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

[Louie M.]

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

There MUST be a way of not paying tax to Calif. For example, I once purchased a 67 roadster at Bloomington, got temporary tags and paid some minor fee at a temporary state Dept. of Motor Vehicles office there, then drove home to Calif. and paid tax and registration there a couple of weeks later. When I got an 07 coupe, I got temporary tags from the McMulkin Chevy in New Hampshire (where I've never been) when I took Museum Delivery, attached the temp tags, then drove to Calif. and paid the tax and other fees. Here is the site for the Calif. Dept. of Motor Vehicles:

http://www.dmv.ca.gov/vr/vr.htm

There are some potentially useful links inside for you to investigate .... I started to, then realized I do not know your exact situation, so couldn't really help.

Good luck.

[Jack H.]

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

I can't say for certain how things would work for large ticket items like vehicles purchased in California, but I once did a 'dance' with a California vineyard that was insisting on charging sales tax on wine where the sale was interstate (phone order) and the goods were shipped out of state via UPS. The vineyard INSISTED they were required to charge California sales tax and I had my brother (an attorney then living in Palm Springs) look up the Statute(s) and provide an opinion letter.

The gist of the letter was there IS an exemption for interstate sales and it's pretty well 'buried' in the statue code. But, there's a Catch-22 were this transaction could be/would be subject to California sales tax. That's the rare instance where the initial sale was an inter-state transaction, but the buyer then repatriated the wine to California, opened and consumed it there. In that instance, the California sales tax code WOULD apply even though the intitial transaction was inter-state.

In the case of a vehicle or car hauler, my hunch is the sales tax exemption would apply IF the seller consigned the merchandise to a common carrier to transport the item out of California as part of the sale. But, Catch-22, trailers are BIG items and most transport agencies get about $1/mile for delivery. Where is your break-even point in the transaction????

[Greg L.]

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

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?

Chris, The law also applies to any internet purchases! The dealer is responsible for collecting the state tax and ARE audited on a regular basis. If for some reason a vehical is "missing" from the lot then the state wants their tax or proof that the physical transfer of property was made outside of the state which often defeats the purpose of the money saved by not paying the state tax.

This may turn into a blessing is disguise for me as I'm still looking for a tri-power 68-69 car and I wasn't aware of this California tax law until last week. I almost bought one for around 40k last summer from a dealer in CA thinking I was tax exempt but now I see that there would have been about $3300 additional in taxes to be paid....and then again once I got it home. What I need to do now is check and see if any other states have this hard line law and unless the car is a "deal", avoid their dealers as well.

This whole thing really blows me away...I really can't comprehend the thinking involved and whom ever dreamt up and passed this "no holes" law...well...

Anyways if anyone wants to check into it themselves here are the numbers that I called. I think they are both in Sacramento and they are ONLY for California state tax laws.

Board of Equalization 1-800-400-7115 (this number even works from Canada...go figure...)

DMV tax law 1-916-445-9524 (I got this number from the person at the above number). Funny thing is that once I said I was from Canada he know just what I was calling about.

[Greg L.]

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

Jack that is exactly how it works!

If the actual physical transfer of property takes place outside of the state then there is no state tax. Much of the time though there is no savings once you pay a carrier to transport the item across the boarder...oh you also have to have the transaction notorized once you cross the boarder.

The state has done a really bang-up job in detering out of state residents from buying from their in state dealers.

[Richard S.]

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

Greg,

You could try paying cash.....this worked with a dealer in Florida.....good luck.

[Cecil L.]

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

One of the few good things about Arizona besides no earthquakes, tornados, hurricanes, etc., is the fact that vehicle transactions between individuals (no dealer involved) is not taxed.