Out-of-State car purchasers pay tax twice?!

Mike · 12-01-2010, 12:49 AM

Just saw this post from a california dealer on the corvette forum, having a sale on ZR1s. This was at the bottom:

Out Of State Buyers pay no fees. If you would like to fly in and drive the car home, you will have to pay 9.25% California sales tax. You can have the car shipped from our dealership to your state and you won't have to pay the 9.25% California sales tax. You will be responsible for shipping, registering, and paying the sales tax in your own state

I seem to recall that when I was in the military and lived in CA but was a florida resident, anytime I bought a car, I paid CA sales tax, and then FL would waive the difference between the two when registering, but it was always zero because CA taxes are higher then FL.

ClemsonWill · 12-01-2010, 07:14 AM

Mike beat me too it. California sales tax is high. You might be better off shipping it so you only have to pay your state sales tax. (South Carolina max is $300 for automobiles

) Property taxes will always be paid in your home state.

ImportConvert · 12-01-2010, 08:28 AM

Quote:

Originally Posted by Mike

Just saw this post from a california dealer on the corvette forum, having a sale on ZR1s. This was at the bottom:

Out Of State Buyers pay no fees. If you would like to fly in and drive the car home, you will have to pay 9.25% California sales tax. You can have the car shipped from our dealership to your state and you won't have to pay the 9.25% California sales tax. You will be responsible for shipping, registering, and paying the sales tax in your own state

I seem to recall that when I was in the military and lived in CA but was a florida resident, anytime I bought a car, I paid CA sales tax, and then FL would waive the difference between the two when registering, but it was always zero because CA taxes are higher then FL.

+1 You nailed it. I asked, too, lol

EValentin1 · 12-01-2010, 09:59 PM

Quote:

Originally Posted by Mike

Just saw this post from a california dealer on the corvette forum, having a sale on ZR1s. This was at the bottom:

Out Of State Buyers pay no fees. If you would like to fly in and drive the car home, you will have to pay 9.25% California sales tax. You can have the car shipped from our dealership to your state and you won't have to pay the 9.25% California sales tax. You will be responsible for shipping, registering, and paying the sales tax in your own state

I seem to recall that when I was in the military and lived in CA but was a florida resident, anytime I bought a car, I paid CA sales tax, and then FL would waive the difference between the two when registering, but it was always zero because CA taxes are higher then FL.

I just went through something similar. Big pain in the *** but it all worked out. So I bought my Z in New Jersey. While at the dealer I was getting ready to sign and noticed they were charging 9% sales tax....this set off alarms in my head. When i asked it was "to cover oursleves in case you register the car in a state that has a higher tax and we dont want to get stuck paying the difference." I still questioned them because i opted for the dealer to register the car themselves in Virginia (where i lived at the time. Im military so i move quite a bit). Probably would have been easier to just register the car myself and save me the hassle. Anyway, they ended up sending all the info to the Virginia DMV (tax in VA is 3%). After Virginia reviewed all the paperwork and sent the plates to the dealer, they also included information about the VA tax only being 3%. Long story short, the dealer reimbursed me 6% tax on the purchase. Confusing I know...but like i said it all worked out in the end! If you have any more questions feel free to shoot me a PM.

Super Tanooki · 12-02-2010, 07:31 PM

Thanks for all you guys' help.

This...

Quote:

Originally Posted by Mike

Just saw this post from a california dealer on the corvette forum, having a sale on ZR1s. This was at the bottom:

Out Of State Buyers pay no fees. If you would like to fly in and drive the car home, you will have to pay 9.25% California sales tax. You can have the car shipped from our dealership to your state and you won't have to pay the 9.25% California sales tax. You will be responsible for shipping, registering, and paying the sales tax in your own state

I seem to recall that when I was in the military and lived in CA but was a florida resident, anytime I bought a car, I paid CA sales tax, and then FL would waive the difference between the two when registering, but it was always zero because CA taxes are higher then FL.

...and this...

Quote:

Originally Posted by ClemsonWill

Mike beat me too it. California sales tax is high. You might be better off shipping it so you only have to pay your state sales tax. (South Carolina max is $300 for automobiles

) Property taxes will always be paid in your home state.

...make perfect sense - basically, I buy the car in Cali, I'll pay Cali tax, which is higher than the tax in my state, Nevada. And in that case I might be better off paying shipping (or just waiting to buy one in Nevada) so that i only pay NV tax. Right?

But then this...

Quote:

Originally Posted by FuszNissan

Mike is correct, you pay tax where you register the car.

...seems like a conflicting statement. I'll be registering the car in Vegas, because that's where I live. Sooo... I pay Nevada tax?

And this...

Quote:

Originally Posted by EValentin1

After Virginia reviewed all the paperwork and sent the plates to the dealer, they also included information about the VA tax only being 3%. Long story short, the dealer reimbursed me 6% tax on the purchase. Confusing I know...but like i said it all worked out in the end! If you have any more questions feel free to shoot me a PM.

...says to me the dealer will want to charge me Cali tax, but so long as I point out that the car will be registered in Nevada, they'll charge me NV tax (or reimburse the difference after the sale goes through).

Sorry, am I being a dumbass? It doesn't seem clear.

Oh, and don't worry Josh - I won't be taking any chances with insurance for my precious Z.

EValentin1 · 12-02-2010, 07:43 PM

Quote:

Originally Posted by Super Tanooki

Thanks for all you guys' help.

...says to me the dealer will want to charge me Cali tax, but so long as I point out that the car will be registered in Nevada, they'll charge me NV tax (or reimburse the difference after the sale goes through).

Sorry, am I being a dumbass? It doesn't seem clear.

Correct. You should get reimbursed if the tax in NV is less than the tax they charge you after the registration process is complete.

12-01-2010, 12:49 AM	#1 (permalink)
Mike The370Z.com Sponsor Join Date: Jun 2009 Location: Loganville, GA Posts: 5,944 Drives: 370z Rep Power: 2186	Just saw this post from a california dealer on the corvette forum, having a sale on ZR1s. This was at the bottom: Out Of State Buyers pay no fees. If you would like to fly in and drive the car home, you will have to pay 9.25% California sales tax. You can have the car shipped from our dealership to your state and you won't have to pay the 9.25% California sales tax. You will be responsible for shipping, registering, and paying the sales tax in your own state I seem to recall that when I was in the military and lived in CA but was a florida resident, anytime I bought a car, I paid CA sales tax, and then FL would waive the difference between the two when registering, but it was always zero because CA taxes are higher then FL. Ghostvette likes this. __________________ NISSAN: 75 280Z / 86 300ZX GLL /87 Sentra SE / 03 350Z / 23 Z Porsche: 93 968 / 23 Macan GTS / 93 968

12-01-2010, 07:14 AM	#2 (permalink)
ClemsonWill A True Z Fanatic Join Date: Jul 2010 Location: Charleston, SC Posts: 12,045 Drives: a Civic VP! Rep Power: 445	Mike beat me too it. California sales tax is high. You might be better off shipping it so you only have to pay your state sales tax. (South Carolina max is $300 for automobiles ) Property taxes will always be paid in your home state. __________________ Slightly modded

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