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Sales tax calculated where?

AMCheese

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Is sales tax calculated where the vehicle is purchased or where registered? For me both are in the same state, however there is a 2% difference.
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MrJoe

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Is sales tax calculated where the vehicle is purchased or where registered? For me both are in the same state, however there is a 2% difference.
Where it's registered.
 
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AMCheese

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Looks like I am paying the higher.
 

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Bodge Garage

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Some states like CA collect tax if the vehicle is purchased and used in the state, ie you drive it home. Best to check. Also if buying out of state make sure your registration state recognizes the tax paid in the purchasing state.
 

ClaviusBase

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Damn, it’s gonna be almost an extra 5k for a 56k broncofor me here in California.
 

chtucker

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10.1% sales tax here.. Sales tax collected based on dealership location. If purchased out of state, they have an excise tax which equals sales tax where you reside.

It just sucks..

But we have no income tax.
 

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Is sales tax calculated where the vehicle is purchased or where registered? For me both are in the same state, however there is a 2% difference.
In my state (Utah) the sales tax is assessed at the rate where the dealership is located (assuming you’re an in-state buyer). In fact, the dealership in my county advertises the fact you can save $$$ in sales tax by making the short drive here. It may be worth looking into the rules in your state. You may be able to benefit from the lower sales tax in another county.
 

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WarDamnBravos

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I just calculated mine in California and came out to $3300 off a $36k vehicle.

Could someone explain the scenario where I could purchase a vehicle in another state (Granger w/ $2k discount) and not pay CA tax and yet still be legal in California? Are there additional steps I need to take once I get the vehicle back in CA? When will I eventually need to register it in here? Will I incur an excessive cost at that point?
 

GoldenKnight

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I just calculated mine in California and came out to $3300 off a $36k vehicle.

Could someone explain the scenario where I could purchase a vehicle in another state (Granger w/ $2k discount) and not pay CA tax and yet still be legal in California? Are there additional steps I need to take once I get the vehicle back in CA? When will I eventually need to register it in here? Will I incur an excessive cost at that point?
You'll have to register it, and you can't register it until you show California that you paid the taxes due on it. I think most states are generally 30 days to register a vehicle after bringing it into the state.

I just bought a car out of state and paid no taxes, while getting the registration done though I had to write a check to the Illinois Department of Revenue for the 7% taxes my county charges on auto sales. They go by the bill of sale too, so no fudging the numbers either and saying you got it cheap etc.

No matter where you buy it you need to pay those $3,300 in taxes, or you'll never get it registered or titled.
 

TwinTurboStang

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ZackDanger

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I just calculated mine in California and came out to $3300 off a $36k vehicle.

Could someone explain the scenario where I could purchase a vehicle in another state (Granger w/ $2k discount) and not pay CA tax and yet still be legal in California? Are there additional steps I need to take once I get the vehicle back in CA? When will I eventually need to register it in here? Will I incur an excessive cost at that point?
There is no such scenario.

Granger will not charge IA tax (many states do not charge out of state buyers tax)... but you will have to pay tax in CA when you register and title it.

That Said, taxes are calculated against the actual purchase price of the vehicle, which means many states use the cost of the car *after* discounts and trade-in to determine how much you owe.

If you are concerned about being able to afford the taxes out of pocket at time of registration, many dealers, Granger included, will roll the taxes you will owe in your home state into the financing, and then they’ll cut a check to the CA DMV for that amount for you to pay them with when you get home.

Good news: You only pay taxes once.
Bad news: You can’t commit tax evasion.
;)
 

CalPilot

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I just calculated mine in California and came out to $3300 off a $36k vehicle.

Could someone explain the scenario where I could purchase a vehicle in another state (Granger w/ $2k discount) and not pay CA tax and yet still be legal in California? Are there additional steps I need to take once I get the vehicle back in CA? When will I eventually need to register it in here? Will I incur an excessive cost at that point?
You’ll have to pay Gov. Newscum when you bring it back to Calif. my daughter bought a new RAV4 in Utah this year and then had to pay CA taxes when she registered it. California’s budget is tens of billions of dollars in the hole so they tax everything they can. The ballot propositions had numerous forms of tax increases in one form or another.
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