Car Tax Doubles | FerrariChat

Car Tax Doubles

Discussion in 'California (Southern)' started by JBTC F430, Apr 4, 2009.

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  1. JBTC F430

    JBTC F430 Karting

    Dec 31, 2006
    58
    Scottsdale, Arizona
    Full Name:
    John Campbell
    One of the tax increases that went through as part of this new budget deal in California was a nearly doubling of the car tax (VLF). The new increased bills are going out now. I just got one on one of my F-cars and the amount is a stunner. Has anyone registered their car in Montana or someplace else with a lower tax? Or has anyone put their vintage Ferrari on "historic plates" which I know limit how much you can drive it? Or maybe you can appeal that the value has gone down and so should the tax like on real estate. I've even considered just taking a car off the road for a year and storing it to avoid a year's worth of this tax.

    Any thoughts or ideas?
     
  2. bobafett

    bobafett F1 Veteran

    Sep 28, 2002
    9,193
    They will be cracking down SEVERELY on out of state plates. CHP has been already. Oregon is long gone, but Montana, etc. are all going to fall to the wayside as well.

    Even if you store it you technically have to put it on a PNO.

    It's a particularly good time if you have a CA legal means of avoiding sales, use & registration taxes... ahem...
     
  3. F1 MONZA

    F1 MONZA Formula Junior

    Sep 6, 2004
    483
    California
    Full Name:
    John
    Me Too why pay so much money to the government. Just throwing money out the window. You can kick a a bull so many times before it turns on you. yes I my self will be signing off not to drive my f car . Lets see what happens or how much more taxes increases will pile on us.. The Us Government is one tough unfair criminal. Our Government fights crime and arrest the bad guys.

    The People should take a rise and fight to over throw or crummy worthless Government. We fight the World. One day the World will turn and fight the US.. That day will come I hope all well be nothing left of every Law makers Judges, Senators and Governors ..
    Then just maybe the people will re take some powers back. How much more can we take of our Government. For how much longer. You can hit a child till his skin falls off then what. This is the exact thing our US Government is doing the exact thing to all of us. Lets see how much more tolerance we have before we break and fight back. Sorry to say this; The Us Government is one dirty lying Government in all the World. Worst then the K.G.B and Yes Hiltlers army.
    john
     
  4. paul baron

    paul baron Karting

    Mar 3, 2009
    156
    south florida
    you lost all credibility with your LAST sentence...
     
  5. Bullfighter

    Bullfighter Two Time F1 World Champ
    Lifetime Rossa Owner

    Jan 26, 2005
    22,596
    Gates Mills, Ohio
    Full Name:
    Jon
    An F430 won't be historic for 20-25 years. My 328 still has three years to go.

    I'm looking into the Montana LLC option as a legal way of handling this.

    As far as a reassessment of value, that would be a good question to ask the DMV. They use some formula that gradually reduces the value from new each year. I have a feeling the law would have to be changed.
     
  6. 3forty8

    3forty8 F1 Rookie
    Owner

    Apr 25, 2006
    2,713
    San Diego
    Full Name:
    Eric
    This from the DMV website:

    Um - no. That is not a half percent increase in registration fees, that is a 77% increase.
     
  7. bobafett

    bobafett F1 Veteran

    Sep 28, 2002
    9,193
    CHP is cracking down heavily on the montana plate. technically this is illegal (running the plates)
     
  8. spdrcr

    spdrcr Formula Junior

    Aug 2, 2004
    318
    San Jose, CA
    Full Name:
    Matt
    Um - yes. An increase from 0.65 percent to 1.15 percent is, in fact, 0.5 percent.

    They aren't talking about the ratio of the increase, just the amount of the increase.


    Ironic though, as this is the exact reason Grey Davis was ousted and Arnold was brought in. (Removal of the VLF offset)

    The more things change the more things stay the same.
     
  9. 3forty8

    3forty8 F1 Rookie
    Owner

    Apr 25, 2006
    2,713
    San Diego
    Full Name:
    Eric
    Yes, of course it is a 0.5% increase in the rate and DMV words it to make it sound like it is a 0.5% ratio increase, that is my point. "Well it's only going up half a percent, that isn't much."
     
  10. GCalo

    GCalo F1 Veteran

    Sep 15, 2004
    7,645
    Northern California
    Full Name:
    Greg Calo
    #10 GCalo, Apr 6, 2009
    Last edited: Apr 6, 2009
    Have to be very careful with out of state registrations. It's a steep fine.

    In the early 90's when the economy was bad I saw CHP driving through BART parking lots ticketing cars w/out of state plates.

    At that time it was a $500 fine. I am sure now it's more than 2X's that.

    Montana LLC's are possible but are usually done with older, very high value Ferrari's.

    Here's the applicable VC section but I have not yet found the fine for violation:

    Use of Foreign License Plates: Limitation
    6700. (a) Except as provided in Section 6700.2, the owner of any vehicle of a type otherwise subject to registration under this code, other than a commercial vehicle registered in a foreign jurisdiction, may operate the vehicle in this state until gainful employment is accepted in this state or until residency is established in this state, whichever occurs first, if the vehicle displays valid license plates and has a valid registration issued to the owner, and the owner was a resident of that state at the time of issuance. Application to register the vehicle shall be made within 20 days after gainful employment is accepted in this state or residency is established in this state.

    (b) A nonresident owner of a vehicle, otherwise exempt from registration pursuant to this section or Section 6700.2, may operate or permit operation of the vehicle in this state without registering the vehicle in this state if the vehicle is registered in the place of residence of the owner and displays upon it valid license plates issued by that place. This exemption does not apply if the nonresident owner rents, leases, lends, or otherwise furnishes the vehicle to a California resident for regular use on the highways of this state, as defined in subdivision (b) of Section 4000.4.

    (c) Any resident who operates upon a highway of this state a vehicle owned by a nonresident who furnished the vehicle to the resident operator for his or her regular use within this state, as defined in subdivision (b) of Section 4000.4, shall cause the vehicle to be registered in California within 20 days after its first operation within this state by the resident.

    Amended Sec. 30, Ch. 594, Stats. 2003. Effective January 1, 2004.
     
  11. frefan

    frefan F1 Veteran

    Apr 21, 2004
    7,370
    There are plenty of threads about avoiding CA reg fees. Cliff notes for the search impaired: You will be targeted (better not get pulled over for any reason), you can fight it but you wont get away with it if you are a CA resident (regardless of your out-of-state LLC company car etc), the fine is steep; I don't recall the percentage but its enough that if you get caught you'll probably never do it again. risk/reward is not good
     
  12. bobafett

    bobafett F1 Veteran

    Sep 28, 2002
    9,193
    There are very few ways of doing this, and you want them to be Cali DMV/BoE legal. I know of only one truly bulletproof manner.
     
  13. JSL

    JSL Formula 3

    Jan 5, 2002
    2,212
    California
    Full Name:
    J.S. Leonard
    Just got my renewal for the 97 F355. $799! This stinks!
     
  14. norcal2

    norcal2 F1 Veteran

    I paid my tags in Feb and they went up 3% already, im going to register my car at my nevada property, but CA has a rule that says the vehicle has to be there 6 months of the year, as it cannot be at your primary residence for more than 6 months....and I dont know if the BOE law was rescinded that allowed you to keep a purchased vehicle out of state for the first 90 days and you did not owe sales tax...
     
  15. SrfCity

    SrfCity F1 World Champ

    For out of state plater's, when the cops pull you over they'll want to see where you have the car insured. If it shows a CA address then be prepared to pay up. If it shows an out of state address then there's not much they can do as you may very well be visiting or whatever excuse you might have for driving the car here.
     
  16. Alex Rogo

    Alex Rogo Formula Junior

    Jan 2, 2004
    273
    California
    Several years ago I worked w/ a guy who drove his F-car to work on a regular basis. The company was a mid-sized manufacturer in CA w/ a parking lot large enough for ~3000 employees. This guy would park on the fringes of the lot to avoid door dings, etc. All was good until a rent-a-cop who provided lot security began noticing the Nevada plates every day and ratted him out to DMV. So, buyer beware.

    Cheers
     
  17. frefan

    frefan F1 Veteran

    Apr 21, 2004
    7,370
    The problem you will have is if/when you get pulled over is having a CA drivers license with NV tags. That is because CA requires all residents to register their car in CA. They can do this because you can only be considered a resident of a 1 state at a time, and you cannot have 2 active drivers licenses at one time. So if you reverse the situation (ie you are pulled over in NV with CA plates and a CA license), there is no problem of course because you are a CA resident. However if I get pulled over with a NV license with CA plates (and vice-versa), that is a ticket. I'm not sure what rule you are referring to but iirc simply having property in another state does not get you anything (or we would all register our cars in Oregon).

    There are other ways like bobafett said, things like getting a dealers license, may be worth it for big ticket items like Enzo's, etc.
     
  18. norcal2

    norcal2 F1 Veteran

    #18 norcal2, Apr 7, 2009
    Last edited: Apr 7, 2009
    "I'm not sure what rule you are referring to but iirc simply having property in another state does not get you anything (or we would all register our cars in Oregon)."
    Not true, each state is different...I already posted the 6 month rule for CA....I have properties in other states and countries with vehicles registered to me at the properties, never had a problem.
     
  19. GCalo

    GCalo F1 Veteran

    Sep 15, 2004
    7,645
    Northern California
    Full Name:
    Greg Calo
    There is a difference in the terms resident and domicilliary.

    You can be a resident of many states but a domicilliary of only one. Domicile is usually determined by where you vote, live mosty, and sometimes work.

    In reality there are few ways to avoid the VLF w/o causing considerable problems for one's self.

    As stated, it can be a costly mistake, and I have yet to find the actual fine.

    For example, no front plate was $25.00. It became $40.00 Jan 1. It's $100 in SF.

    The fines are escalating.

    It's best to just pay the amount and be done with it.
     
  20. frefan

    frefan F1 Veteran

    Apr 21, 2004
    7,370
    #20 frefan, Apr 7, 2009
    Last edited: Apr 7, 2009
  21. GCalo

    GCalo F1 Veteran

    Sep 15, 2004
    7,645
    Northern California
    Full Name:
    Greg Calo
    It is my understanding the 6 month rule has been abrogated.

    No longer viable.

    I'll find the law.
     
  22. norcal2

    norcal2 F1 Veteran

    "It is my understanding the 6 month rule has been abrogated.

    No longer viable.

    I'll find the law. "
    I had a ticket a few years ago and went to court, and won, last LEO I spoke to said the rule was still in place...if it has changed, please post the link...do you know If the BOE law has changed also regarding the 90 day out of state sales tax relief?
     
  23. GCalo

    GCalo F1 Veteran

    Sep 15, 2004
    7,645
    Northern California
    Full Name:
    Greg Calo
    I am checking both. The BOE reg is definitely dead and I was told the CHP rule is as well.

    Both are now 12 months and I will find the law when I get a chance today.

    All came about due to Nevada, Oregon, and Montana supposed exclusions.
     
  24. bobafett

    bobafett F1 Veteran

    Sep 28, 2002
    9,193
    The 90 day law has changed to 1 year (has been for some time).

    frefan is right: out of state plates with a domestic license = no good.

    Further, dealer plates won't cut it anymore. You really need an alternative.
     
  25. GCalo

    GCalo F1 Veteran

    Sep 15, 2004
    7,645
    Northern California
    Full Name:
    Greg Calo
    The least expensive, least troublesome avenue is to just pay the VLF.

    Consider it a cost of doing business.
     

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