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Topic: CA sales tax for non-CA resident (Read 4 times) previous topic - next topic
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CA sales tax for non-CA resident
Yahoo Message Number: 102784
I know that there has been some message traffic in the last few months on this topic.  I'm still trying to understand all the nuances.
 Basic info:  I'm a resident of New Mexico, am shopping for a Lazy Daze, and there are quite a few for sale in CA.  Sales tax on vehicles in NM is only 3%, and it can go as high as 9.25% in CA.  So, obviously, I want to avoid paying sales tax in CA.
 I've read the Reg 1620 document on this site.  It appears to me that the seller must deliver the vehicle to the buyer outside of CA using either the sellers own personnel/transport, or must use a common carrier, customs broker or forwarding agent in order to avoid payment of CA sales tax.
 Also, in reading the sales tax reg's on some other sites, it appears that the payment of sales tax is actually the responsibility of the seller, not the buyer.  So, in case of nonpayment, CA's recourse would be against the seller, rather than the buyer.
 I'm (obviously) not a lawyer.  If anyone can shed more light on this, I'd appreciate it.

Lea Williams
Santa Fe, NM
Re: CA sales tax for non-CA resident
Reply #1 –
Yahoo Message Number: 102785
Lee, I'm not a lawyer either, but as a CA residents, we've bought a sold a few used vehicles over the years. We've always paid the tax as a buyer when we went to DMV to register the vehicle
Re: CA sales tax for non-CA resident
Reply #2 –
Yahoo Message Number: 102949
Perhaps the last chapter in this saga:

After spending a fair bit of time on hold, spoke to CA DMV.
 Their response:  an individual, non-CA resident, purchasing a vehicle in CA from a CA resident does not owe CA sales tax on the transaction if the vehicle is subsequently removed from CA and reregistered in another state.
 He did say that it might be wise to purchase a one-trip permit while driving the vehicle out of CA.

I think that clears it up for me, hope its helpful.
 BTW, the muzak-on-hold at CA DMV might cause permanent brain damage...
 
Re: CA sales tax for non-CA resident
Reply #3 –
Yahoo Message Number: 102970
Lea says:
 "Their response: an individual, non-CA resident, purchasing a vehicle in CA from a CA resident does not owe CA sales tax on the transaction if the vehicle is subsequently removed from CA and reregistered in another state.
 He did say that it might be wise to purchase a one-trip permit while driving the vehicle out of CA."
 That's exactly what I did when I bought our rig in Wisconsin.  Ran on the trip permit until we got home to AZ then bought the AZ tags with no sales tax!

Glen

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