sales tax on vehicles bought out of state

bmw_guy_2020 · 02-01-2011, 04:05 PM

I live in TX. If I lease an M3 from a dealer in CA then how does that work with taxes?

I moved back to TX from CA about 1 year ago. I seem to remember that when I moved to CA I had to pay the difference in taxes on my car since I purchased the vehicle in TX.

If sales tax is higher in CA then do I essentially lose that tax advantage? ex - will I have to pay an extra 2% or so in CA taxes? Or will I only pay TX taxes for this?

W12x · 02-01-2011, 06:12 PM

Quote:

Originally Posted by bmw_guy_2020

I live in TX. If I lease an M3 from a dealer in CA then how does that work with taxes?

I moved back to TX from CA about 1 year ago. I seem to remember that when I moved to CA I had to pay the difference in taxes on my car since I purchased the vehicle in TX.

If sales tax is higher in CA then do I essentially lose that tax advantage? ex - will I have to pay an extra 2% or so in CA taxes? Or will I only pay TX taxes for this?

That's a very interesting question, I'd like to know the answer as well since I'm in Houston. And the double tax in Texas is certainly not leaser friendly.

EuroCarsOnline · 02-01-2011, 10:19 PM

Quote:

Originally Posted by bmw_guy_2020

I live in TX. If I lease an M3 from a dealer in CA then how does that work with taxes?

I moved back to TX from CA about 1 year ago. I seem to remember that when I moved to CA I had to pay the difference in taxes on my car since I purchased the vehicle in TX.

If sales tax is higher in CA then do I essentially lose that tax advantage? ex - will I have to pay an extra 2% or so in CA taxes? Or will I only pay TX taxes for this?

You shouldn't have to pay the other state's taxes. You should only pay taxes for the registration address in TX.

Regards,
David

PKL · 02-02-2011, 07:51 AM

You pay taxes where you register the car. This has always been the case. If you buy a car in Florida, and register it in Texas, you pay Texas sales tax. If I buy a car in Michigan and register it in CT I pay CT sales tax.

When has this situation ever changed? Cant believe people still post these threads.

No way to get out of paying your sales tax. Unless your state doesn't have sales tax?

DCC · 02-02-2011, 11:15 AM

I believe that CA has revised sales tax rules that makes buying from CA not a 'simple' process.

navarrojiii · 02-02-2011, 11:45 AM

You can buy your car from CA however it will have to be shipped back to your home by truck otherwise you have to pay CA sales tax. The car cannot touch California soil basically. Then you pay sales tax where you live when you finally get the car. Might not be worth the hassle.

GOLFFRR · 02-02-2011, 11:53 AM

ok guys seems like a little confusion in this thread so maybe i can help you out. first off you pay taxes where you register the vehicle, UNLESS driving the car from CA. The rule is if it touches CA streets you pay CA tax

BBCar · 02-02-2011, 02:42 PM

sorry to hijack the thread, but my question is somewhat related.

what if the car was never fully registered in any state? (i.e. purchased with an out-of-state address & left US soil soon after it was delivered)

I know it's kind of an interesting/unique scenario, but never say NEVER!!

W12x · 02-03-2011, 08:42 PM

Quote:

Originally Posted by GOLFFRR

ok guys seems like a little confusion in this thread so maybe i can help you out. first off you pay taxes where you register the vehicle, UNLESS driving the car from CA. The rule is if it touches CA streets you pay CA tax

GOLFFRR, would it make any differences if one's leasing a car instead of buying one from CA?

GOLFFRR · 02-03-2011, 09:17 PM

It all depends on the situation whether you fly out and pick up the car or if you ship the car. Ill PM you now.

mrkbbd · 02-03-2011, 10:06 PM

What jurisdiction could California possibly have to impose that tax law?

DCC · 02-04-2011, 11:07 AM

Quote:

Originally Posted by mrkbbd

What jurisdiction could California possibly have to impose that tax law?

Arnold said so...

tukluc · 02-04-2011, 03:14 PM

Quote:

Originally Posted by GOLFFRR

It all depends on the situation whether you fly out and pick up the car or if you ship the car. Ill PM you now.

So if I buy a car from CA but live in another state...I have to pay both CA tax + other state tax even though the car will be in CA for one-day as it drives away?

That is ridiculous!

GOLFFRR · 02-04-2011, 03:22 PM

So it depends on what your tax rate for your state is, but if you "drive" the car on CA streets then you have to pay CA taxes, and when you go to reg the car in another state you will only pay the difference between the two states.

say for example CA was higher then another state then you wont get your money refunded but you wont have to pay more. however if CA was less then your state you have to pay the difference when you reg. thats why if your out of state in some situations your better off shipping, courtesy delivery. or PCD when picking up the car. It jsut all depends on the state and the situation.

tukluc · 02-04-2011, 05:21 PM

Got more clarification....

Or you if you are doing an ED, you do the car registration paperwork between the out-of-state dealer and your home state DMV when you get back from Germany.

Since the car takes 6-8 weeks to ship, there is more than enough time to get that out of the way and get your subsequent plates, etc. from the home state DMV. Worse case, your local DMV gives you temp. plates or trip permit while you drive it back.

Unfortunately for us in WA, the tax rate is 9.8% so I DOUBT there is any savings to be had by paying only CA taxes

02-01-2011, 04:05 PM	#1
bmw_guy_2020 Private First Class 30 Rep 182 Posts Drives: Mercedes CLS 550 Join Date: Sep 2010 Location: Dallas, TX iTrader: (0)	sales tax on vehicles bought out of state I live in TX. If I lease an M3 from a dealer in CA then how does that work with taxes? I moved back to TX from CA about 1 year ago. I seem to remember that when I moved to CA I had to pay the difference in taxes on my car since I purchased the vehicle in TX. If sales tax is higher in CA then do I essentially lose that tax advantage? ex - will I have to pay an extra 2% or so in CA taxes? Or will I only pay TX taxes for this?
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02-02-2011, 07:51 AM	#4
PKL Brigadier General 848 Rep 3,274 Posts Drives: 2020 M4, 2022 X6 Join Date: Oct 2008 Location: San Fernando Valley iTrader: (1)	You pay taxes where you register the car. This has always been the case. If you buy a car in Florida, and register it in Texas, you pay Texas sales tax. If I buy a car in Michigan and register it in CT I pay CT sales tax. When has this situation ever changed? Cant believe people still post these threads. No way to get out of paying your sales tax. Unless your state doesn't have sales tax? __________________
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02-02-2011, 11:15 AM	#5
DCC Major 312 Rep 1,041 Posts Drives: Join Date: Jan 2008 Location: Texas iTrader: (0)	I believe that CA has revised sales tax rules that makes buying from CA not a 'simple' process.
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02-02-2011, 11:45 AM	#6
navarrojiii Private 37 Rep 69 Posts Drives: 2023 M340i Join Date: Sep 2010 Location: Los Angeles, CA iTrader: (0)	You can buy your car from CA however it will have to be shipped back to your home by truck otherwise you have to pay CA sales tax. The car cannot touch California soil basically. Then you pay sales tax where you live when you finally get the car. Might not be worth the hassle.
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02-02-2011, 11:53 AM	#7
GOLFFRR 10817 Rep 27,600 Posts Drives: GOLFFRR cart Join Date: Mar 2009 Location: we sell BMWs to "ALL" US states iTrader: (4)	ok guys seems like a little confusion in this thread so maybe i can help you out. first off you pay taxes where you register the vehicle, UNLESS driving the car from CA. The rule is if it touches CA streets you pay CA tax __________________ BEFORE YOU BUY YOUR NEXT BMW, EMAIL OUR GUY KOTE FIRST! Kote M Sales:Kotem@bmwofcamarillo.com Cell:805-368-9101 vipfinance@bmwofcamarillo.com for warranties!
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02-02-2011, 02:42 PM	#8
BBCar Enlisted Member 0 Rep 44 Posts Drives: RDX Join Date: Jan 2011 Location: PA iTrader: (0)	sorry to hijack the thread, but my question is somewhat related. what if the car was never fully registered in any state? (i.e. purchased with an out-of-state address & left US soil soon after it was delivered) I know it's kind of an interesting/unique scenario, but never say NEVER!!
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02-03-2011, 09:17 PM	#10
GOLFFRR 10817 Rep 27,600 Posts Drives: GOLFFRR cart Join Date: Mar 2009 Location: we sell BMWs to "ALL" US states iTrader: (4)	It all depends on the situation whether you fly out and pick up the car or if you ship the car. Ill PM you now. __________________ BEFORE YOU BUY YOUR NEXT BMW, EMAIL OUR GUY KOTE FIRST! Kote M Sales:Kotem@bmwofcamarillo.com Cell:805-368-9101 vipfinance@bmwofcamarillo.com for warranties!
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02-03-2011, 10:06 PM	#11
mrkbbd Lieutenant 10 Rep 483 Posts Drives: e92 M3 DCT Join Date: Oct 2009 Location: VA/FL iTrader: (0) Garage List 2008 Mercedes E63AMG [0.00] 2009 M3 [0.00]	What jurisdiction could California possibly have to impose that tax law? __________________ 2006 e53 X5 4.8is (sold) 2009 e92 M3 2008 E63 AMG
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02-04-2011, 03:22 PM	#14
GOLFFRR 10817 Rep 27,600 Posts Drives: GOLFFRR cart Join Date: Mar 2009 Location: we sell BMWs to "ALL" US states iTrader: (4)	So it depends on what your tax rate for your state is, but if you "drive" the car on CA streets then you have to pay CA taxes, and when you go to reg the car in another state you will only pay the difference between the two states. say for example CA was higher then another state then you wont get your money refunded but you wont have to pay more. however if CA was less then your state you have to pay the difference when you reg. thats why if your out of state in some situations your better off shipping, courtesy delivery. or PCD when picking up the car. It jsut all depends on the state and the situation. __________________ BEFORE YOU BUY YOUR NEXT BMW, EMAIL OUR GUY KOTE FIRST! Kote M Sales:Kotem@bmwofcamarillo.com Cell:805-368-9101 vipfinance@bmwofcamarillo.com for warranties! Last edited by GOLFFRR; 02-04-2011 at 03:27 PM..
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02-04-2011, 05:21 PM	#15
tukluc Private First Class 3 Rep 180 Posts Drives: 2011 E90 M3 Join Date: Sep 2010 Location: Washington State iTrader: (1)	Got more clarification.... Or you if you are doing an ED, you do the car registration paperwork between the out-of-state dealer and your home state DMV when you get back from Germany. Since the car takes 6-8 weeks to ship, there is more than enough time to get that out of the way and get your subsequent plates, etc. from the home state DMV. Worse case, your local DMV gives you temp. plates or trip permit while you drive it back. Unfortunately for us in WA, the tax rate is 9.8% so I DOUBT there is any savings to be had by paying only CA taxes
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