is it possible to buy a M3 from an owner to avoid the california sales tax?

[osteome]

I am sure that your student visa is not dependent on conforming with US laws.....f*ck 'em, what could happen?

[surlynkid]

Originally Posted by DCC

OP, in Texas, the sales tax is defined as a 'transaction tax' and it is applicable to any transaction involving money (even selling a TV between friends).
When a seller fails to list a selling price on the 'Bill of Sale' for your purchase, he is leaving it up to you to declare the proper transaction price that occured. Some choose to stretch that truth alittle to their advantage. In recent years, Texas has come up with a method where they automatically slap a market value on each vehicle sale based on year/mileage/model etc. You are then required to pay at least that amount of sales tax to the State...
So to answer your question, no you cannot avoid paying sales tax for your purchase even if the seller marks it a gift, because even marked as a gift, any gift larger than $10K/Yr is reportable as income to the IRS...and subject to Federal Taxation.

$12K/year now.

[Longboarder]

California is a sales and USE tax state. You are taxed on the use of the vehicle when you register it with the DMV from a private sale. If you buy/register in a state with no sales tax, like Oregon (for example), then you will be ok however if you get pulled over, you also need an Oregon driver license or you will be reported,

[Everfly]

Alrite let say all you guys picking on this guys about cheating the tax system. Let me ask one quick question here and hope all you guys American can give me straight answer. First of all I am not American
So when you buy new car you pay sale tax so tax already pay for that car? Correct?
Then if you move to different state and register then they still make you pay sale tax on the car you already owned and already paid tax for it?
So all you American people tell me what kind of tax system is that?
I have no glue how American people deal with that tax system

[M3PO]

Originally Posted by Everfly

Alrite let say all you guys picking on this guys about cheating the tax system. Let me ask one quick question here and hope all you guys American can give me straight answer. First of all I am not American
So when you buy new car you pay sale tax so tax already pay for that car? Correct?
Then if you move to different state and register then they still make you pay sale tax on the car you already owned and already paid tax for it?
So all you American people tell me what kind of tax system is that?
I have no glue how American people deal with that tax system

That's not how it works. I bought my previous 350Z in Utah and registered it in Oregon where there is no sales tax. I didn't pay any sales tax. I then moved to California and STILL didn't pay any sales tax.

[Everfly]

Originally Posted by Longboarder

California is a sales and USE tax state. You are taxed on the use of the vehicle when you register it with the DMV from a private sale. If you buy/register in a state with no sales tax, like Oregon (for example), then you will be ok however if you get pulled over, you also need an Oregon driver license or you will be reported,

Isn't this call cheat the system as well. So tell me what is the different between someone do this and the OP try to get away with sale tax

[Everfly]

Originally Posted by M3PO

That's not how it works. I bought my previous 350Z in Utah and registered it in Oregon where there is no sales tax. I didn't pay any sales tax. I then moved to California and STILL didn't pay any sales tax.

I don't know how you did it but last time I tried to register my CA plate SLK to NC and they still make me pay sale tax.
Another question hope American people can explain to me better
So I leased a car in NC for my business, so technically I don't owned the car, why I have to pay property tax on the car I just leased. How is the tax system work?

[mdosu]

Originally Posted by Everfly

Another question hope American people can explain to me better
So I leased a car in NC for my business, so technically I don't owned the car, why I have to pay property tax on the car I just leased. How is the tax system work?

It's a local property tax, not sales tax related. Local cities/counties can tax your property any way they want it regardless of ownership. Here in Arlington Virginia, any car deemed to be garaged here overnight will have to pay an annual property tax. They dont' care if it's owned, leased, business, student owned, if you garage it for more than X days, legally, you owe them a tax.

[mdosu]

Originally Posted by Longboarder

California is a sales and USE tax state. You are taxed on the use of the vehicle when you register it with the DMV from a private sale. If you buy/register in a state with no sales tax, like Oregon (for example), then you will be ok however if you get pulled over, you also need an Oregon driver license or you will be reported,

+1

OP might I add, makes sure your insurance is covered for California too. If say you register the car in Oregon, don't pay a tax, hold a Oregon license, but also purchase Oregon insurance, you will be in BIG trouble if you get in an accident in CA. Your insurance company will find out your car is not based in your Oregon locality, and deny you coverage on the basis of insurance fraud. The idea is that people will do this to take advantage of differences in insurance rates of different locations. Yes, insurance rates differ greatly even in the same metro area. Additionlly, states differ in minimum coverage policies.

In short, i suggest pay the CA tax, register the car in CA, and buy CA insurance. Another issue you'll run into in some CA metro areas is parking. If you have out of state plate and local parking enforcement notices your car there for more than 30 days, they will ticket you and report you as not having registered your car in CA. Additionally, certain cities and counties and can also come after you for unpaid property taxes if there is a car tax. You DO NOT want a tax claim put on you , considering you're a foreign national, it can be grounds for deportation. Since 9/11, the reasons to deport foreigners are more lax for federal authorities to carry out deportations.

[mdosu]

Originally Posted by roastbeef

oh, awesome. a non-us citizen taking advantage of the american system and actively asking how to illegally dodge taxes.

thanks a lot, you're why this state is broke. now go home.

seriously, at the end of the day, I think we all agree. We the federal, state, and local tax payers are subsidizing foreign nationals like this actively trying to dodge taxes while using public services we all pay for.

There is no FREE LUNCH here anymore!

[Everfly]

Originally Posted by mdosu

seriously, at the end of the day, I think we all agree. We the federal, state, and local tax payers are subsidizing foreign nationals like this actively trying to dodge taxes while using public services we all pay for.

There is no FREE LUNCH here anymore!

You buy food you pay tax, you go to movie you pay tax. Where all the tax dollars go? Foreign student works pay tax, who get the social security? Do they benefit anything from welfare system? Do they get unemployment when they get laid off?

[Everfly]

Let me ask all of you in this forum complaining about this guy not paying tax on the used car he about to buy. Calling cheater lier or whatever
Let say you sell some parts on this forum or Craigslist, did you report that to IRS? Did the buyers pay sale tax? Isn't that make all of us cheat the tax system?

Cheers
Btw he did not ask is it legal or illegal to cheat the tax system and all you guys tried to educated him about how the tax system work? Stop being a cry baby. Look at where all your tax dollars go? War? Welfare? What else? Educate me now.

[tibra1]

Whats the difference?..Foreigners own this country anyways ..just look at our trade deficit..

still tho..this F@Kin guy dodging his taxes makes me mad

[Everfly]

Originally Posted by tibra1

Whats the difference?..Foreigners own this country anyways ..just look at our trade deficit..

still tho..this F@Kin guy dodging his taxes makes me mad

You are right about foreigners own this country. Soon this country will become china territory cause we cant pay off the debt. I don't see future for next generation

[Everfly]

To all of people in this forum who saying things about doing the illegal things are wrong. I bet more than half of you guys doing illegal thing in your life. We all do know it wrong and we still do it.
Buying alcohol, cigarette or drinking smoking under age is still illegal
Running cattless on the street is still illegal
Using fake Id is illegal
Dating younger girl is illegal
Selling used parts on forum without report to IRS is still not legal
The list go on & on
For me if you did something wrong or illegal then it all call cheat the system and not being a good citizens.
We are all no GOD, we all do stupid and illegal things and we should not be complaining
I am not agree with the way he try to do, also I am not agree with people try to stomp he and educate what's legal or not legal in this country and also people who complaining about he using our service for free, technically everybody in this country paying for all the service they use.
We all liers and cheaters even our president so suck it up and move on

[urBan_dK]

Originally Posted by Everfly

To all of people in this forum who saying things about doing the illegal things are wrong. I bet more than half of you guys doing illegal thing in your life. We all do know it wrong and we still do it.
Buying alcohol, cigarette or drinking smoking under age is still illegal
Running cattless on the street is still illegal
Using fake Id is illegal
Dating younger girl is illegal
Selling used parts on forum without report to IRS is still not legal
The list go on & on
For me if you did something wrong or illegal then it all call cheat the system and not being a good citizens.
We are all no GOD, we all do stupid and illegal things and we should not be complaining
I am not agree with the way he try to do, also I am not agree with people try to stomp he and educate what's legal or not legal in this country and also people who complaining about he using our service for free, technically everybody in this country paying for all the service they use.
We all liers and cheaters even our president so suck it up and move on

Way to invoke a logical fallacy for your argument.

Even if the people complaining are hypocrites, it doesn't make their arguments invalid.

[tibra1]

Originally Posted by urBan_dK

Way to invoke a logical fallacy for your argument.

Even if the people complaining are hypocrites, it doesn't make their arguments invalid.

Sort of like "two wrongs dont make a right".."do as I say not as I do"..that kinda of thing

I can dig it..

[M3PO]

Originally Posted by Everfly

Let me ask all of you in this forum complaining about this guy not paying tax on the used car he about to buy. Calling cheater lier or whatever
Let say you sell some parts on this forum or Craigslist, did you report that to IRS? Did the buyers pay sale tax? Isn't that make all of us cheat the tax system?

Cheers
Btw he did not ask is it legal or illegal to cheat the tax system and all you guys tried to educated him about how the tax system work? Stop being a cry baby. Look at where all your tax dollars go? War? Welfare? What else? Educate me now.

No. If you sell a used car and take a loss, you don't pay taxes on the "income". The same would be true of selling used parts. If it was even remotely the same as buying/selling a car, which it's not. Your example isn't valid.

[urBan_dK]

Originally Posted by M3PO

No. If you sell a used car and take a loss, you don't pay taxes on the "income". The same would be true of selling used parts. If it was even remotely the same as buying/selling a car, which it's not. Your example isn't valid.

Also, this is conflating state and federal taxes. The issue at hand is state taxes.

[mdosu]

at the end of the day, all I'm saying is,

1. A foreign national student who can afford a $40k car shouldn't sweat the $2k sales tax. If you can afford to come here as an international student and buy a $40k car, you're not exactly poor... don't bitch to the citizens who are subsiding the highways you're driving on.

2. All the ideas of registering in Oregon, dodging CA tax, Oregon insurance opens you up to a few federal and state level fraud charges. As a foreigner it'll certainly open you up to deportation if the feds want to pursue it. BTW to lie to the State of Oregon regarding residency to obtain an Oregon license is a FEDERAL CRIME. They've been cracking down on that since 9/11

[mdosu]

Originally Posted by Everfly

You buy food you pay tax, you go to movie you pay tax. Where all the tax dollars go? Foreign student works pay tax, who get the social security? Do they benefit anything from welfare system? Do they get unemployment when they get laid off?

welcome to this country. The founding of the country is partly based on taxation and representation. If citizens don't like the taxes, they vote it out. You seriously don't see where the tax goes? When you call the police over b/c someone is robbing you, you don't have to give the police a box of cigerttes, when you drive on the highway and 99% of the roads out there, there are no tolls every 3 miles. When you only pay $10 a month for your electricity bill and wonder why running your water heater, fridge, PC, and your xbox for hours on end only cost so little....need I say more?

Consumption and income tax is not a new concept to 95% of the world. Btw, as a foreign national, your federal income tax could be credited if you file an income tax in your home country (foreign tax credit).

Consumption tax, where do you go without having to pay a consumption tax (VAT), and don't say Somalia.

[mdosu]

Originally Posted by Everfly

So when you buy new car you pay sale tax so tax already pay for that car? Correct?
Then if you move to different state and register then they still make you pay sale tax on the car you already owned and already paid tax for it?
So all you American people tell me what kind of tax system is that?
I have no glue how American people deal with that tax system

you just didn't read the rules correctly if this happened to you. Most states won't make you pay the sales tax the 2nd time if you've held a title in the previous state for more than 6 months. Yeah, if you bought a car, registered it in New York, then 1 month later registers in the North Carolina, NY and NC will likely charge you a sales tax. NC has no way to know that you didn't do that just to dodge their sales tax. Rules on state taxes vary dramatically, you need to read the law on the DMV websites.