Is it just me or does it seem totally asinine to pay sales tax on a USED car? And the luxo/gas tax is just fucking stupid. Fuck, next thing you know the gov't is going to start taxing sales on ebay, those greedy bastards. :fist:
Fuck, next thing you know the gov't is going to start taxing sales on ebay, those greedy bastards. :fist:
In NY they expect you to fill out a section on your NY State income tax form on the amount of money you purchased out of state tax free so they can collect those fees. Also the kicker is if you go shopping in a different county that has 4% sales tax and where you live has 6% they want that 2% paid to them also.
I am buying out of state and the Dealer says he does not collect the CA state tax. He says CA DMV will tax me on the Total Sales Price, including the Gas Guzzler Tax.
I have tried to call CA DMV about it...they did not know for certain. They just say to "bring it in" and they will figure it out.
I am buying out of state and the Dealer says he does not collect the CA state tax. He says CA DMV will tax me on the Total Sales Price, including the Gas Guzzler Tax.
I have tried to call CA DMV about it...they did not know for certain. They just say to "bring it in" and they will figure it out.
Right...
The DMV will most definitely have you pay the tax when you register it. But I'm not sure if the GG tax is in addition to that or not.
I can actually tell you how this works, having done so myself many years back.
The DMV will indeed collect the sales tax, but how do they know how much you paid for the car? The "receipt" of course! When I worked with Big Willy Pemberton at Woodhouse, he made sure the "receipt" had no extras on it, like the warranty I bought, cost to ship, etc. Work with your person to furnish you with a receipt for the lowest possible value you feel you can get away with.
To your specific question, you're lucky if the person at DMV can even calculate the tax after you give them a value - so don't expect them to know what to count in and what not to. You have to just give them a receipt with a number in the "Total" box that they can spend 10 minutes and 2 supervisors with over a calculator. For example, my faithful state employee saw the make as a "Dodge" and thought for sure I made a mistake when I told her the value. I could have showed a receipt for $20k and it would have went right through. The look on the person's face when I pulled it through for the initial inspection was good though.
If I did it again I would simply ask for a blank receipt so I could give myself a tax break Note that since your DMV yearly fees are based on value, you're also doing yourself a favor by starting it off as low as you can get away with.
Unfortunately YOU are not actually paying the gas guzzler tax.
You are compensating Dodge for having to pay that tax to the Gov't.
Only the manufacturer of vehicles is beholden to pay gas guzzler tax (or importer for foreign vehicles).
Dodge puts it on the window sticker for shits n giggles, there is no particular reason they put it on there other than to show you what they had to pay the gov't for the privilege of selling the car to you.
I bought my srt from texas and drove it back to california. We you buy an out of state vehicle, the dmv doesn't ask for a bill of sale. What happens is that the dmv worker asks you verbally what you paid for the car. As long as the figure is reasonable then you'll pay the sales tax on what you tell them. I personally bought my srt for 70k and told the dmv I bought it for 50k. As long as you don't say some figure that's impossible you'll pay sales tax on what you tell them. In state purchases are different where the dmv requires a bill of sale. Also, make sure you register your vehicle withing the 20 days the dmv gives to register the vehicle from when it enters california. If you pass the 20 day mark you pay a 30% penalty.
We you buy an out of state vehicle, the dmv doesn't ask for a bill of sale. What happens is that the dmv worker asks you verbally what you paid for the car.
Every state works differently. In some states, they ask for bill of sale, some they ask you how much you paid, and in some, they have a reference book or program for determining the tax value of a car. Just as with traffic tickets, the way car taxes work differ by state, so everyone spouting off here is likely of little use to the original poster.
I have purchased several cars out of state and brought them back to TX. When you go to get your registration they ask for a bill of sale. Now, of course you can make a fake bill of sale with a bogus price on it and forge it.....but, TX is known for checking into sales by contacting the dealer listed on the bill of sale to validate your numbers. All it takes is for them to check one time and you're screwed. IMO it's not worth the hassle and possible charges of fraud and forgery to pocket a grand or two. My 0.02
Peter
The way to avoid the sales tax is not to cheat on the sale price but convince the local tax office(not the dmv) that u are a new resident to the state u live in..
Note that since your DMV yearly fees are based on value, you're also doing yourself a favor by starting it off as low as you can get away with.
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