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daveblack99's avatar
daveblack99
Explorer
Jun 11, 2018

Is this possible?

Hey everyone - very similar post to the latest one in this forum by mine is more tax related.

My wife and I are Canadian citizens but we want to purchase an RV in the US and leave it down there for the winters. We will be going to Palm Springs/Indio area for 6 months each year. We would never bring it back to Canada ... just leave it in storage during the summer months.

Here is the key thing - I want to try to avoid paying as much sales tax on the RV purchase as possible. Would that mean purchasing from a dealer in Arizona and having them deliver it to me in CA (out of state purchase would be tax exempt I was told). Would CA then allow me to plate it or would I have to pay CA sales taxes when registering it? Should I get it shipped to another state nearby with lower taxes and register it there to pay the least amount? If so, which state?

The RV we are looking at is 78K + 12% tax here in Canada = $87K CAD. The same rig is $52KUSD x 1.3exchange = $67K CAD before taxes. So at the minimum its an $11K savings - significantly more if there is a way to pay less sales tax.

Thanks for any help you can give! I have searched everywhere and so happy to have found this forum :) Hoping someone can help me out!
  • Don't mess with us thinking we are right. Talk to a CPA. May save you headaches and money in the long run. Every state es different
  • If you were to stay in Arizona and buy from a private party, there is no sales tax. But if you need to be in Palm Springs area, it wouldn't work since when you title it in Cali. the tax would have to be paid.
  • Instead of a trailer that would sit unused for 6 months a year why not buy a park model? Many folks do that and simply pay site fee for a year at a time. Seems to work for lots of snow birders.
  • The other option not mentioned is Arizona. Some of the You Tubers have mentioned using Az for titling and registration without fully changing domicile there.
    Bob Wells, @ cheap rv living is one, from his domicile series.
    But do your due diligence there as well, He isn't an attorney.
  • You cannot register in CA without paying sales tax (or proving you did in another state). Same with NV. Oregon has no sales tax but I don't know how expensive 1st time registration is. You'd have to have a street address there to do that. Sure looks like you are exposing yourself to some serious fines by playing that game.
  • Whatever you do make sure you have all the facts.
    If you get it wrong and the tax man gets a whiff of some shady deal you will pay much more than what you ‘saved’

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