CA sales tax | FerrariChat

CA sales tax

Discussion in 'California (Southern)' started by burnout04, Jun 3, 2008.

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  1. burnout04

    burnout04 Karting

    Sep 16, 2005
    156
    Malibu/Dubai
    If I buy a car in California do I have to pay California sales tax at purchase if I do not plan on registering the car in CA? Also vice versa, if I buy a car in another state and tell them I'm taking it to California do I have to pay sales tax at purchase? Is there a way that you can defer the sales tax until registration or something of that nature?
     
  2. Telerding

    Telerding Formula Junior

    Sep 30, 2004
    362
    Santa Maria/CA
    Full Name:
    Tom Elerding
    lf you buy a car in California, and plan to take it out of state, you don't have to pay the sales tax. I'm not sure what it takes to prove out of state residence, but am sure an out of state drivers license with a valid address on it should work.

    If you buy a used car from a private individual in California, then the use tax (sales tax) is collected when the registration comes due. You initially pay only a transfer fee. So if you buy a car in June whose registration month was April, you can defer the tax until you pay the next year's license.

    If you buy a car out of state, and tell that seller that you are taking it to California, you pay no sales tax there, but when you try to register it in Cali, they will charge the use tax. The exception to this is IF you buy it out of state, then keep it and USE it out of state for 90 days, the use tax can be waived. The time period has varied. A few years ago, the state changed it to 1 year, but changed it back to 90 days last July. I have heard talk this year about changing it again to the longer period.

    These rules could have changed recently, so check the DMV web site.
     
  3. SrfCity

    SrfCity F1 World Champ

    Not entirely true. With a private sale you have 10 days to register the vehicle in your name. Sales/use tax is due upon transfering, plus a transfer fee, or a penalty is incurred.
    http://www.dmv.ca.gov/vr/vr_info.htm#BM2522
     
  4. frefan

    frefan F1 Veteran

    Apr 21, 2004
    7,370
    fwiw cali cops will be all over you with out of state plates, you're just asking for trouble IMO. do so much as fart with the windows down and you'll be in court. to answer your question they will charge sales tax at time of registration iirc
     

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