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Old 06-24-2014, 10:42 PM
 
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I am buying a car from aToyota Dealer in Redlands, California. I will have the car shipped to Houston, TX and Register it here, as this is my place of residence. Do I have to pay the California Tax on the car?
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Old 06-25-2014, 01:27 AM
 
Location: Planet Earth
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Ask the dealer - I'm sure that this isn't the first time this has come up.
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Old 06-25-2014, 08:38 PM
 
506 posts, read 293,831 times
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Why would a topic dealing with Redlands be in the San Jose forum?
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Old 06-25-2014, 11:39 PM
 
Location: Planet Earth
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Why would a topic dealing with Houston, TX be in the San Jose forum?
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Old 06-26-2014, 06:57 PM
 
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Auto sales and dealerships have their own ecosystem of laws and regulations. You'll have better luck asking the fine upstanding employees of the dealership.

I will note that in general, if you buy some random item from out of state and have it shipped to you, you owe a "use tax". The use tax is essentially always equal to the sales tax you would have paid had you bought it from an in-state seller. If they don't levy the use tax on you at the time of sale, you are supposed to pay it yourself, typically at income tax time. (Tax gets paid to the state you had it shipped to.) But like I said, I'll bet car sales have their own funky rules and enforcement.
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Old 06-26-2014, 06:59 PM
 
Location: Texas
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Oh, watch out.

If it comes from California, you will likely have to do the inspection starting year one vs year two.
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Old 06-27-2014, 10:12 AM
 
Location: Mokelumne Hill, CA & El Pescadero, BCS MX.
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Take physical delivery in NV.
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Old 06-27-2014, 02:24 PM
 
Location: Silicon Valley
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This question comes up all the time in some of the automobile forums I frequent. The regulation that applies is this:

Regulation 1620

It's possible that the dealership may not be familiar with this, and not know what rules apply. So the suggestion to talk to the dealership is a good one.

You will only be able to avoid the sales tax by taking delivery outside of CA. So you can ship it all the way to TX, or take delivery just outside of CA and drive it home yourself.

Edit: just reread first post and it says OP is shipping to TX. If the dealership sells to out-of-state buyers, then they are probably familiar with regulation 1620. Here is the applicable portion:

Quote:
(B) Shipments Outside the State—When Sales Tax Does Not Apply. Sales tax does not apply when the property pursuant to the contract of sale, is required to be shipped and is shipped to a point outside this state by the retailer, by means of:

1. Facilities operated by the retailer, or

2. Delivery by the retailer to a carrier, customs broker or forwarding agent, whether hired by the purchaser or not, for shipment to such out-of-state point. As used herein the term "carrier" means a person or firm regularly engaged in the business of transporting for compensation tangible personal property owned by other persons, and includes both common and contract carriers. The term "forwarding agent" means a person or firm regularly engaged in the business of preparing property for shipment or arranging for its shipment. An individual or firm not otherwise so engaged does not become a "carrier" or "forwarding agent" within the meaning of this regulation simply by being designated by a purchaser to receive and ship goods to a point outside this state. (This subsection is effective on and after September 19, 1970, with respect to deliveries in California to carriers, etc., hired by the purchasers for shipment to points outside this state that are not in another state or foreign country, e.g., to points in the Pacific Ocean.)
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Old 06-27-2014, 02:27 PM
 
158 posts, read 333,603 times
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Quote:
Originally Posted by MediocreButArrogant View Post
This question comes up all the time in some of the automobile forums I frequent. The regulation that applies is this:

Regulation 1620

It's possible that the dealership may not be familiar with this, and not know what rules apply. So the suggestion to talk to the dealership is a good one.

You will only be able to avoid the sales tax by taking delivery outside of CA. So you can ship it all the way to TX, or take delivery just outside of CA and drive it home yourself.
I don't suppose that would work if you're a California resident...?
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Old 06-27-2014, 02:33 PM
 
Location: Silicon Valley
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Quote:
Originally Posted by Zeya View Post
I don't suppose that would work if you're a California resident...?
You would end up paying a use tax at time of registration equal to the sales tax, so you've saved nothing.

The car would have to remain outside CA for some period, and possibly be registered outside of CA as well, before it is brought into CA in order to avoid paying the use tax at the time the car is first registered in CA. I don't recall the actual rules off the top of my head, but they can be found online easily.

Edit: Found it: http://www.boe.ca.gov/pdf/pub52.pdf

Basically, the rule is you are exempt from the use tax only if 12 months or more elapse between date of purchase and the time the vehicle is brought into CA if you are a CA resident, and 90 days if you're not a CA resident. See the publication for more details

Last edited by MediocreButArrogant; 06-27-2014 at 02:54 PM..
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