CA taxes on out of state buy | FerrariChat

CA taxes on out of state buy

Discussion in 'California (Southern)' started by DaveGee, Jun 24, 2022.

This site may earn a commission from merchant affiliate links, including eBay, Amazon, Skimlinks, and others.

  1. DaveGee

    DaveGee Karting

    Dec 25, 2005
    56
    So my friend, lets call him Larry, is buying a car from outside of California from a private seller. What creative, and relatively safe ways have others found to reduce the CA taxes when registering the car here?

    For any CA tax authorities that may be reading this, this is purely hypothetical.

    DaveGee (not Larry)
     
  2. mcw

    mcw Karting

    Aug 10, 2008
    186
  3. Innovativethinker

    Innovativethinker F1 Veteran
    Silver Subscribed

    Aug 8, 2009
    8,601
    So Cal
    Full Name:
    Mark Smith
    Sales tax is based on the amount Contained in the bill of sale.

    be sure one is provided.
     
    eskamobob1, TestShoot and OCKlasse like this.
  4. TipoF129

    TipoF129 Karting

    Mar 27, 2021
    71
    Los Angeles
    Full Name:
    ROBERT BROPHY
    You could ask the private seller to write bill of sale for a lesser amount than paid? It would be a big ask, but if they’re feeling generous…


    Sent from my iPhone using FerrariChat.com mobile app
     
  5. U-Boat Commander

    U-Boat Commander Formula 3
    Silver Subscribed

    Jun 7, 2008
    1,119
    USA
    I heard that Arizona does not tax private party sales of autos and you can register a car there for two years. Right next door to Cali. Of course, the law requires that the car not be used in Cali for at least a year.
     
  6. ForzaV12

    ForzaV12 Formula 3

    Sep 15, 2006
    1,818
    Laguna Niguel
    Full Name:
    Steve
    Actually AZ will reg cars up to 5 years with no sales tax between private parties.. You do need an AZ address and ID though.
     
  7. Monteman

    Monteman Formula 3
    Rossa Subscribed

    Feb 9, 2006
    2,323
    Santa Barbara, CA
    Full Name:
    Monte
    ...then there is the Montana LLC route.
     
  8. plastique999

    plastique999 F1 Veteran
    Owner Silver Subscribed

    Nov 9, 2008
    8,539
    SoCal
    Full Name:
    Edward

    Correct, it’s the value you “state” on the bill of sale….


    Sent from my iPhone using Tapatalk
     
  9. sampelligrino

    sampelligrino Formula 3

    Apr 16, 2017
    1,129
    This is really the only option I’d consider but could have some headache and sacrifice

    ~$3-5k to establish LLC and register car in MT, MT doesn’t even need to see the car

    Clock starts ticking where you can “move”/register the car in CA no earlier than 1 year later without CA asking for their 10%

    Now in between now and 1 year later is up to your friend. Heard of people leaving the car in storage out of state for 1 year to be fully “legal” then bring it in, some people throw caution to the wind and drive their car in CA with MT plates, others leave the car in their garage and use sparingly…

    Personally I just really wish CA allowed trade-in credit towards sales tax, so greedy not to


    Sent from my iPhone using Tapatalk
     
  10. RonH

    RonH Formula 3

    May 29, 2016
    1,061
    Newport Coast, California
    Full Name:
    Ron H
    https://youtu.be/l0zaebtU-CA
     
  11. TommyTheV

    TommyTheV Karting

    Sep 17, 2022
    221
    San Diego, CA
    Full Name:
    Tommy T.
    Don't think there is any other way if you want to enjoy your car fully.

    CA is one of those states where lube is an ADDITIONAL charge when they bend you over...:rolleyes:
     
  12. Monteman

    Monteman Formula 3
    Rossa Subscribed

    Feb 9, 2006
    2,323
    Santa Barbara, CA
    Full Name:
    Monte
    It's not that expensive nor difficult. Check out the web site of John Bennett. He's the attorney that most use. https://www.bennettlawofficepc.com/
     
  13. sampelligrino

    sampelligrino Formula 3

    Apr 16, 2017
    1,129
    That is my firm and for >500k I think it was $3-5k for me all-in

    Not difficult to set up, obviously cost effective, I just didn't like driving around CA on MT plates
     
  14. F456 V12

    F456 V12 F1 Rookie
    Silver Subscribed

    Mar 13, 2004
    4,728
    Coto de Caza
    Full Name:
    Christian
    It is not always the CHP you have to worry about, could be the neighbor next door, jealous girlfriend/ex wife or some progressive who hates successful people.

    When we moved from AZ to CA, wife got pulled over dropping the kids off for school, got a warning and remind she had 15 days. Every new school year the police patrol schools looking for out of state plates, a few days in a row, dropping off kinds is all the proof they need.

    MB

    https://www.dmv.org/articles/chp-cracks-down-on-out-of-state-registrations.php
    https://www.chp.ca.gov/Notify-CHP/CHP-REG-(Out-of-State-Registration-Violators)
     
  15. ChipG

    ChipG Formula 3

    May 26, 2011
    1,722
    Santa Monica, CA
    it's called tax fraud and the IRS will catch it these days, don't be a scum bag, pay your taxes.
     
  16. squid

    squid Karting
    Silver Subscribed

    Oct 5, 2006
    118
    Going through this right now, AAA is telling me I can't register my car through them because I bought it from a dealer (out of state)?

    Does this really mean I have to go to the DMV? That's going to take all day!
     
  17. TheMayor

    TheMayor Nine Time F1 World Champ
    Rossa Subscribed

    Feb 11, 2008
    98,534
    Vegas baby
    IMO just tell your friend if he can afford the car he / she bought, he / she can afford the taxes for it.

    /END
     
  18. GogglesPisano

    GogglesPisano Formula 3
    Silver Subscribed

    Sep 13, 2022
    1,350
    East Bay, California
    Full Name:
    Joe
    That is correct. Same thing happened to me, same situation. Pro tip though, you can go to ANY DMV office. Pick a small town somewhere that isn't swamped or go during the work week mid morning. Went to mine on a Tuesday morning and it was empty. Don't use the appointment system to signify how busy they are. Just make sure you have your papers in order and it will be a breeze.
     

Share This Page