U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > U.S. Forums > California
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
 
 
Old 03-23-2011, 10:47 PM
 
4 posts, read 43,399 times
Reputation: 13

Advertisements

I'm moving down to Cali and going to buy a new car.
Noticed the tax rate in some countys are ~10% and others are 8%.

Is it legit if prior to having a permanant residence, that I choose to register/insure/etc to a residence in a low tax county and subsequently do a change of address to a higher tax one? Does the DMV bill you the tax difference if you do this within a certain time period?

If this will be a big red flag then not worth it. Otherwise, seems like a tax efficient strategy to select a initial city/county with a lower tax rate prior to having a permanant residency (even if I live there for a day)
Quick reply to this message

 
Old 03-23-2011, 11:41 PM
 
Location: Carmichael, CA
2,036 posts, read 3,150,912 times
Reputation: 3305
Did you ever stop to think that maybe the taxes wouldn't be so high if so many people weren't actively looking for ways to cheat and not pay them?
Quick reply to this message
 
Old 03-24-2011, 12:00 AM
 
4 posts, read 43,399 times
Reputation: 13
then we wouldn't all need to hire accountants to minimize taxes
Quick reply to this message
 
Old 03-24-2011, 12:18 AM
 
11,715 posts, read 36,339,299 times
Reputation: 7514
Quote:
Originally Posted by cb73 View Post
Did you ever stop to think that maybe the taxes wouldn't be so high if so many people weren't actively looking for ways to cheat and not pay them?
Did you ever stop to think that maybe so many people wouldn't actively look for ways to cheat and not pay taxes if they weren't so high?
Quick reply to this message
 
Old 03-24-2011, 12:36 AM
 
2,311 posts, read 2,921,901 times
Reputation: 1222
Quote:
Originally Posted by EscapeCalifornia View Post
Did you ever stop to think that maybe so many people wouldn't actively look for ways to cheat and not pay taxes if they weren't so high?

I touched on this in an earlier post.. Amazing people don't get this ... I have been doing it since i got here. When I moved (bought car within 1 year of coming here) .. I got creative and avoided the tax difference penalty. I have been avoiding all sorts of taxes since.... When taxes are too high and excessive people find ways to avoid them and limit the taxation to a fair level .. Several studies have been conducted to show this .. Thus, hilariously, such idiotic attempts to extort money from people usually end up in even LESS tax revenue as it creates black markets, cheaters, and people who seek loopholes.

As for the op's question.... Are you referring to having to pay the difference in sales tax if you try to register a car in CA that you bought in another state within 1 year of buying it? Just so you're aware, aside from random fees (on top of the sales tax difference), you are going to have to pay 1.25% of your cars value (every year) to register it. This may change come July 1st (pending votes) back down to 0.625% ....

You could save a chunk of change (depending how expensive the car is) too by waiting until then (if you can) to register the car.

I personally avoided the tax difference fee (not having to register my car until a year went past) and have decided never to buy a new car while I reside in this state (was eyeing a 40k 335i) due to the extortionist taxes on such a purchase. But that's just me.

Wont give you advice on 'borderline' loopholes... but make sure to use 'google'. There are several strategies that fit your situation for minimizing your tax obligation.
Quick reply to this message
 
Old 03-24-2011, 09:33 AM
 
4 posts, read 43,399 times
Reputation: 13
nice good to know. I'll hold off until July.

I basically want to pay the 8.25% sales tax in a nearby county instead of 10% in say Los Angeles. Given I'll be buying the car prior to moving to California, I figured there is wiggle room on where the initially register - unless the DMV will want the difference back
Quick reply to this message
 
Old 03-24-2011, 09:49 AM
 
Location: Central Texas
13,720 posts, read 25,906,913 times
Reputation: 9219
Quote:
Originally Posted by cb73 View Post
Did you ever stop to think that maybe the taxes wouldn't be so high if so many people weren't actively looking for ways to cheat and not pay them?
You have it completely wrong. Humans will naturally, over a period of time, try do to what is best for them. Tax policy unfortunately is used and misused to modify behavior.

Policy makers should think a bit harder about the consequences of tax policy.
Quick reply to this message
 
Old 03-24-2011, 02:05 PM
 
2,311 posts, read 2,921,901 times
Reputation: 1222
Quote:
Originally Posted by flyingbyhere View Post
nice good to know. I'll hold off until July.

I basically want to pay the 8.25% sales tax in a nearby county instead of 10% in say Los Angeles. Given I'll be buying the car prior to moving to California, I figured there is wiggle room on where the initially register - unless the DMV will want the difference back
Cheers . Glad I could help. Please ensure to 'google' for the specific
Quick reply to this message
 
Old 03-24-2011, 02:45 PM
 
26,704 posts, read 53,348,033 times
Reputation: 20706
My understanding tax rate is dependant on the county where you reside or where purchased if you are not a resident.

CA has a very specific timeline when it comes vehicle registration and changing driver's license.

The State Board of equalization works with the DMV closely.

In last week's newspaper there was a story detailing how the State automatically cross references data against their tax return when someone buys a car above 40k...

If you want to sleep nights, do it right... the penalties can be costly.

About the only legal way I know to avoid CA DMV requirements applies to active duty military... I believe active duty can keep home state registration as long as they are on active duty.

A friend was pulled over several times because she was driving with out of State Plates and she was employed here... each time she had to show her military ID and explain her spouse was active duty stationed here.
Quick reply to this message
 
Old 03-24-2011, 03:54 PM
 
Location: Columbia, California
6,663 posts, read 26,704,402 times
Reputation: 5101
Quote:
Originally Posted by flyingbyhere View Post
I'm moving down to Cali and going to buy a new car. ,,,,
Cali, Columbia has their own taxes, you will have to talk to the government of Columbia on that issue. You may have problems importing a auto from out of the country


Quote:
Originally Posted by flyingbyhere View Post
,,,- unless the DMV will want the difference back
Yes, they will collect the difference.

So let me get this straight, you have the funds to purchase a new car but are too cheap to pay the correct tax burden. The proper words I want to use here are banned on city data.
Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


 
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Options
X
Data:
Loading data...
Based on 2000-2016 data
Loading data...

123
Hide US histogram

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > U.S. Forums > California
Follow City-Data.com founder on our Forum or

All times are GMT -6.

© 2005-2019, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top