Car bought in FL - Power of Atty. given to CA driver - CA tax owed? Y/N? (sales)

[txdeployer]

Hello,

I'll cut to the chase:

SITUATION: I bought a new car in Florida the other day. I am about to go to work in Afghanistan for 1 year. I need my sister, who lives in CA, to take care of it in my absence. I want to give her Special Power of Attorney (& of course add her to my insurance) to take care of my car and drive it if she needs to.

Question: Being that the car is purchased and registered in FL, will I need to pay CA state taxes upon giving her POA?

Thank you for any helpful responses!!

[cb73]

If it's registered to you in Florida, and it's in California for a year, I don't see why tax would be due in California. Tax is generally due when a California resident purchases a car--I'm assuming you're a Florida resident?

The correct answer would be from the Board of Equalization Use Tax Division.

[ferretkona]

Originally Posted by txdeployer

Question: Being that the car is purchased and registered in FL, will I need to pay CA state taxes upon giving her POA?

If the car is in CA the taxes will be owed.

[bouncethelight]

Sounds complicated! Are you planning to register it in California?

Here's a link to the requirements, and some key points...

Anyone who brings a vehicle into California, or purchases a nonresident vehicle while in California, should be aware of the registration requirements.

So all you have to do is "bring" it into California, to trigger the registration requirements.

Fees must be paid within 20 days of entry or residency to avoid penalties.

Once again, just entering the state triggers the requirements.

Nonresidents whose vehicles are properly registered to them in their home state or jurisdiction may operate their vehicles in California until they:

Accept gainful employment in California.
Claim a homeowner's exemption in California.
Rent or lease a residence in California.
Intend to live or be located here on a permanent basis (for example, acquire a California driver license, acquire other licenses not ordinarily extended to a nonresident, registered to vote).
Enroll in an institution of higher learning as a California resident or enroll their dependents in school (K-12).

But she's not a nonresident, so that wouldn't necessarily apply to her - if she's driving the car - and if you're gone for a year?

I would ask her to go down to the DMV and talk to them directly, since your situation is a little different than the norm. Either that, or I would tell her to just leave the car in the garage, and just start it up occasionally. If she gets pulled over in it, and they ticket her, then you might be required to officially register it in California - and pay the sales tax on it.

[BeauCharles]

Vehicle Information for Military Personnel in California

I think you may be O.K. being you're a non-resident in the military. Definitely check with the DMV though.