CA use tax when you are shipping car for use out of CA? Help.

RANDY P · RANDY P's Garage

If you buy a car from a private party in CA and drive it out of state to get registered and licensed do you have to pay sales tax to CA?

I'm used to simply surrendering the CA title to the new state, and paying registration fees in the new state and that's it.

Is the DMV here gonna collect sales tax on the vehicle for CA?

rjp

Joe Bob · Joe Bob's Garage

Only if your state demands it....CA can pound sand.

If bought from a dealer, you can apply the paid CA tax towards what's required in your home state.

RANDY P · RANDY P's Garage

Quote:

Originally Posted by Joe Bob

Only if your state demands it....CA can pound sand.

If bought from a dealer, you can apply the paid CA tax towards what's required in your home state.

So, if I go to CA, buy a vehicle from some private party who has title in hand and drive it home I don't need to pay use tax to CA?

Porsche-O-Phile · Porsche-O-Phile's Garage

The only way you might get in trouble is if you get a CA DMV "ferry" registration. I'd just check with your state to see if you can obtain one and you should be okay - how would they know otherwise? The seller will file a sale form with CA DMV and they'll know the car was sold (so he's no longer on the hook for any tickets, etc.) but beyond that if you're out-of-state and they can't prove any use in CA, how can they go after you?

The absolute best thing you could do is buy the car and have it shipped. AFAIK you could tell CA DMV and Franchise Tax Board to go F themselves with a rusty steak knife at that point as it's an interstate transaction and not subject to their taxes or jurisdiction and there was no "use" in CA regardless.

Joe Bob · Joe Bob's Garage

If it's still registered and the tags aren't expired, jump in and drive it home. Unless you are worried about the black helicopters. I use a foil helmet......

9dreizig · 12-20-2011, 07:37 AM

Absolutely not!!!!

RANDY P · RANDY P's Garage

It's the state of CA guys- who knows what kind of funky bill I might get in the mail....I'm paranoid from too much time in PARF.

thanks!

rjp

Joe Bob · Joe Bob's Garage

Blame your paranoia on Fintstone....

Back in the day.....I bought a bug or a vw van....had like 15 transfers. Every owner religiously kept track of them.

I tripped at the door of DMV and lost 14 of them. If I had presented ALL the transfers....I woulda been on the hook for sales tax on everyone.

Screw em.....you bought the ride on a street corner down the road from your house.

Tobra · Tobra's Garage

Quote:

Originally Posted by RANDY P

So, if I go to CA, buy a vehicle from some private party who has title in hand and drive it home I don't need to pay use tax to CA?

No

The only way you are not asked to pay CA tax is if you use a company that will ship it out of state. You can't ship it yourself either, as I understand it it must be an approved transport company.

When the prior owner's change of ownership papers hit the DMV, they will send you a bill. It is a guilty until proven innocent situation. You have to prove you did not drive the car in CA after you bought it.

RANDY P · RANDY P's Garage

I figured that much. Bastards.

rjp

9dreizig · 12-20-2011, 08:26 AM

If it were "delivered" out of state they can't do anything to you.. Where do you live? A Uhaul trailer will save you from "driving" it in CA

McLovin · 12-20-2011, 08:32 AM

Quote:

Originally Posted by RANDY P

I figured that much. Bastards.

rjp

Not sure which post you are referring to, but there's a lot of wrong info here.

You won't have any trouble from California. You can buy the car in California, fly in, and drive it home, and you won't have any sales or use tax issues. On private party used car sales, it doesn't need to be "delivered" out of state, etc. (those are all issues that only arise on sales by licensed dealers, not private parties).

On private party used car transactions, California collects the California sales tax when the car is registered by the new owner in California.

Since you won't be registering the car in California, there is no issue. They won't know or care how the car was "delivered" to you, etc. for sales tax purposes.

speeder · speeder's Garage

What McLovin said. ^^^

Honest to god, there is a lot of misinfo on this board. You could buy 100 cars from private parties in CA. this weekend, hire a bunch of hippies to drive them to every corner of the U.S. and register them in different states and never hear one word about it from the CA. DMV. Ask me how I know.

pwd72s · 09:35 AM

Quote:

Originally Posted by RANDY P

So, if I go to CA, buy a vehicle from some private party who has title in hand and drive it home I don't need to pay use tax to CA?

Exactly...at least it used to be that way. Washington State dealers advertise "No sales tax to Oregon buyers"...Oregon has no sales tax. I almost bought a car from the old Vasek Polak dealership back in the early 70's...I was assured no sales tax to Oregon residents.

myamoto1 · myamoto1's Garage

Quote:

Originally Posted by McLovin

Not sure which post you are referring to, but there's a lot of wrong info here.

You won't have any trouble from California. You can buy the car in California, fly in, and drive it home, and you won't have any sales or use tax issues. On private party used car sales, it doesn't need to be "delivered" out of state, etc. (those are all issues that only arise on sales by licensed dealers, not private parties).

On private party used car transactions, California collects the California sales tax when the car is registered by the new owner in California.

Since you won't be registering the car in California, there is no issue. They won't know or care how the car was "delivered" to you, etc. for sales tax purposes.

This was my experience when I bought my car from Cali. I did have mine shipped, but that was only because shipping it was cheaper than taking time off and flying down to drive it home. I paid taxes in my home state when I registered it.

kaisen · 12-20-2011, 09:52 AM

Quote:

Originally Posted by speeder

Honest to god, there is a lot of misinfo on this board. You could buy 100 cars from private parties in CA. this weekend, hire a bunch of hippies to drive them to every corner of the U.S. and register them in different states and never hear one word about it from the CA. DMV. Ask me how I know.

Quote:

Originally Posted by NotaBRG

Ok, so how much do the hippies charge to deliver? I may need them at some point in the future.

I may or may not know of this

speeder · speeder's Garage

Quote:

Originally Posted by NotaBRG

Ok, so how much do the hippies charge to deliver? I may need them at some point in the future.

Well, the hippies are free if you find them on craigslist and they need a ride somewhere. There can be some breakage/shrinkage at times, however. You need to budget that into the business plan.

Rick Lee · Rick Lee's Garage

Randy, are you going to title this in AZ? If so, there's no sales tax in AZ on private party vehicle sales. But if you buy from a dealer, even one out of state, or a dealer is the last registered owner on the title, you pay the full 9.xx% here.

doug_porsche · 12-20-2011, 01:57 PM

I have heard that if the Bill of Sale says you took possession in a state other than Calf....

RANDY P · RANDY P's Garage

Quote:

Originally Posted by Rick Lee

Randy, are you going to title this in AZ? If so, there's no sales tax in AZ on private party vehicle sales. But if you buy from a dealer, even one out of state, or a dealer is the last registered owner on the title, you pay the full 9.xx% here.

Yep, it's going to AZ assuming it's not a crapped out POS.

We'll see shortly.

Now I've got TWO cars to sell. Damn. I'm hatin it.

rjp