Legally avoiding California Sales Tax
I've mentioned in a couple threads that I am looking at a Newmar Baystar. Unfortunately the actual price is coming in ~35K lower than MSRP. From what I understand California charges sales tax on MSRP ...
Forum Discussion
FIRE UP wrote:
Well,
I didn't bother reading all the responses but, first of all, no one on this planet EVER pays MSRP of anything sold, EVER! It's a "SUGGESTED" price, not the actual sales price. And, with that being said, a person pays ONLY THE TAXES on the sales price, PERIOD! If it were true that taxes could be collected on MSRP, of anything, cars, trucks, motor homes, space ships, submarines, ANYTHING, then our governments would be a lot better off financially than they are now due to the phenomenal additional amount they WOULD have collected and, would continue to collect.
To pay taxes on what someone or, some manufacturer, THINKS something is worth, is ludicrous.
I mean, how many times have all of us been told by a salesperson, "MSRP" is this but, WE'RE SELLING IT FOR THIS!!! And the "this" is quite normally seriously lower than the MSRP. It is that price, that one pays taxes on.
Scott
Just fyi, the State of NH charges annual municipal registration fees based on the MSRP of the motor vehicle. Here's the relevant law: Section 261:153 Fees for Registration Permits. . This portion of the total registration fee is deductible on federal income tax returns.
(That being said, when I first registered my new RV in 2005 the local vehicle registration folks put down my actual purchase price as the 'MSRP', which saved me a bunch of money!)
