Sales tax question

I'm buying a 348 from Carmel Motors in Indianapolis. They are insisting that I pay 6% sales tax even though I'm having the car shipped to me here in California. They say that I pay 6% in Indiana, then I will pay the additional 1.5% here in Cali. when I register the car. Cali. will collect the 6% from Indaina. Any Cali. DMV experts out there that can give me some advice. My nightmare is I pay 6%, then Cali. will try to collect 7.5% when I register.
Bee Jay

 

I don't know about Indiana, but I bought a Porsche for Chicago, I paid the tax here. Same with the 348 that came from NC. Tax was paid here at DMV.
Maybe Indy is different?

Haven't come accross this before.

 

Every time I have purchased a car, motorcoach or boat out of state, they have me sign a statement of facts ,saying the vehicle is leaving the state and will be registered in my home state. Maybe someone in Indiana can give insight into their state requirement.

PS. Check to see if a bill of lading out of state will suffice.

Darrell.

 

I bought a car in Colorado and had it shipped to California, paid no sales tax in CO., but Arnie got his 7.75%. That was from a private party, but I wouldn't believe a car salesman in Indy about CA sales tax. You might have to file for a refund in Indy after you register and pay in CA. Call the Franchise Tax Board in both CA and Indy before you get charged twice.

 

This sounds like a way for the dealer to make another 6%. Definitely check it out.

 

+1, try posting this in the midwest section to get the input of some people that live there.

 

Have you called your CA DMV and/or your revenue division? Couldn't hurt. When we bought our boat in NC we paid no sales tax. We paid the PA tax when we registered it. BTW, no matter what happens, save all "big ticket" sales receipts i.e, car, refrigerator, big TV, etc. Federal tax law allows you to substitute that total for your state and and local income tax withheld if it exceeds that figure (they use a table). Could be some recoup there. For a retired guy, I saved this year because I made several large purchases including my 575M. Ckeck with your tax advisor.

 

FWIW, I bought my GT3 from Long Island and I live in NJ. They collected the sales tax and I presented the receipt to my DMV, who said it was unusual but not unheard of. Of course, NY and NJ are kind of close together...

I called the NJ DMV before I went forward. I would call yours.

 

Excellent idea. And get the answers in writing from any gov't agency. Very important. You are guilty until you prove yourself innocent when it comes to paying tax.

 

I bought my 328 from a dealer in Chicago and didn't pay sales tax on it to them. I paid WI sales tax on the car when I registered it.

Years ago I bought a pickup truck in CO and they charged me sales tax then when I registered the truck in CA I showed them the receipt from the CO dealer and they just charged me the difference.

 

I don't even think I had to sign that when I bought my car in NC. Ditto the Porsche I bought out of MO. Both cars came with temporary tags.

I paid sales tax at the DMV when I registered them, brought my purchase docs to verify price paid. (Bought Vaseline beforehand...)

Good advice.

 

Bought my 308 from Colorado, got to pay "the man" when registering it here in Illinois.

 

I bought several cars and motorcycles out of state including my 348. I always pay the tax when register the car at the dmv. It's the only way I will buy. Friends of mine have had nightmares trying to get plates & explaining that they already paid the tax at the dealer. Just pay the tax when you register, it's easy and very clean. No headaches!

 

Likewise I have bought several cars out of state and only on one occasion which was a brand new Vette did I pay sales tax in the State I purchased the car from but themn turned around and claimed it as a tax payment when I registered that car in the State I was living in and an out of State tax payment when I did my taxes.

Martin

 

First of all, congratulations.

There's no way you owe tax to Indy when you live in CA and the car will be a CA registered car. They're filling you full of prunes. Car taxes are due when the car is registered, and payable to the state in which the car will be registered. Theoretically, if you never registered (nor drove) the car, no taxes would ever be due, period.

 

This is 100% correct.

 

Sounds like dealer policy to me, not STATE LAW.

I've run into this myself, when I've refused their "insistence", to date, they've always backed down.

If I wanted this car, and the dealer refuses to let you pay the tax in which it's going, I'd pass, unless I was willing to pay tax in both states.

Trouble is, no matter what cali dmv says, I'd be afraid of trusting them when it came time to "hold them to their word".

just me...

 

Call the DMV in both states and Ask. Im sure Indiana DMV would be happy to answer this. Anytime Ive bought a car in any state (not indiana though) I paid MY states when I registered it. Most states also cap it at $300 or $500 on autos also. Ive not heard of 6%

 

God forbid you should register in PA.

 

I just got of the phone with the DMV. I did 30 pushups and read the entire newspaper while on hold. Some Sacremento radio station playing. But they agreed. I pay the tax (6%) in Indianapolis, and when I register the car here in Cali., I bring proof of purchase price and tax paid. I will have to pay an additional 1.75% only. The lady was very nice and assured me that I would not have to pay 7.75% on top of the 6%.
Bee Jay

 

I've purchased cars in a number of states (private and dealers). NO dealer has ever asked for sales taxes to be paid UNLESS I decide to drive the car from the lot. If you drive off the lot, you pay only because you are 'using' the roads, etc..

A dealer I have used here in Florida will never collect taxes to cars shipped out of state. And, there are states whose sales taxes DO NOT reciprocate to other states.

 

Same here, just purchased in Fla, no sales tax paid there. Car was shipped to me in CT. IF I drove it off the lot in Fla. they said I would've had to pay tax there, then I'd be covered. You can't be double taxed on a purchase.

 

When you paid the IL tax, did the IL DMV call it "usage tax" that was an incremental charge based off the sell price such as when registering a private party purchased vehicle or was it a flat percentage like state sales tax?

 

Dude,

That is absurd!

Don't pay them a penny of sales tax! California will not recognize that payment!

Tell them you'll pay thier 6% at the DMV when you register the car here!

Want to buy a bridge?

 

Bee Jay,

What you were told is correct. If you do pay the sales tax in another state, CA will credit you for that tax and you only pay the difference.

However, you shouldn't have to pay the sales tax in the other State. Dealers sometimes do this out of laziness. For a dealer to not be responsible for their State's sales tax, they have to get a permit, in CA it's $25, that is signed by a bonded transportation company that the vehicle is being shipped out of State. The Dealer has to submit that permit with the other sales goodies to the DMV. A lot of Dealers just don't want the hassle.

Having a large collection of cars, and not wanting to always pay sales tax, I'm a licensed Dealer in California and have abide by all the laws. Carmel Motors is not yanking your chain, you will not have to pay sales/use tax twice. By the way, there are Federal Laws about this double taxation issue, that's why the States can't do it. Kind of complicated and they probably go back to the Boston Tea Party, but they're there.

Steve