Minimize Sales Tax on New Car - Register Different City?

[Ultrarunner]

Heres the one for San Leandro... I imagine the other cities also had ballot measures.

A City of San Leandro Sales Tax Increase, Measure Z was on the November 2, 2010 ballot for voters in the City of San Leandro in Alameda County. It was approved.

The sales tax increase ballot question, if approved, will increase the sales tax paid in the city to 10%.

The vote on the city council to put the sales tax increase on the ballot was 6-1.

[djxpress]

resurrecting thread - buying a new car. San Diego County has an 8% tax rate, but my city La Mesa is 8.75%. If I buy a car in LA, would it be beneficial to register the car to a parent's address in SD that falls in the 8% tax zone versus my residence that is 8.75%?

[2sleepy]

Originally Posted by Jonah K

Some folks avoid that by setting up an entity such as a trust or S corporation in Oregon or Nevada. After that, they purchase a new vehicle as a "trust" or "corporate" asset and register the vehicle in the trust's or corporation's name. As a "trustee" or "corporate officer" of an out-of-state entity, one can legally operate an out-of-state titled and registered vehicle in California.

Nevada charges sales tax on new cars, and the tax rate in Reno is 7.75%, sales tax in Sacramento County is 8%, hardly reason form a corporation to avoid it. Aside from that your insurance rates might significantly change and insurance companies are a little weird about covering a car that is not registered in the state is is being driven.

[2sleepy]

Originally Posted by djxpress

resurrecting thread - buying a new car. San Diego County has an 8% tax rate, but my city La Mesa is 8.75%. If I buy a car in LA, would it be beneficial to register the car to a parent's address in SD that falls in the 8% tax zone versus my residence that is 8.75%?

You need to call your insurance company first and explain what you are doing. They might not like having a client with a driver's license and credit report showing one address and the vehicle being registered at a different address.

[oldtrader]

Remember California has some strict emission laws. Cars sold in California must be specially built to California Standards. If you bring in an out of state vehicle, and it is a new car, unless it is 50 state certified you cannot even license in in California as far as I understand. If a used car, it has to pass the California smog tests. A lot of cars, cost more to pass the smog test than you are trying to save in taxes which is just a few hundred dollars.

Bringing in out of state vehicle into California. What you need to know about buying a car from out of state - SmogTips.com. Moving to California and the smog check. How to register your out of state vehicle in California, smog inspection and insuran

Be smart, buy a New Car in California, pay your taxes, and save the chances you will be caught and have huge fines to pay, or you are unable to register the car.