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Old Today, 09:58 AM
 
Location: Copenhagen, Denmark
9,894 posts, read 8,078,238 times
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You should be able to get a tax credit from one of the two states, so you won't be double taxed, but you will end up having to pay an amount equal to the higher of the two taxes in either case.
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Old Today, 12:44 PM
 
Location: Northern panhandle WV
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I don't know about CA but I just bought a car in OH and I live in WV. I got a temp. plate from OH and have 45 days to get the car registered in WV and I pay the sales tax to WV. I do not pay OH tax at all.
Of course I already have an address in WV so the title from OH was sent to me here in WV, I will now have to get a WV title when I do the WV registration in a few days.
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Old Today, 01:21 PM
 
6,244 posts, read 3,359,365 times
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Quote:
Originally Posted by Northern Maine Land Man View Post
Veterans returning from overseas have been doing this for at least 50 years. The Arkansas dealer can have the California dealer do a custody transfer to the Arkansas Dealer. You pick up the truck in California and put Arkansas paper plates on the vehicle. (Put clear packaging tape on the face of the paper plate because you may actually get to drive in rain.) On a long haul, you will be better off to rent a trailer for your compact car. The benefits are no wear on your car's drive train and you can back up with a trailer. You can't back up with a tag-along. Many people find that out the hard way at night. Ooops; I just crunched my car.
Problem is a lack of residency at the end state, which military members would have for their home state. At the time of the transaction he is still a CA resident and thus would owe CA tax.
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Old Today, 01:54 PM
 
25,971 posts, read 50,002,099 times
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Quote:
Originally Posted by ukrkoz View Post
I am missing something.
OP is not buying a vehicle in state B he will be moving to. He is buying vehicle in state A. THERE he is paying sales tax. Car is sold. Done. Dealer then should send LPs to buyer to his new address. In the meantime, buyer is using a temporary, usually 1 month, paper tag.

When buyer is registering vehicle in state B, he is not registering a purchase, he is registering an already sold and taxed vehicle. He should pay registration fee only, no tax. Never heard of same purchase being sales taxed twice.



Otherwise, OP. Why don't you rent a car for your move and then buy new one in state B?
Some states like mine require you own the car for 1 year to avoid paying tax.

Also, I own about 50 vehicles... mostly from 1905 through the 1960's.

I looked into moving to Washington State and soon found I would have to pay tax on most of the collection... these are cars that I have owned for decades in some cases.

Death and Taxes...
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Old Today, 01:57 PM
 
25,971 posts, read 50,002,099 times
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Originally Posted by sunsprit View Post
the process where an AZ resident purchased a vehicle out of state and then had to pay the taxes/fees in their residence state does not apply to your situation.

You cannot establish out of state residency "after the fact" to avoid the CA resident sales tax and licensing fees. When you purchase your new vehicle in CA, you'll be giving the dealership your residency information. At a minimum, you'll need to present your driver's license as proof of your information. If it's a CA license, you're paying CA sales taxes.

My bet is that CA authorities and dealers will be on the alert for any attempts to defraud CA out of their taxes, given that there will no doubt be a huge demand for replacement vehicles now. Bear in mind that at the instant you've got a sales contract, it's a taxable event and CA like other taxing authorities regards the money owed as "their money". It's unlikely that a dealership will want to risk their business license over your legitimately owed taxes.

as well, buying a vehicle from a private party may get some scrutiny at other states DMV's. IOW, if your bill of sale and title sign off says you bought on a certain date, another state may balk at your processing the ownership in their jurisdiction with a license issued after that date. The question of "which state you were a resident in at the time of purchase" can come into play. Some states now require that the paperwork for your purchase, or at least the title sign off be notarized. Buy today, move tomorrow and your dates may catch up with you. Take care.
If the Dealer Screws up the Dealer will eat it...

We had the Franchise Tax Board set up in an office to audit... never found a problem but always looking for unpaid taxes due... the times I transported vehicle to the State Line required explanation... the cars shipped via commercial carrier were not questioned...

In many cases a single sale is thousands of dollars of potential revenue.
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Old Today, 03:41 PM
 
Location: Northern Maine
9,546 posts, read 14,372,215 times
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"At the time of the transaction he is still a CA resident and thus would owe CA tax."

If he buys a vehicle from an Arkansas dealer and puts Arkansas plates on it, he will not owe California a tax. He can use a residence hotel or suite for an address while he serches for a new home. Active duty military and new veterans do this al the time. I did it several times over the years. You may know your new duty station, but you may not know what town your new address will be in before you arrive in the area.


As an afterthought; if Arkansas does vehicle inspections, they may dputize the California dealer to apply an Arkansas inspection sticker on the truck.
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Old Today, 03:45 PM
 
6,244 posts, read 3,359,365 times
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Quote:
Originally Posted by Northern Maine Land Man View Post
"At the time of the transaction he is still a CA resident and thus would owe CA tax."

If he buys a vehicle from an Arkansas dealer and puts Arkansas plates on it, he will not owe California a tax. He can use a residence hotel or suite for an address while he serches for a new home. Active duty military and new veterans do this al the time. I did it several times over the years. You may know your new duty station, but you may not know what town your new address will be in before you arrive in the area.


As an afterthought; if Arkansas does vehicle inspections, they may dputize the California dealer to apply an Arkansas inspection sticker on the truck.
He'd be buying in CA, as a CA resident.
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