Michifan12

iTrader: (2)

Ok so basically we're buying a car from Lexus of Glendale in Southern California and the dealer just came back and said unless we have the car shipped to New Mexico, we have to pay state sales tax. And then I would have to pay sales tax AGAIN in NM when I register it here.

This doesn't seem right to me - can anyone please shed some light in the matter? Thanks!

Corey140

I'm not sure about a CA/NM agreement but some states, they tax the required amount of tax on the car in the state where it is purchased and they will send the money to the state where the car is registered. Sales tax should only be paid in the state where the car is registered not purchased. One way or another, you will be refunded by CA or NM, if you are doubled taxed....

Ingram4868

Depending on what your sales tax is in NM it might not be that much more to have the car shipped to you. The Lexus program has a pretty good system to ship cars around.

I live in Nevada and the car color and option combination my wife wanted matched a car at a Lexus dealer in California. Our dealer had the car shipped to them (took 5 days) and we did not paid anything extra for that. But we did pay MSRP which gave our dealer more wiggle room to eat the shipping cost.

toneman

I'm not a vehicle finance or DMV specialist by any means, nor have I been in a situation similar to yours, but FWIW--CA residents are charged sales tax based on which county they officially live in (it sucks to live in a county such as Alameda since IIRC their combined state/local sales tax rate is 8.75%)...or perhaps technically where the vehicle will be garaged...although I don't think I've ever been asked specifically about that since for the most part, the dealer will use the information that's on your drivers license to determine your location of residence for sales tax purposes.

Now since you're not a CA resident, I can see the dealer doing one of two things--charge you the base CA sales tax and process the paperwork so that you'll either pay or get a refund of the difference between CA and NM sales tax, or have the knowledge to be able to properly fill out NM-related title/registration/purchase paperwork such that you are charged the correct sales tax for your place of residence.

ESsearch

I purchased an ES from Mission Viejo and I live in Missouri. The salesperson told me that as long as I did not drive the car off their lot, they would not have to charge sales tax. I had the car shipped in and indeed, did not pay any CA taxes.

Pete
Aquamarine UL

Michifan12

iTrader: (2)

Thank you - you confirmed what the situation. We would have to have the car shipped.

I still find that odd on behalf of California but I guess they did that so California residents don't register vehicles outside of the state to avoid paying higher fees and taxes.