s2k out-of-state purchase and sales tax
04-20-2002, 11:26 AM
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OK guys...some correct statements, some incorrect.
If you buy NEW or USED out of state and bring it straight back to CA and register it, CA will stick you for the use tax in your city/county when you register the car...can't get around that. If you take this road, the NEW car MUST be a 50 state car or CA will give you a one way trip license to get you to the border and that's that, not registerable in CA...at least not by you. If used, must have 7500 miles or so on the odometer. Stupid rules, but that's what they are. If you buy from a private party, the VIN must be verified by CHP or DMV, you can't do the registration by mail. They may require that even if from a registered dealer, depends on which side of the bed the DMV person woke up on that day.
If you have a residence in another state, for example...Orygun...you can buy there, run with OR plates until the car has 7500 miles on it (thats what they require) and then "Move" to CA and NOT pay use tax on the car.
This works pretty good, but neighboring states now have affadavits that you have to sign that state you are a resident of that state so they are trying to crack down a bit.
Typically if you are an out of state purchaser, you DO NOT pay the sales tax in the state you buy from, but rather pay the use tax in CA when you bring the car into the state. The old $300 "pollution penalty" is dead and is no longer charged on out of state cars. IF for some reason the other state charged you sales tax, when you register here, you will pay the difference (if any) to CA, not the entire 8% (or whatever it is where you live).
Argue if you must, but the last 10 cars I've owned have been purchased in one of the methods above and this is what I've experienced.
Good luck, it can be done, and you can outfox the "Man" if you are good and careful.
Paul
If you buy NEW or USED out of state and bring it straight back to CA and register it, CA will stick you for the use tax in your city/county when you register the car...can't get around that. If you take this road, the NEW car MUST be a 50 state car or CA will give you a one way trip license to get you to the border and that's that, not registerable in CA...at least not by you. If used, must have 7500 miles or so on the odometer. Stupid rules, but that's what they are. If you buy from a private party, the VIN must be verified by CHP or DMV, you can't do the registration by mail. They may require that even if from a registered dealer, depends on which side of the bed the DMV person woke up on that day.
If you have a residence in another state, for example...Orygun...you can buy there, run with OR plates until the car has 7500 miles on it (thats what they require) and then "Move" to CA and NOT pay use tax on the car.
This works pretty good, but neighboring states now have affadavits that you have to sign that state you are a resident of that state so they are trying to crack down a bit.
Typically if you are an out of state purchaser, you DO NOT pay the sales tax in the state you buy from, but rather pay the use tax in CA when you bring the car into the state. The old $300 "pollution penalty" is dead and is no longer charged on out of state cars. IF for some reason the other state charged you sales tax, when you register here, you will pay the difference (if any) to CA, not the entire 8% (or whatever it is where you live).
Argue if you must, but the last 10 cars I've owned have been purchased in one of the methods above and this is what I've experienced.
Good luck, it can be done, and you can outfox the "Man" if you are good and careful.
Paul
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