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
Wow, all of the various taxing schemes can be a real headache to maneuver through!
Here in Texas, you only pay tax on the actual amount paid for the vehicle - less the trade-in amount. That seems fair enough to me. You are actually only going to pay tax based on your transaction cost - actual money out of pocket. The trade-in will generate its tax revenue when resold, typically at a higher rate than was credited for trade-in on the new vehicle sale.
I still wonder how much tax revenue is generated over the lifespan of a vehicle though. If the average vehicle (now) last 20 years, and is sold 4 times during its lifespan, that is going to add up over time!
Here in Texas, you only pay tax on the actual amount paid for the vehicle - less the trade-in amount. That seems fair enough to me. You are actually only going to pay tax based on your transaction cost - actual money out of pocket. The trade-in will generate its tax revenue when resold, typically at a higher rate than was credited for trade-in on the new vehicle sale.
I still wonder how much tax revenue is generated over the lifespan of a vehicle though. If the average vehicle (now) last 20 years, and is sold 4 times during its lifespan, that is going to add up over time!
