not pay tax, though they were shipped via carrier. In Maryland you only pay sales tax if you are a resident. You get the CO or title and pay the sales tax in the state you register it in. I assume this CA rule would not apply to vehicles purchased on EBAY as there would not be a way to enforce the collecting of the tax if the state did not have knowledge of the transaction or am I missing something?

If you register a vehicle in NC you will pay a "title" tax, based on the value of the car from the guide they use, not the sales price. They are getting wise to the collector car values though