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Topic: California sales tax on private sale (Read 25 times) previous topic - next topic
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California sales tax on private sale
Yahoo Message Number: 159858
Anyone know the short answer on selling a CA registered LD in a private sale to an out of state buyer? Must it be collected or not. I read the regulation that's posted in the buying/selling section but I don't understand it. It refers to the seller as a "retailer" and that's where I stop getting it.
Thanks Mark
Re: California sales tax on private sale
Reply #1 –
Yahoo Message Number: 159862
When I purchased my LD from the second owner in CA the answer was no I did not pay CA tax. That was four years ago. The regulation seems to be different for private owners and dealerships. I think (I don't know because I am not a CA resident) that the tax is based on the license tag's owner and weather or not the vehicle is new. The previous owner explained this to me over the phone before I purchased the RV and pointed in an e-mail where to look to verify what he said. The big advantage of the CA system is the tag is part of the car. So when ownership of the car changed, ownership of the tag changed. I did not need a temporary tag to drive home with.

We filled out the paperwork that transferred the tags to me. The tags were current for a few months. If I had wanted to continue using the tags after they expired I would have had to pay the tax when updating the tags (and likely do other things too). I did have to show proof of insurance to the previous owner. The process was all very straight forward and easy - much more so than in VA where I live. I think the forms were available for the original owner at the DMV and on line. The previous owner had everything ready. This way I had litigate tags to drive home with. My copy of the form was my temporary registration. His copy was release of liability for an accident. The original went to CA DMC to be read by a computer and update the file.

Once home I tagged the RV (as a motor home) in VA and paid the taxes here. I took the tags off the RV well before the due date. Never heard from CA.

John DaCrema 07 MB
Currently: 2008 36' Tiffin Open Road
Previously: 2007 Mid Bath
Re: California sales tax on private sale
Reply #2 –
Yahoo Message Number: 159867
Mark--

I went from north Missouri to SoCal to pick up LDy Lulubelle from her previous family in December 2013. I did not pay any CA taxes--just paid the MO title transfer fees & taxes when I got her registered/licensed after returning home. I called my insurance agent to activate her coverage as soon as we completed the transaction in CA, & the previous owners left the CA tags on her for the trip back here.

The only hitch was that we didn't think through the money exchange in advance. My dad was a realtor & farmer who had done out-of-state transactions on farms & cattle, & I'd heard him talk about just writing checks off the business & farm accounts, so I took off into the sunset on Amtrak from Kansas City with my checkbook. We got to their bank after lunch on Tuesday to trade money & notarize paperwork & their bank says they will hold my check for three business days--I'm due back in Missouri in four days & there's a major winter storm heading out of Canada toward the midwest...I really wanted to get out of Dodge. By this time it's after 3:00 in Missouri--when the main banks close...fortunately I had my smalltown phonebook with me that had the banker's home number listed & I was able to track him down; he called his assistant & had the local bank do a direct wire transfer to the CA bank. If I were ever to do something like this again, I'd have all those arrangements made in advance...I suppose a cashier's check would be another option.

...it rained on me most of the way from Denver, but I thankfully got into my little north MO burg just as it was turning to sleet & freezing rain. Good luck with getting your "i"s dotted, "t"s crossed, back to your home base, and off to your future adventures.

Lynne LDy Lulubelle, '05 30' TB Lilly, the 4-legged Alarm
Lynne
LDy Lulubelle, Green '05 31' TB
Lilly, the 4-Legged Alarm
Re: California sales tax on private sale
Reply #3 –
Yahoo Message Number: 159868
Lynn Glad everything fell into place for you. Right down to the wire! Thanks for your input.
Mark
Re: California sales tax on private sale
Reply #4 –
Yahoo Message Number: 159869
Thanks John. I am hoping that's the way it will play out. I'll download the forms and check them out. Should be some clues there. I think though, just like in your case, if the out of state buyer doesn't register in CA there is nothing owed in CA.
Thanks Mark
Re: California sales tax on private sale
Reply #5 –
Yahoo Message Number: 159870

No out of state buyer need pay California sales tax, if they are leaving the state with the vehicle. If they want to hang out in California for a while, they should have current tabs if they dont want to be stopped by the CHP.
If you WANT to pay the 8.5% transfer tax, please do so in Sonoma County. Our schools need the money.
Mark
Re: California sales tax on private sale
Reply #6 –
Yahoo Message Number: 159871
Living in Oregon my husband and I have bought many vehicles in California. When I bought my used car from a dealer they arranged to have the car driven to Oregon so no sales tax was paid. We have bought many vehicles from private parties including one LD in 1999 and one three weeks ago. The seller simply signed over the title and we drove the vehicle to Oregon and the Oregon DMV issued a new title, registration and plates.

Motorcycle dealers have just winked at the "take possession" over the state line.

The last LD we bought I took a cashiers check and met the owner at his bank. The bank called my credit union to verify the check and off I went driving back to Oregon title in hand.

Lisa
2004 MB