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Old 12-29-2014, 11:36 AM
 
268 posts, read 1,129,464 times
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Hello everyone,
I have already asked this question in San Diego forum but figured out that I might get some more information here as it's not related to a particular California city. I was wondering, if any of you had to deal with the same thing what I'm about to face soon.

We are moving to San Diego, CA (La Mesa actually, 91942 zip code) from Texas in early January. We also bought a car recently. I heard that if I move my new car to CA (which is 4 months old), I have to pay sales tax(Sales Tax in CA - Sales Tax in TX ~ 3%) again. I already did some search on this forum and found a lot of different information. I saw there is a rule for 120 days, I also saw 49-state thing. So, I'm just wondering, which one is more accurate and updated? Most of those posts were old, so any recent information would be very helpful.

- Is there any way I can reduce this sales tax once I move to California? Looks like I need to play close to $2500
- Like some other states, Texas also has tax credit when buying a new car with trade-in. I meant to say, if my new car price is $38K and the trade-in value was $20K, then I have to pay sales tax only for the remaining balance, which is $18K. I did that already in August. But I think California don't follow it. So in case if I have to pay tax, which portion of the price will be considered for sales tax?

I bought my car in August 18, 2014 and its currently registered in Texas and have a TX license plate. On DMV site Buying a Vehicle From Out of State - Can You Register it in California? FFVR 29, there is a section related to 49-state rule:

Quote:
Does This Apply to Someone Moving to California?

If you are moving to California from another state, you may register a new 49-state vehicle if it was first registered by you in your home state, or for military personnel, in the last state of your military service. When applying for vehicle registration in California, you must provide evidence that the vehicle was registered.
Does this apply to me? I also found this FAQ - Use Tax Exemptions or Exclusions - Board of Equalization

Quote:
Interstate and Foreign Commerce
Purchases of property that are both first functionally used outside the state of California and are used continuously in interstate or foreign commerce (both within and outside California), and not exclusively in California, are exempt from the use tax. For example, a purchase of a ferry boat to transport passengers between Los Angeles and Catalina Island (two California ports) does not qualify for the exemption, even though the vessel may travel through international waters to arrive at its destination. However, the purchase of an aircraft regularly used in transporting passengers from Mexico to Canada may be exempt, even if it stops at various airports in California to pick up additional passengers. For more information see Regulation 1620, Interstate and Foreign Commerce.

Alternatively, under the 12-month test, vehicles, vessels, and aircraft first functionally used outside California will not be regarded as purchased for use in this state if the vehicle, vessel, or aircraft is brought into California within 12 months after its purchase and one-half or more of the miles traveled by the vehicle, or nautical miles traveled by the vessel, or flight time traveled by the aircraft during the six-month period immediately following its entry into this state are miles/nautical miles/flight time in interstate or foreign commerce. See the page outlining the 12-month test provisions for specific requirements. You may also see publication 110, Purchases from Out-of-State Vendors.
I also tried with this calculator https://www.dmv.ca.gov/FeeCalculator...esidentForm.do but the calculator doesn't go with what I heard on this forum (49 state or 120 days rule)
Did any of you recently move to California with a new car and paid this extra sales tax?

I have already used https://www.dmv.ca.gov/FeeCalculator...esidentForm.do but I am not sure what to put in "Acquired/Market Value:" field. The current market price of my car ($35K)? Or the amount I paid after trade-in ($13K)?

If I use original purchase price (before trade-in tax credit), then I get this:



But if I use the taxable car price (after trade-in tax credit), then I get this:



So which one I should expect after I move to CA? Any information would be really helpful.


Thanks in advance.
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Old 12-29-2014, 01:46 PM
 
Location: Carmichael, CA
2,410 posts, read 4,414,937 times
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Lots of questions! First, the sales tax. Yes. Unfortunately, sales (called Use Tax) will be collected on the purchase price, which is generally Line 1 on your sales contract, listed as sales price or purchase price, minus what you've paid to Texas. The 120-day rule regarding payment of sales tax was changed to a 1-year rule because of all the people going to Nevada, buying huge motor homes then paying for them to be stored at the dealership for 120 days to evade the sales tax. California DMV does not have the ability to waive the tax as it is being collected for the Board of Equalization, so it's their rules.

49-state vehicle has to do with Smog. Are you sure your vehicle is a 49-state? It will generally say on the plate under the hood. California will NOT register a 49-state vehicle that enters the state with less than 7500 miles. Most of the manufacturers ensure that vehicles are California-compliant, but check the plate to make sure. If you already have a lot more than 7500 miles, it will be fine.

Please do NOT go to a California DMV in January without an appointment. The new illegal immigrant licensing program starts January 2nd and they are expecting (hoping for) more than a million people to come in for licenses. Go through the DMV website to make an appointment.
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Old 12-30-2014, 10:35 AM
 
Location: Living rent free in your head
42,710 posts, read 25,867,327 times
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California DMV bases the fee on the sale price of the vehicle before trade in or rebates. "If" you decided to drive it with Texas plates for a year and one day you would not be stuck with the surcharge for sales tax it would just be normal registration fees. You would need to keep your Texas insurance on the car though. I am not telling you to break the law that requires California registration within 20 days of establishing residency in the state, and if you were to get caught you would have to pay a fine and register it right away.
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Old 12-30-2014, 03:18 PM
 
Location: Carmichael, CA
2,410 posts, read 4,414,937 times
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Quote:
Originally Posted by 2sleepy View Post
California DMV bases the fee on the sale price of the vehicle before trade in or rebates. "If" you decided to drive it with Texas plates for a year and one day you would not be stuck with the surcharge for sales tax it would just be normal registration fees. You would need to keep your Texas insurance on the car though. I am not telling you to break the law that requires California registration within 20 days of establishing residency in the state, and if you were to get caught you would have to pay a fine and register it right away.
That's very true. But bear in mind the CHP "Cheater's Program" where regular people can go online and turn in out of state drivers for not having California license plates. There are a LOT of people who just love to look for out of state cars to turn in. Power issues or something.
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Old 01-01-2015, 12:24 AM
 
Location: Living rent free in your head
42,710 posts, read 25,867,327 times
Reputation: 33793
Quote:
Originally Posted by cb73 View Post
That's very true. But bear in mind the CHP "Cheater's Program" where regular people can go online and turn in out of state drivers for not having California license plates. There are a LOT of people who just love to look for out of state cars to turn in. Power issues or something.
Yeah I know..it's really sad that some people have so little going on in their lives that they would resort to ratting on their neighbors for having out of state plates, isn't it?
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Old 01-01-2015, 10:41 AM
 
268 posts, read 1,129,464 times
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Thanks a lot everyone. Looks like I need to pay the around $2600
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Old 01-03-2015, 12:32 PM
 
Location: Columbia, California
6,664 posts, read 30,498,023 times
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Quote:
Originally Posted by cb73 View Post
That's very true. But bear in mind the CHP "Cheater's Program" where regular people can go online and turn in out of state drivers for not having California license plates. There are a LOT of people who just love to look for out of state cars to turn in. Power issues or something.
Funny. Your view may rapidly change after your car is involved in a hit and run with a vehicle with out of state plates.
My car was hit, the driver mumbled something and she ran off. Before the police arrived a male ran up and started the car and left the scene. As the plates were out of state the sheriff could not help me. No DMV records shown a new address.
I turn in all vehicles I see with those plates when I see them for months in our area.
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Old 01-05-2015, 12:10 AM
 
Location: San Antonio Texas
11,431 posts, read 18,916,964 times
Reputation: 5224
Quote:
Originally Posted by deadcoder View Post
Thanks a lot everyone. Looks like I need to pay the around $2600
When I came to Calif back in 1991, there was a $300 out of state fee plus registering it on the purchase price. On top of that, the insurance for my zip code was the cost of half months rent!! I just kept the Texas tags, license and ID. WHEN stopped, I would just say I was passing through (if asked). Had I been in a wreck, I still had auto insurance to use because I was paying Texas premiums (which I could afford). After about a year, I bought a new car in Calif. california tags cost much more than other states because fees are based on purchase price rather than weight like in Texas. The longer you keep a car the better, because the tag fee reduces by 10% each succeeding year.
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Old 01-05-2015, 12:15 AM
 
Location: San Antonio Texas
11,431 posts, read 18,916,964 times
Reputation: 5224
Quote:
Originally Posted by ferretkona View Post
Funny. Your view may rapidly change after your car is involved in a hit and run with a vehicle with out of state plates.
My car was hit, the driver mumbled something and she ran off. Before the police arrived a male ran up and started the car and left the scene. As the plates were out of state the sheriff could not help me. No DMV records shown a new address.
I turn in all vehicles I see with those plates when I see them for months in our area.
An out of stater with auto insurance still could have filed a claim. Last I checked, Calif is still part of the U.S. DISHONEST HIT AND RUN FOLKS ARE EVERYWHERE. I don't blame you for being upset, but what does your anger have to do with the person having an out of state tag? I was once hit by an in-stater who had given me his address at the time of the accident. When I phoned him, he said that he would NOT FILE A CLAIM. there was nothing that we could do about it since we didn't have his valid insurance info.
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Old 01-05-2015, 12:39 AM
 
Location: Carmichael, CA
2,410 posts, read 4,414,937 times
Reputation: 4377
Quote:
Originally Posted by ferretkona View Post
Funny. Your view may rapidly change after your car is involved in a hit and run with a vehicle with out of state plates.
My car was hit, the driver mumbled something and she ran off. Before the police arrived a male ran up and started the car and left the scene. As the plates were out of state the sheriff could not help me. No DMV records shown a new address.
I turn in all vehicles I see with those plates when I see them for months in our area.
The sheriff could have still gotten ownership information. Your insurance company also could have ownership information from the other state. Pretty much all insurance companies have investigators who could have tracked the person down to get a judgment against them.
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