I thought bait & switch was gone, apparently Mark Mazda still does it

[yrwei52]

In summary, you're going to pay tax with a car is registered, not where it's bought

So what is going to happen if one bought a new car at higher sales tax state but is registered at a lower sales tax state? Can he get a refund?

Each state may have different regulations, and they could get changed along the way. I do remember you can or at least it used to be able to buy a car with out-of-state status without paying sales tax at the time of purchase.

A friend here in Dallas area who bought a new Lexus RX 350 here, then drove it to LA for use for his second home there. He paid lower 6.25% sales tax for Texas (not 8.25% general sales tax we usually pay in Dallas which includes 2% local sales tax) instead of ~10% in LA area. He only needed to get CA smoke test and transfered the title to CA. He saved almost $2K on sales tax by doing this.

 

[st8943]

So what is going to happen if one bought a new car at higher sales tax state but is registered at a lower sales tax state? Can he get a refund?

lol, refund from the tax man? Glad you put a wink after that on.

Each state may have different regulations, and they could get changed along the way. I do remember you can or at least it used to be able to buy a car with out-of-state status without paying sales tax at the time of purchase.

I've bought 3 vehicles out of state starting from back in 2004, in 3 different states. All charged their local sales tax which thankfully were all lower than WA.

A friend here in Dallas area who bought a new Lexus RX 350 here, then drove it to LA for use for his second home there. He paid lower 6.25% sales tax for Texas (not 8.25% general sales tax we usually pay in Dallas which includes 2% local sales tax) instead of ~10% in LA area. He only needed to get CA smoke test and transfered the title to CA. He saved almost $2K on sales tax by doing this.

How long did they have it in Dallas? If you have a vehicle registered in a state for a certain amount of time before moving to another state then sometimes there are exclusions/reductions in tax owed.

 

[StPark]

A friend here in Dallas area who bought a new Lexus RX 350 here, then drove it to LA for use for his second home there. He paid lower 6.25% sales tax for Texas (not 8.25% general sales tax we usually pay in Dallas which includes 2% local sales tax) instead of ~10% in LA area. He only needed to get CA smoke test and transfered the title to CA. He saved almost $2K on sales tax by doing this.

California tax rule is one the most strict. CA use tax reads;

"If a vehicle is brought to California within 12 months of purchase, use tax may be due. If you paid sales/use tax to another state, you may receive credit toward California use tax not to exceed the California tax."

Someone in CA DMV where your friend's car is registered made a mistake or your friend is not telling the truth.

 

[CX5_Driver]

@StPark -- yeah I think someone isn't telling the whole story.

California's Taxation of Vessels, Vehicles, and Aircraft: Out of State Purchases

Tax Guide for Purchasers of Vehicles, Vessels, & Aircraft

www.cdtfa.ca.gov

"
Determining the Amount Subject to Tax
The total purchase price of your vehicle is subject to tax. The total purchase price includes any type of payment, such as cash, checks, the payment or assumption of a loan or debt, and the fair market value of any property and/or services traded, bartered, or exchanged for the vehicle.

Example #1
You take over monthly payments for a car your friend can no longer afford and, in exchange, your friend transfers his or her interest in the car over to you. You owe use tax on the balance of the loan at the time you assumed the debt, plus any cash you paid for the car. You still owe use tax even if you do not make any cash payment directly to your friend and only assumed the unpaid debt.
Example #2
You purchase a vehicle for $5,000. As payment, you give the seller your current vehicle valued at $3,000 and $2,000 in cash. You owe use tax on the entire $5,000 purchase price.
Example #3
You trade vehicles with another person. No money is involved in the transaction. The vehicle you traded has a current market value of $5,000 at the time of the exchange, which is considered to be your purchase price for your new vehicle. You owe use tax on the $5,000 purchase price.
Example #4
You purchase a vehicle from a private party. The seller knows that you are a painter and offers you the car in exchange for painting his house. You would usually charge $5,000 for this service. You agree to the exchange. You owe use tax on the $5,000 value of the service you performed.
Credit for Tax Paid to Another State
If you paid tax to another state when purchasing your vehicle, you may be entitled to claim a credit for the tax previously paid to another state.

For example, if you previously paid $1,500 sales or use tax to another state for the purchase of the vehicle, and the California use tax due is $2,000, the balance of use tax due to California would be $500.
"

they even have a fancy web application to help you calculate the fees/taxes

Calculate My Fees - California DMV

DMV Fee calculator for VLF, renewal, new vehicles, new residents, and used vehicles.

www.dmv.ca.gov

 

[yrwei52]

California tax rule is one the most strict. CA use tax reads;

"If a vehicle is brought to California within 12 months of purchase, use tax may be due. If you paid sales/use tax to another state, you may receive credit toward California use tax not to exceed the California tax."

Someone in CA DMV where your friend's car is registered made a mistake or your friend is not telling the truth.

As far as I know, he used AAA, not DMV, to get his new CA plate and registration.

 

[murky]

↑ Exactly. WA residents living in borderline from OR, often cross the bridge to go Home Depot or Costco in Portland for large purchase taking advantage of ZERO sales tax. But in case of vehicle sales, you have to pay sales tax when registering the car. It's called Destination-Based tax.

Technically WA residents are supposed to pay WA sales tax on those Oregon Costco purchases too, but it isn't enforced in practice.

 

[StPark]

Technically WA residents are supposed to pay WA sales tax on those Oregon Costco purchases too, but it isn't enforced in practice.

Oregon residents who shop at Costco or Home Depot in Vancouver, WA used to be able to avoid paying WA sales tax by showing WA driver's license. Now they have to apply for sales tax refund, only the state portion(6.5%) minimum $25. But WA residents who shop in Oregon never pays sales tax because no one asks for ID. I don't know of anyone who voluntarily report and pay the WA state use tax.

 

[CX_FIVER]

Check online inventory and send an email to the Online Manager and request an OTD price. I have never had a problem when I went to the dealer with different pricing. I give them my phone number and they have called me. You are on level ground on the phone. They can't play games like they can at the dealership. Once we agree on the final price I ask for an email with VIN number.

It is less traumatic to hang up than get up and walk out from a dealership. On the phone, YOU are in control. They will ask "When can you come in.....". Your answer is a time and day" or "As soon as I get all my deals together...I am like you....always looking to save money....". They have a difficult time arguing with that point. Alot easier than going to a dealer and getting up to leave to check other dealers.

Email and phone is the way to go.

 

[hal2]

No sales tax on private party car sales in Arizona - hehe. Though that's probably from and to an Arizonan resident.

 

[StPark]

No sales tax on private party car sales in Arizona - hehe. Though that's probably from and to an Arizonan resident.

No sales tax for private party transactions in Nevada. Even out of state private party sale, but NV has rather high registration fee.