Sales tax

[NavyLCDR]

Originally Posted by SunNRain

I'm a Washington State resident that has a "membership" with exclusive rights to a lot in an RV Resort in California. I bought a destination trailer from a dealer in Illinois and paid them to transport the trailer to that lot in California. I paid no Illinois sales tax and the dealer ate the cost of the temporary Illinois plate (trip ticket) to have it transported to California. I don't intend to ever register the trailer in California for travel in their state and I'm not a resident either so I haven't reported it to California and paid no sales tax to them as well. The state of Washington won't be charging sales tax either. If I do ever have to move it (like for dealer service), I will do the same as when I bought it. I'll just buy a temporary trip ticket for a few days. When I sell it, the new owner will have to deal with registration issues with whatever they intend to do with it.

Now that's a win in my book.

Which is very likely in violation of California state law.

[EdnKat]

Originally Posted by Dwinckler

If I buy a vehicle in California but want to register it in Texas do I pay sales tax twice? The dealer is saying yes.

That same thing happened to us from FL to DE. Paid DE's 4.75% to FL, then paid the same % to DE when we got back home in DE. No reciprocal agreement between the states. Was told that WVians are in the same boat, 6% each state. Not going to buy any vehicles in FL from now on that we can't title there. As long as we live in DE.

[NavyLCDR]

I think it's time the question is asked about all these replies of "I bought an RV in state x and registered it in state y, when neither state x nor state y is California or Texas, how is it applicable to the original question asked? I guess it might be useful if someone is reading this thread wondering, "Hmmm..... I wonder how that works in Delaware, or Rhode Island, or.....?"

Just working with the 48 contiguous states, there would be 2,256 different combinations for "I bought an RV in state x and registered it in state y". Out of those 2,256 different combinations, there is only 1 that addresses the original question asked, "I bought an RV in California and want to register it in Texas".

That answer is that according to California State Law, if you drive or tow a vehicle that you purchased off the lot in California, then you pay California state + local sales tax. According to Texas state law, when you register that vehicle in Texas and show Texas the receipt for the California tax that you paid, they subtract it from any sales tax that Texas would charge. Since California sales tax is higher than Texas, there will be no sales tax charged by Texas.

If you want to get out of paying the California sales tax, then the dealer must ship the RV out of state, and the RV must be intended to be used outside the state of California:
https://www.cdtfa.ca.gov/formspubs/pub101/

Buying an RV in any state other than California and registering it in any state other than Texas does not change the original situation. Just sayin'.

[5er_tom]

We once looked at purchasing an new RV in CA. What a mess. To avoid their taxes we would have had to hire a commercial driver to drive the RV out of state, where we would take possession. Then we would not be allowed to drive it back into CA for 6 months.

Even if we had already gotten a license plate from here in NC and taken it with us, we would have to do all the above.

Not buyer friendly.

[wabakami]

Originally Posted by NavyLCDR

I think it's time the question is asked about all these replies of "I bought an RV in state x and registered it in state y, when neither state x nor state y is California or Texas, how is it applicable to the original question asked? I guess it might be useful if someone is reading this thread wondering, "Hmmm..... I wonder how that works in Delaware, or Rhode Island, or.....?"

Just working with the 48 contiguous ..................................

Like a lot of these questions it has become a general education post where we can all learn a bit of info, enough to guide someone to look into it further, etc.

Oh, the op did get his/her question answered.



Stay safe,

Geoff

[timfromma]

Here is Massachusetts, sales tax is due at the time of registration regardless of what state the vehicle was purchased in. If you are moving here from out of state, there is paperwork you can fill out to show that your vehicle is not a new purchase but simply a transfer to avoid sales tax.

[wjijr1951]

Have a look:

https://www.caranddriver.com/researc...car-sales-tax/

[Parrothead Mike]

I worked for a state motor vehicle agency for about 33 years. You should always check with your home state to see if they have tax reciprocity with the state you plan to purchase your vehicle. If there is reciprocity then the sales tax paid in the state of purchase can be applied toward your home state. ALWAYS ask your home state and not the dealer in the state you plan to purchase because your home state is where you will likely title it.

[rmac04401]

Originally Posted by NavyLCDR

The bottom line to learn from this thread is that you should never pay double sales tax. If the state you are purchasing in collects sales tax, it must be recorded on your sales contract. If you paid sales tax recorded on the sales contract, then you present that sales contract to your home state and that amount of tax that was paid is subtracted from the taxes you might owe in your home state.

The only problem with that is if your state sales tax rate % is less than purchase state you don’t get a refund for difference.
I would not buy the RV if I had to do that. Bought in Ohio twice paid tax when I got back to PA

[NavyLCDR]

Originally Posted by rmac04401

The only problem with that is if your state sales tax is less you don’t get a refund.
I would not buy the RV if I had to do that. Bought in Ohio twice paid tax when I got back to PA

And I was also wrong about never paying double sales tax. In at least one state - Delaware, you will pay double sales tax. Delaware does not give credit for out of state tax paid.

[imjustdave]

Originally Posted by NavyLCDR

And I was also wrong about never paying double sales tax. In at least one state - Delaware, you will pay double sales tax. Delaware does not give credit for out of state tax paid.

I figured there had to be at least one... that would suck.

I agree check you local dmv before your purchase the rules change all the time for things so don't get messed up.

I have shipped out of CA before and paid sales tax as I request it for loan purposes and have purchased from other states. my state is 10% so if your lower feel lucky.

[AlaskaErik]

Originally Posted by imjustdave

I have shipped out of CA before and paid sales tax as I request it for loan purposes and have purchased from other states. my state is 10% so if your lower feel lucky.

My state is zero. I guess that makes me really lucky. And for $85 I can get a permanent registration that never needs renewing, so just one trip to the DMV.

[jlynn721]

Originally Posted by Dwinckler

If I buy a vehicle in California but want to register it in Texas do I pay sales tax twice? The dealer is saying yes.

NO!!!!!!

But, for an RV, you have to take delivery outside of CA. If in SoCal, that means taking delivery in Primm, NV or Ehrenberg, AZ.

I took delivery in Primm. CA and dealer required a notary at the scene to document delivery out of state.

Of cours, this will cost you a several hundred dollars. Technically, I believe you aren’t suppose to return to CA for 6 months, but that’s almost impossible to enforce.

Good luck

[NavyLCDR]

Originally Posted by jlynn721

NO!!!!!!

But, for an RV, you have to take delivery outside of CA. If in SoCal, that means taking delivery in Primm, NV or Ehrenberg, AZ.

I took delivery in Primm. CA and dealer required a notary at the scene to document delivery out of state.

Of cours, this will cost you a several hundred dollars. Technically, I believe you aren’t suppose to return to CA for 6 months, but that’s almost impossible to enforce.

Good luck

Completely false. As already explained by the Texas law that posted.

[jlynn721]

Originally Posted by NavyLCDR

Completely false. As already explained by the Texas law that posted.

Not sure what you mean by completely false (the dealer?).

I stated exactly what I did (except Texas wasn’t involved, South Dakota was)

[NavyLCDR]

Originally Posted by jlynn721

Not sure what you mean by completely false (the dealer?).

I stated exactly what I did (except Texas wasn’t involved, South Dakota was)

Texas is not South Dakota. Once again...when the RV is registered in Texas they subtract the tax that was paid to California leaving no taxes due in Texas. Sales tax is only paid once, to California, but not to Texas.

Your statement is also false in South Dakota, as a matter of fact:
https://sdlegislature.gov/Statutes/C...d_Laws/2053881

32-5B-11. Credit for taxes paid to this or another state.

If any motor vehicle has been subjected previously to a sales tax, use tax, motor vehicle excise tax, or similar tax by this or any other state or its political subdivision, no tax is owed to this state if the tax has been paid by the applicant to this or any other state. Additionally, any part used in a rebuilt motor vehicle or motor vehicle manufactured by an applicant, previously subjected to sales tax, use tax, motor vehicle excise tax, or similar tax by this or any other state or its political subdivision, is not subject to the tax levied by this chapter, if the applicant applies for registration of the motor vehicle in this state within five years from the purchase date of the part. If the amount of tax levied and paid is the same or more than the amount of tax levied by this chapter, no tax or refund is due under this chapter. The county treasurer shall require of all applicants making application for registration of a motor vehicle in this state an affidavit of a licensed dealer, bill of sale, receipt, or other tangible evidence that the amount of tax has been paid by the current applicant. If sufficient proof is not furnished, the county treasurer shall collect the tax levied by § 32-5B-1 on the retail value of the motor vehicle listed in the National Automobile Dealers' Used Car Guide (NADA). The value shall be the retail value of the motor vehicle on the day it entered the state. If a motor vehicle, after being taxed by this chapter or granted an exemption from part or all of the motor vehicle excise tax by this provision, is sold or traded, the vehicle does not again qualify for an exemption by this provision, if the vehicle is repurchased by the same applicant.

[D W]

Originally Posted by AlaskaErik

My state is zero. I guess that makes me really lucky. And for $85 I can get a permanent registration that never needs renewing, so just one trip to the DMV.

X2 on the Z Tab permanent registration for trailers! Additionally, my bride an I are over 65 and have our rigs titled in our own names, not co-owned. We both get the Senior Citizen permanent registration P Tab for our daily drivers. No more renewals an no more motor vehicle tax!

[Bob43]

I got my grey wolf in OHIO , NO tax paid there But I had to pay tax when I did the Reg in my home state of NC

[Puppysox]

I've done this many times. You will just pay the difference, if there is one. Depends on the tax rate.