20% Tax on out-of-state car purchase: WTH, California?!

[island911]

So I'm trying to buy a used toy (Porsche) in California (for use in Washington state) and now understand that California insists that 10.25% tax be collected for the Governator Even though the car will not be licensed here (CA) ...and then I would pay another 9.5% WA tax at licensing.

So far the only(known)way around this is to ship the car out of state ...that costs$1400 ... else the CA tax would be $2500

any suggestions ?

[Hugh R]

Have it shipped to Washington and buy it there.

[m21sniper]

Don't buy a california car.

[Zeke]

Why ship it if that's the case? Drive in to WA. Do the paper work in WA. You can leave the money in an escrow account.

And, this doesn't make sense to me because if my address was in OC, I'd be paying 8.75% at the dealer. Since my car would be registered in LA County, I'd have to pay an OC dealer 10.25%. So, if my legal address is out of state, how do they decide what the rate is? It varies from county to county.

[stevepaa]

Sounds like you are buying from a dealer and he must collect use tax. Isn't that the same in every state?

An individual does not.

[Zeke]

Buyers pay "use" tax based on value. Licensed sellers collect sales tax from the customer based on the sale price. It's one or the other. Somehow I don't think this sale to an out of state buyer is taxable, but if from a dealer, could be a hassle. I can't find any info on the CA DMV site (which doesn't surprise me).

[fingpilot]

I know that when I purchased a new car in AZ, they collected their rate 4.5%, then I got a credit for that rate when I reg'd it in Nevada (also 4.5%). 3 years later moved the reg and title to CA. CA couldn't tax me again for their rate because 2 years had passed, and the car had more than 7500 miles on it.

The reverse is still true. When I as a private individual sell an existing CA title out of state, the new state collects their tax on the sales price when the vehicle is titled in the new state. If the vehicle is sold thru a dealer, all bets are off.

[javadog]

I have purchased two cars from dealers in California and paid CA tax on neither one. One was picked up in person and the other one shipped. Both were from dealers that should knwo what they are doing, so it sounds like you might be getting screwed.

JR

[onewhippedpuppy]

When buying out of state, typically you pay the sales tax when you register in your state. I've never been asked to pay out of state sales tax when purchasing a vehicle from either an individual or dealer. It's either typical CA socialist BS or somebody is trying to screw you.

[speeder]

There is a lot of incorrect information on this thread. At the very least, you are never double-taxed on a vehicle purchase. If you buy from a dealer and drive it away, you will pay the sales tax in that state. You will be credited for the sales tax already paid when you register it in your state. (You will not get a refund if your state charges a lesser rate).

Many states no longer give 1-trip permits for out-of-state buyers, besides CA. It's a drag but the only solution is to buy from a private party and drive home with title in hand. At least CA. leaves the plates on, in some states the seller keeps the plates for his next car, making it hard to drive it home.

[pwd72s]

Originally Posted by Hugh R

Have it shipped to Washington and buy it there.

Hell, have it shipped to Oregon....no sales tax in Oregon.

[onewhippedpuppy]

Originally Posted by speeder

There is a lot of incorrect information on this thread. At the very least, you are never double-taxed on a vehicle purchase. If you buy from a dealer and drive it away, you will pay the sales tax in that state. You will be credited for the sales tax already paid when you register it in your state. (You will not get a refund if your state charges a lesser rate).

Many states no longer give 1-trip permits for out-of-state buyers, besides CA. It's a drag but the only solution is to buy from a private party and drive home with title in hand. At least CA. leaves the plates on, in some states the seller keeps the plates for his next car, making it hard to drive it home.

Not always true. I've purchased from dealers in CO and TX and not had to pay sales tax, instead paying when I registered in KS. It may vary from dealer to dealer however, these were both small independents.

[island911]

can I come live w/ you, Paul?

Denis, are you sure about that?

[myamoto1]

Originally Posted by pwd72s

Hell, have it shipped to Oregon....no sales tax in Oregon.

You still need to pay WA state sales tax. I'm not sure if what Speeder is saying is 100% correct. WA will want to collect on the sales tax if it's the first time you're registering the car in your name. Even purchasing a car, from a dealer, in OR (no sales tax) I've paid the WA sales tax through the dealer. The dealer then has to send the tax collected to WA. In the case of purchasing from a CA dealer, I'm not sure if WA would then try to collect the sales tax from the dealer or from you.

I purchases my 911 from a private party in CA. When I went to register it in WA, they didn't seem to care where the car came from, they just wanted to collect the sales tax on it. I would still call the WA DOL to confirm how the tax would be worked out.

[myamoto1]

some more info from WA DOL:

http://www.co.clark.wa.us/auditor/auto/feesandtaxes.html

Sales / Use Tax
Sales tax or use tax is paid by the purchaser of a vehicle. Sales tax is generally paid at the time of purchase when a vehicle is purchased from a Washington dealership. Use tax is generally paid at the time of registration when a vehicle is purchased from a private party or an out of state dealership. The tax rate depends on the circumstances of the purchase. Tax on a purchase from a Washington dealer is based on the dealer's location. Purchase from a private party or an out of state dealer is taxed based on the address of primary use registered by the purchaser.

[speeder]

What does the WA. state site say about tax already paid to another state? That's the issue here. A simple phone call should clear this up better than a bunch of opinions here.

Matt, I did not say that all states require tax from out-of-state buyers. That would be the purpose of a 1-trip permit, which many states still issue. Show out-of-state ID, get permit, drive home. They are usually very cheap. ($10-15). What I said is that no state can collect double-tax on a single purchase as Island suggests in the title of the thread. The state that collected it has to forward it to the state that you register it in, hence the credit for tax already paid. Make the phone call.

[island911]

I called and...it seems that, as strange as it May be Denis is... cough cough... right.

[teenerted1]

none of this sounds right.

this is my take on this
sale done in california?...sales tax paid in california!

drive to washington....already your car now so how could washington charge tax for a sale already completed.

there will be fees/taxes to register here. but cant see how they could charge you "sales tax" when you get home.

[speeder]

Let this be a lesson to you.








j/k

[Steve Carlton]

The One-trip permit allows for registration fees to not become due, not tax. If delivery of the car is taken in CA through a dealer, tax is due. Trucking it out, and perhaps a properly documented hired driving service will negate the need to collect tax. If WA has a reciprocal relationship with CA, they will deduct from what they would collect what was paid in CA (up to the amount they would charge).

See if WA has a reciprocal relationship with CA and you're done. If not, try calling the California State Board of Equalization. They're actually quite helpful. There may be a way to get the tax refunded, although it would likely go to the dealer (good luck).