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  #1  
Old 08-02-2012, 03:57 PM
soopra soopra is offline
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For California Dealers: Does it matter where I register the car?

I live in California and am about to take delivery on a new F30. While calculating the registration fees on the CA DMV website, I noticed I could save about $300 if I used my parent's address to register the car as opposed to registering the car at my house. My parents and I both live in California but in different counties.

Are there any downsides to that? I've tried to Google the "legality" of doing this but I haven't been able to find any topics on this.
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  #2  
Old 08-02-2012, 05:06 PM
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Legally - I think its fraud, but considering that you are still registering in CA - probably not much of a problem. This is only MY opinion...
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  #3  
Old 08-02-2012, 06:40 PM
chrischeung chrischeung is offline
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You get less of a tax deduction.
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  #4  
Old 08-02-2012, 06:53 PM
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beewang beewang is offline
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Quote:
Originally Posted by miamiboyca View Post
Legally - I think its fraud, but considering that you are still registering in CA - probably not much of a problem. This is only MY opinion...
Why do you think its fraud??!! Do you know for FACT that state of CA requires ALL VEHICLE be registered at the buyer's home address??
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  #5  
Old 08-02-2012, 06:56 PM
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Sales tax is a combination of state and local taxes. By registering with an address the is not legally correct, you are cheating the local municipality of their funds... hence fraud...
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  #6  
Old 08-02-2012, 06:57 PM
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beewang beewang is offline
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Quote:
Originally Posted by soopra View Post
I live in California and am about to take delivery on a new F30. While calculating the registration fees ...
I think you meant to say "Sales Tax" as the Sales Tax rates varies by counties (i.e. LA County vs. Tulare County) I believe the registration fees (aka TAG) are based on value of the vehicle/vessel (e.g 1% of the sales Value) regardless of City/county municipalities in CA.
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  #7  
Old 08-02-2012, 07:00 PM
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Then why would registration be less in another place?
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  #8  
Old 08-02-2012, 07:02 PM
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beewang beewang is offline
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Quote:
Originally Posted by miamiboyca View Post
Sales tax is a combination of state and local taxes. By registering with an address the is not legally correct, you are cheating the local municipality of their funds... hence fraud...

So if I live in Dallas County but I travel to Tarrant County's Costco and buy a $5K computer... am I committing fraud because I am not being taxed based on Dallas County and that my "local municipality" isn't getting the tax dollar? Should I report myself to John Ames??!!
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  #9  
Old 08-02-2012, 07:06 PM
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beewang beewang is offline
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Quote:
Originally Posted by miamiboyca View Post
Then why would registration be less in another place?
You know... I've decided to move back to my parents house because I just made this capital purchase and I am just a lil' over my head w/ the Bills I racked up in Germany. I am gonna shack-up w/ my folks for a while..

.. But 10 days later... I realized that I am actually "OK" financially and I am gonna move back to L.A. County. This will be a non-taxable change of address and if you think I committed fraud... good luck on trying enforce this "rule".

But seriously.. Why would I do it?? Because I am LEGALLY able to arrange all my personal affairs to MINIMIZE my tax liability..


Judge Learned Hand, United States Courts of Appeals, 2nd Circuit

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Quote:
...Any one may so arrange his affairs that his taxes shall be as low as possible; he is not bound to choose that pattern which will best pay the Treasury; there is not even a patriotic duty to increase one's taxes.
Helvering v. Gregory, 69 F.2d 809, 810-11 (2d Cir. 1934).
Cheers,

Last edited by beewang; 08-02-2012 at 07:14 PM.
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  #10  
Old 08-02-2012, 07:09 PM
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Sales tax on cars are based on where you live, not where you buy. If it were based on where you buy... like Costco, every car in america would be purchased in Oregon. I did not make the rule... I keep a DL from another state just so I can purchase and register in said state. Legal... no, smart... maybe.
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  #11  
Old 08-02-2012, 07:35 PM
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I did not say you could not do it, or that it was easy to prove. A question was asked and I provided my opinion... that's it.

BTW - Why are you so proud of the ducks... they win anything yet... LOL
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  #12  
Old 08-02-2012, 09:09 PM
soopra soopra is offline
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Quote:
Originally Posted by beewang View Post
I think you meant to say "Sales Tax" as the Sales Tax rates varies by counties (i.e. LA County vs. Tulare County) I believe the registration fees (aka TAG) are based on value of the vehicle/vessel (e.g 1% of the sales Value) regardless of City/county municipalities in CA.
I actually meant both registration and sales tax. If you go to the CA DMV's website and use their tax/registration calculator, you can check which counties charge "extra" fees in addition to having higher sales tax rates. For example, if I was to register my car in San Francisco county I would have to pay 8.5% sales tax and some county specific fees like road construction and smog charges versus Santa Cruz County which only charges 8% sales tax and no extra road or smog fees.
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  #13  
Old 08-02-2012, 11:16 PM
bgasser bgasser is offline
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Insurance Issue???

You may want to think how having your registered car with your parents home address will affect your insurance. Claiming your car is based or garaged in another county, when it is not, could be problematic if you ever need to file a claim. For instance, if your tires are slashed or car is keyed at night, the insurance company might wonder what it was doing there.
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  #14  
Old 08-02-2012, 11:33 PM
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I know for a fact that it is fraud to register a car at an address where neither the car nor owner reside.

Odds of getting caught are zero. And you can go back and change the address later without a fee.

And it isn't 'sales tax'...there is no sales tax on cars in CA. Tey call it Use Tax. As long as we are being picky.
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  #15  
Old 08-03-2012, 07:42 AM
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Quote:
Originally Posted by ard View Post
I know for a fact that it is fraud to register a car at an address where neither the car nor owner reside.

Odds of getting caught are zero. And you can go back and change the address later without a fee.

And it isn't 'sales tax'...there is no sales tax on cars in CA. Tey call it Use Tax. As long as we are being picky.
Just to expand on this a little more, it's actually insurance fraud. No insurance company will allow this as it gives the owner the ability to possibly pay a lower premium at a different location. If caught, you will go to jail.
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  #16  
Old 08-03-2012, 08:21 AM
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beewang beewang is offline
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Quote:
Originally Posted by ard View Post
I know for a fact that it is fraud to register a car at an address where neither the car nor owner reside.

Odds of getting caught are zero. And you can go back and change the address later without a fee.

And it isn't 'sales tax'...there is no sales tax on cars in CA. Tey call it Use Tax. As long as we are being picky.
ard, are you trying to teach me something on Multi-Jurisdiction Sales/Use tax??!!
Will I get some CPE credit in this??!!

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  #17  
Old 08-03-2012, 09:04 AM
soopra soopra is offline
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Quote:
Originally Posted by 01Byte View Post
Just to expand on this a little more, it's actually insurance fraud. No insurance company will allow this as it gives the owner the ability to possibly pay a lower premium at a different location. If caught, you will go to jail.
In terms of insurance, I would tell the insurance company the address that I garage the car (ie my house). I understand the insurance fraud issue and will not be lying to my insurance company.

What I am really interested in is the registration issue. Is it the most ethical thing to do? Obviously not, but what I was trying to find out is if it was actually illegal or not, since my Googling of the issue turned up nothing on point.
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  #18  
Old 08-03-2012, 09:11 AM
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Quote:
Originally Posted by soopra View Post
In terms of insurance, I would tell the insurance company the address that I garage the car (ie my house). I understand the insurance fraud issue and will not be lying to my insurance company.

What I am really interested in is the registration issue. Is it the most ethical thing to do? Obviously not, but what I was trying to find out is if it was actually illegal or not, since my Googling of the issue turned up nothing on point.
I'm not sure you can actually insure a car at one address and register it at another. Have you spoken with your insurance company about this idea? You might find out that the tax argument is moot.
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  #19  
Old 08-03-2012, 09:27 AM
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miamiboyca miamiboyca is offline
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Quote:
Originally Posted by 01Byte View Post
I'm not sure you can actually insure a car at one address and register it at another. Have you spoken with your insurance company about this idea? You might find out that the tax argument is moot.
That you can do - insurance is based on where the car is housed.

I have moved several times, and updated my insurance without updating registration/tags


Quote:
Originally Posted by soopra View Post
I live in California and am about to take delivery on a new F30. While calculating the registration fees on the CA DMV website, I noticed I could save about $300 if I used my parent's address to register the car as opposed to registering the car at my house. My parents and I both live in California but in different counties.
To what do you owe the $300 savings?
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  #20  
Old 08-03-2012, 09:34 AM
soopra soopra is offline
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Quote:
Originally Posted by miamiboyca View Post
That you can do - insurance is based on where the car is housed.

I have moved several times, and updated my insurance without updating registration/tags




To what do you owe the $300 savings?
Agree with you on the insurance point. My current car is a hand-me-down from my parents when I was in college. The car is registered to my parent's house and my insurance is based on my house. The insurance company has no issue with discrepancies in addresses.

The $300 savings come from two things: different sales/use tax rates in each county and extra fees charged in one county for road construction and pollution.
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  #21  
Old 08-03-2012, 11:04 AM
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ard, are you trying to teach me something on Multi-Jurisdiction Sales/Use tax??!!
Will I get some CPE credit in this??!!

Great commercial.

just that you were being kinda blowhardy there, yet tossing our 'sales tax' comments...so...

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  #22  
Old 08-09-2012, 12:59 AM
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FYI ... California registration is based on vale/price of car the only variance is tax rate which is based on your zip code.
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  #23  
Old 08-09-2012, 09:07 AM
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Beewang I love your research and quote from the Judge, but your signature makes multiple postings in a thread a headache. Anyway, after reading the title I immediately thought it was due to local (read: county) sales tax, but that it may get fishy when you insure the vehicle. Looks like that's the consensus.

Cheers.
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  #24  
Old 08-09-2012, 11:24 AM
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Quote:
Originally Posted by miamiboyca View Post
I did not say you could not do it, or that it was easy to prove. A question was asked and I provided my opinion... that's it.

BTW - Why are you so proud of the ducks... they win anything yet... LOL
Yes.. we've won many... but a more recent example would be the (soon to be) "World's BEST Athlete" aka Olympic Gold Medalist in Decathlon

Ever seen this guy?? No??!! well turn on the Network Nightly news and you can hear about him..






http://en.wikipedia.org/wiki/Oregon_..._championships

19 NC and Back-to-Back-to-Back Pac-10/12 Champion in Football
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  #25  
Old 08-09-2012, 11:45 AM
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beewang beewang is offline
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Originally Posted by petriej View Post
Beewang I love your research and quote ... but that it may get fishy when you insure the vehicle. Looks like that's the consensus.

Cheers.

Thnx.. but let me throw another wrench in your insurance scenerio.

I am a guy from a small town Idaho. I've grown up and I now make big bucks in NYC. I maintain a residence in Boise, ID (because .. well.. I am from there and I love it there) and in Mid town Manhattan.

I don't have much need for a car in NYC. Its expensive an inpractical. But I love cars!! I have a 8 car garage in my home in Boise and that is where I have my Lambo, Porsche, M6, M5 and my Mclaren.

On one trip home.. I decided to take my M6 and drive back to NYC. But I ran into foul weather and got into a wreck in Harrisburg PA.

Question: Is my insurance company going to give me grief and / or think I committed insurance fraud??

What about me getting into a wreck in Upstate NY 3.5 weeks after I am back in NYC??
Am I in a lesser ground in either scenerio??!!



The answer is obvious and simple.. its 2 letters and one is a vowel

Last edited by beewang; 08-09-2012 at 04:49 PM.
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