lexi4darin

Hey guys,

In the past, I've had some friends buy cars from out of state. I don't remember if they paid taxes or not however, I've been planning to purchase my IS in OR in the hopes of getting a sweeter deal at invoice and possibly avoid CA sales tax.

While at the DMV.org site, there is information stating that I can't bring the car over for registration until 365 after the purchase and when I finally do bring the car over I'll pay a use tax (which looks to be a fancy way of saying sales tax).

"When a vehicle is brought to California within 12 months from the date of purchase, use tax may be due." ... may be due?
reference: http://www.dmv.ca.gov/pubs/brochures...cts/ffvr10.htm (use tax heading)

Can anyone confirm or deny the registration process for purchasing a car in OR for a CA resident? Will I still pay tax in CA after this purchase (I'm a CA resident with no ability to keep the car in OR for a year or more)?

Help would be appreciated...

TimboIS

You may be able to get a better deal outside CA, But you WILL pay the tax, no way around it if you're a CA resident. AND you will have to get it inspected/smogged/etc before being able to register it in CA.

Jdmekcivic

I bought my IS350 in Nevada. You can always state the sales price is less than what you paid. I didn't because I am too honest but it would be possible.

When the car came into California you have 30 days to get a smog and have it registered. Make sure the dealer sends all the paperwork to your nearest DMV. Let me know if this helps answer your questions....

IS350_PHIL

iTrader: (2)

You really can't fudge the numbers unless the dealer is in on it. I just paid the taxes on my car that I got in CO and they require the paperwork from the dealer or lien holder, the vehical origination title, and some other stuff. I suppose if you pay cash, you might get away with it somehow.

One interesting story I heard on the board - someone from CA has family living in a state with no sales tax (WA I think) bought and registered the car in that state (at the family members house) drove it with the out of state plates until the some amount of time passed, then registered with CA and did not have to pay CA taxes. I am not sure if it is true or not, but it is an interesting idea...

unit74

iTrader: (3)

You have to prove the car is 6 month old, or has 7500 miles on the odo, and has not been housed in Cali in order to avoid taxes. And if you paid tax on it from Oregon, they will subtract that tax amount and you'll have to pay the difference.

I buy my motorcyles from out of state and have tried to avoid taxes, but end up paying them.........seems silly that I can buy anything I want on the internet tax free, but if I buy something with a motor, the rules change......

gsrthomas

iTrader: (1)

It is possible to get away with it.

I have a friend that purchased a NSX out of state and he DID NOT pay says tax and hes a LAWYER.

Those of you who say it can't be done OF COURSE IT CAN! Anything can be done if you are cleaver enough and put your mind to it.

All you do is. Purchase the car in Oregon. Get a PO Box there or better yet get a physical address if you have a friend living there. You will get your OR plates. Drive around for a year in Cali and after 12 months re-register it here in California and they CANNOT make you pay the salestax.

This is just a breif explaination. I have two friends that were successful in doing it this way.

The only risky part is you have to try to make sure you dont get pulled over because the CHP will ask questions than.

TimboIS

Wow, what are the odds... a dishonest lawyer.

lexi4darin

So the DMV page shows you have to have the car for more than 12 months or else you "may have to pay use tax" (use tax = sales tax) So what does "may have to pay" mean? (I'm actually reading the exemption policy at the Tax Board; see bottom of post)

From the DMV-
"Use tax rates vary by county and are generally assessed at the same rate as sales tax in the registered owner's county of residence. When a vehicle is brought to California within 12 months from the date of purchase, use tax may be due. An applicant who purchases a vehicle out-of-state may receive a credit toward the California use tax due for any sales or use tax paid to another state prior to entering California. The tax credit shall not exceed the California tax that is due. For additional use tax information, contact the Board of Equalization online, or by phone at 800-400-7115."

Fromt the Board of Equalization -
http://www.boe.ca.gov/pdf/pub52.pdf

Anyone understand what's on page 5, Section Purchased or delivered out State -- not intended for use in California ????????????????

Help! This would be a lot of work to go through to find out, any claim was denied and suddenly getting hit with $3k-4k worth of sales/use taxes.

gsrthomas

iTrader: (1)

This means as I said before. You cannot live in Cali and have a car with out of state plates. Of course there are exemptions to this. Out of state students, you have another property in OR, etc.

The crucial thing to avoid is not getting pulled over by the Police. Because they will ask questions, etc. Cops wont pull you over if they see an out of state plate. Make sure you dont speed, etc. If you get pulled over you can simply say you go to school here, etc.

lexi4darin

Ok so if you're right, then how can anyone at the DMV or Board of Equalization prove either case? If either case is this arbitrary, how can it be enforced either way?

I can easily pull the student card (cuz I am) and easily pull the I live out of state card (cuz I own no property in CA nor am I on any lease or rental agreement).

But when the time comes to officially get my car registered in CA, how do I prove any of this to the under-paid over-worked DMV employee who says, "Pay or you don't get your tags" ?

gsrthomas

iTrader: (1)

You are in a perfect situation to do this. I say go for it.

After 12 months and a certain number of miles when you register the car the DMV CANNOT charge you tax. Yes after 3 or even 6 months when you try to register it in Cali they will want you to pay tax but after 12 months they arent going to charge you.

I say go for it. Like I said two of my friends have done this without any complications.

Sexi_Lexi

Question, if you do this and get pulled over, how can you say you're from out of state when you have a CA driver's license???

gsrthomas

iTrader: (1)

He has both licenses. Its not hard to get a drivers license at neighboring states. I can go to NV tomorrow and get a license if I wanted to.

Lexmex

Florida has a special thing called a Florida only license. Basically, you can register your car, tags and must have FL insurance and you present your out-of-state license and ask for a Florida only license, they then give you back your out-of-state license and your FL license. I am not sure of the actual reason behind this. In Florida, you had to have had the car 6 months (based on the title date) and then you will be exempt from Florida sales tax.

TimboIS

Possessing multiple drivers lisences if DEFINITELY illegal.