out of state buyer - subject to CA sales tax?

[wyb]

I've just been talking to a California dealer about a used vehicle - they inform me that if I fly to California and take delivery there, then the purchase will be subject to the local 7.25% sales tax, rather than my local 5.0% rate - obviously 2.25% on $30k+ is not an inconsiderable amount at $675+ - so I'm a little quizzical about this, as other dealers in other states always reckoned that I'd pay my 5.0% taxes...

is California really going to be taking their own taxes even though I will register the car in Colorado?

[Robert A]

It may not be taxable, but the onus is on the dealer to prove that you registered it out of state. Hence, they may require a common carrier deliver possession outside state borders, just in case you don't take it back to Colorado right away.

Some dealers got stung really hard when ED customers didn't register their cars after US pickup or registered them at the local DMV claiming a then-90-day exemption from use tax.

I've just been talking to a California dealer about a used vehicle - they inform me that if I fly to California and take delivery there, then the purchase will be subject to the local 7.25% sales tax, rather than my local 5.0% rate - obviously 2.25% on $30k+ is not an inconsiderable amount at $675+ - so I'm a little quizzical about this, as other dealers in other states always reckoned that I'd pay my 5.0% taxes...

is California really going to be taking their own taxes even though I will register the car in Colorado?

[SkyDog]

The dealer's right, unfortunately. If you take delivery in California, Regulation 1620 (http://www.boe.ca.gov/pdf/reg1620.pdf) says you pay California sales tax. If you want to avoid paying California sales or use tax, you'd need to have the vehicle shipped out of state so you don't take delivery in California.

Most states play nice with one another when it comes to taxation. Not California.

[wyb]

thanks for the input - I also found Regulation 1620 and that's how I read it also. I will contact my nephew who is a dealer and get an estimate on shipping the car to me - but I think in this case I will be ruling out California unless I can get a killer deal on shipping the car... the governator and the citizens of CA will surely get on fine without my tax $$$.

[cjwheeling]

thanks for the input - I also found Regulation 1620 and that's how I read it also. I will contact my nephew who is a dealer and get an estimate on shipping the car to me - but I think in this case I will be ruling out California unless I can get a killer deal on shipping the car... the governator and the citizens of CA will surely get on fine without my tax $$$.
Just an FYI, many states will credit you the tax amount towards your own state's tax. So realistically, you will be paying 2.75% over what you would pay if you bought the car in your own state.

[wyb]

Just an FYI, many states will credit you the tax amount towards your own state's tax. So realistically, you will be paying 2.75% over what you would pay if you bought the car in your own state.

ok - I moved since I last purchased a car - I live in a different county now... here is the "official word" from the County Clerk and Recorder's office...

if I purchase out of state and pay sales tax, they will be able to credit me back the STATE TAX against the sales taxes paid - in my case, that is 2.9% - however, the CITY TAX will still have to be paid... 3.0%

So... if I purchase in person and pay the 7.25%, I will still end up paying 3.0% back home and have paid a total of 10.25% tax instead of 5.9%

$30,000 car would be an extra tax bill of $1305 - and flights, hotels, and gas - shipping of the car is about $800 - minus the flights, gas and hotels....

I am crumbling... I might do this and ship it...

here is the bad news... I am leaning very strongly towards this Mercedes CLK350 with 20k miles instead of waiting for the 335i's to come down.... must...be.... strong.....

[beewang]

And what state are you at??!!:dunno:

[Robert A]

One possibility is to have the dealer drive the car (with you in it) to the state line - maybe Reno, then you put him on a plane back home. I think that meets the criteria of reg 1620 since possession doesn't pass until you've left the state.

ok - I moved since I last purchased a car - I live in a different county now... here is the "official word" from the County Clerk and Recorder's office...

if I purchase out of state and pay sales tax, they will be able to credit me back the STATE TAX against the sales taxes paid - in my case, that is 2.9% - however, the CITY TAX will still have to be paid... 3.0%

So... if I purchase in person and pay the 7.25%, I will still end up paying 3.0% back home and have paid a total of 10.25% tax instead of 5.9%

$30,000 car would be an extra tax bill of $1305 - and flights, hotels, and gas - shipping of the car is about $800 - minus the flights, gas and hotels....

I am crumbling... I might do this and ship it...

here is the bad news... I am leaning very strongly towards this Mercedes CLK350 with 20k miles instead of waiting for the 335i's to come down.... must...be.... strong.....

[wyb]

And what state are you at??!!:dunno:

Colorado.

[wyb]

One possibility is to have the dealer drive the car (with you in it) to the state line - maybe Reno, then you put him on a plane back home. I think that meets the criteria of reg 1620 since possession doesn't pass until you've left the state.

that's a good idea - I'll ask - but I have my eye on two vehicles the other side of the country - $1,000 door-to-door to have the car delivered... probably better than driving it and saves 2000 miles on the car, two plane tickets, hotels and about 5 tanks of gas if I drive steady.

[beewang]

Colorado.


Well... In that case give these guys a call!!


http://www.bimmerfest.com/forums/showthread.php?t=180067&highlight=Pacific+Transport

I've used these guys before , they truck cars up and down the West Coast. DEFINITELY CHEAP!