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Old 02-15-2012, 11:13 AM
 
35,121 posts, read 39,996,116 times
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Two words: Public Transportation

 
Old 02-15-2012, 11:13 AM
 
653 posts, read 738,332 times
Reputation: 408
Quote:
Originally Posted by Ultrarunner View Post
Oh... California calculates the tax on the full value... so trading in your old car has no bearing on how California calculates the tax due... unlike many States where the tax due is only on the difference.

Remember... California has just about every tax under the sun...

Fabbbulloous. Well, that part screws me! And if it's true, it makes no sense because you already paid tax on the portion of the trade-in that was, well, traded in, when you bought the car you are trading in. So you're essentially getting taxed twice on that portion of the new car. Absolute hogwash.
 
Old 02-15-2012, 11:14 AM
 
653 posts, read 738,332 times
Reputation: 408
Quote:
Originally Posted by CSD610 View Post
Two words: Public Transportation
Good god. At this point. A-MEN!
 
Old 02-15-2012, 11:16 AM
 
653 posts, read 738,332 times
Reputation: 408
Quote:
Originally Posted by Ultrarunner View Post
It's a quirk in the Tax Law... many businesses would lease expensive luxury vehicles because No Sale had taken place... therefore no tax due.

Sales Tax is over 10% in some areas... so the amount of money in not insignificant...
Okay. So if no sale had taken place in his home state, why does he then owe sales tax in CA to transfer the car (he never purchased, only leased) to CA?
 
Old 02-15-2012, 11:22 AM
 
26,579 posts, read 52,055,370 times
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Quote:
Originally Posted by dclamb3 View Post
Fabbbulloous. Well, that part screws me! And if it's true, it makes no sense because you already paid tax on the portion of the trade-in that was, well, traded in, when you bought the car you are trading in. So you're essentially getting taxed twice on that portion of the new car. Absolute hogwash.
Very true... I grew up in and around the car business...

The dealership would sell some cars several times over the years... sold it new and then it would be traded and later it would come back in trade and each time the buyer trading in received no credit towards tax from the trade in.

My hobby is cars... mostly antique.

In my life, I bought one new car and it was bought in Germany and I had it shipped back to California... still have it.

The car had 3400 miles on it and I had owned it 4 months when it entered California... I had to pay tax on the full amount including the cost to ship it...
 
Old 02-15-2012, 11:24 AM
 
26,579 posts, read 52,055,370 times
Reputation: 20358
Quote:
Originally Posted by dclamb3 View Post
Okay. So if no sale had taken place in his home state, why does he then owe sales tax in CA to transfer the car (he never purchased, only leased) to CA?
Legislature viewed leasing as a Tax Loophole used mostly by corporations and voted to close it... at least this is the explanation I was given.

http://www.boe.ca.gov/sutax/faqex.htm#1

http://www.dmv.ca.gov/pubs/brochures/howto/htvr9.htm

http://dmv.ca.gov/vr/vr_info.htm

Last edited by Ultrarunner; 02-15-2012 at 11:45 AM..
 
Old 02-15-2012, 11:48 AM
 
653 posts, read 738,332 times
Reputation: 408
Quote:
Originally Posted by Ultrarunner View Post
Very true... I grew up in and around the car business...

The dealership would sell some cars several times over the years... sold it new and then it would be traded and later it would come back in trade and each time the buyer trading in received no credit towards tax from the trade in.

My hobby is cars... mostly antique.

In my life, I bought one new car and it was bought in Germany and I had it shipped back to California... still have it.

The car had 3400 miles on it and I had owned it 4 months when it entered California... I had to pay tax on the full amount including the cost to ship it...
That's just wrong, on so many levels. You poor thing.
 
Old 02-15-2012, 11:49 AM
 
653 posts, read 738,332 times
Reputation: 408
Quote:
Originally Posted by Ultrarunner View Post
Legislature viewed leasing as a Tax Loophole used mostly by corporations and voted to close it... at least this is the explanation I was given.

FAQ - Use Tax Exemptions or Exclusions - Board of Equalization

How To Register A Vehicle from Out-of-State (Nonresident Vehicle)

Vehicle Registration and Title Information
Well, offfff course they'd want to close that loophole. What a mess. Thanks for the information.
 
Old 02-15-2012, 12:06 PM
 
Location: DFW
6,794 posts, read 11,722,028 times
Reputation: 5144
Quote:
Originally Posted by CSD610 View Post
Two words: Public Transportation
Not gonna happen in Orange County
 
Old 02-15-2012, 12:07 PM
 
11,715 posts, read 35,875,875 times
Reputation: 7510
This is part of the hidden tax burden in CA. I love how people say things like "Sales tax is the same in CA and state X" but don't take into account details like this.
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