Why buy out of California

There is a sales tax exemption for purchases delivered to the buyer out of state.

Pub 52 describes the process of avoiding use tax (same rate as sales tax) by demonstrating that the use of the goods purchased will be outside of the state.

The california resident can register the vehicle in California at the DMV and not pay sales or use tax with the proper documentation being submitted.

After the test period is over, the BOE will require supporting documentation for the exemption or will require the tax to be paid plus penalties.

I have an exemption letter from the BOE, but it was achieved when the test requirements were much easier.

"As the State with the highest total debt, by FAR, most of us know that a lot of our IRS taxes are being funneled to California to help a state that has never figured out how to live within their means."

This is what I'm talking about. Here's another ignorant statement made by someone that has not bothered to look up the facts before posting nonsense. California sends MORE taxes to the federal government than what it gets backs.

Here's a chart that is a few years old that shows who pays and who doesn't. If you look closely, you'll notice a handful of Southern states don't carry their own weight.

United States Federal Tax Dollars

Francesca Knowles wrote:

rgatijnet1 wrote:
most of us know that a lot of our IRS taxes are being funneled to California to help a state that has never figured out how to live within their means.

:h

Say what???

Since the link you provided makes no such assertion, perhaps you'd be kind enough to provide some other source for that remarkable statement.

Sure, I'd be glad to. States that get the MOST in federal money

Another link: Federal bailouts

Jim & Betty wrote:

There is much information in this thread that is in error or not correct.Pub 52 will give you the way to avoid paying California taxes, note i said avoid not evade as tax evasion is illegal.

On a $150,000 RV the tax at 7.25% (I think the lowest for CA some as high as 10%) is $10,875.00.

To answer the question why buy out of California? To save the sales tax on the purchase. If you buy a vehicle in CA you will pay the taxes for where you live if a CA resident or you will pay the taxes for the jurisdiction where you buy if you are not from CA. If a CA resident that lives in CA but properly buys out of state the vehicle will still be registered in CA through the DMV with the tax clearance from the Board of Equalization (BOE) if the RV does come back to the state. Note the DMV has authorization to collect for the BOE.


JimR

My late father ran with a very wealthy crowd, as he spent his retirement years in Newport Beach. When it comes to very expensive toys such as collector cars, yachts and Prevosts, this demographic isn't afraid to go to great lengths to avoiding the onerous cost of ownership in CA. I have heard tales of everything from shell corporations in Vegas that own, maintain and deliver high end coaches to "corporate officers" for their use, to taking delivery of large boats in international waters, and keeping them docked in other states (or countries), until things cool off.

It's a pretty high stakes game of cat and mouse when the BOE is expecting a six figure check for the new Prevost you ordered, only to be disappointed. There some great stories out there regarding the tenacity of the BOE agents.

One guy told me that he nearly laid an egg when his cell rang while piloting his boat in FL. He bought it six months previously, never notified anybody of the purchase, and it was in dry docked in FL. while undergoing renovations the whole time. The agent called his unpublished number, addressed him by his first name, and asked if he was enjoying his 50' brand X boat? He ended the call by telling the boat owner that he looked forward to the owner and boat returning to CA.

Here in NJ, it doesn't matter WHERE you buy....but when you REGISTER and TITLE the vehicle IN New Jersey, that is when the sales tax (on the purchase price) is paid. 6% or 7%. No "footage" fee.
Must show bill of sale, insurance, I think something must show the weight (for classification ($ ?)) and, of course, a photo ID (of you, like your drivers' license. Unlike voting a photo ID is required for everything else). You may get charged a "gas guzzler" fee (tax) when you register. That's something new I heard of.

rgatijnet1 wrote:
most of us know that a lot of our IRS taxes are being funneled to California to help a state that has never figured out how to live within their means.

:h

Say what???

Since the link you provided makes no such assertion, perhaps you'd be kind enough to provide some other source for that remarkable statement.

Property tax's in Wisconsin are high, plus the 7 months of heating bills. Also wages are at a stand still. Every state has its problems.

gemsworld wrote:
Some of you guys from out of state love to bash California taxes without really knowing what they are.

For starters, the sales tax is 8% to 9% in most jurisdictions. How does that compare to YOUR own sales tax? I know Oregon does not have a sales tax.

Registration cost on a new vehicle is about 5/8 of one percent plus roughly another $100, and then decreases every year. To put it in context, if you buy and register a $50K motor vehicle or RV in California, the registration fee will be around $412 for the first year. How does that compare to YOUR state?

Those of you that live in states without sales or income taxes end up paying much higher property taxes and other fees to make up for the difference. There is no free lunch...and no state is perfect.

Some of us don't bash California taxes, we just bash California. As the State with the highest total debt, by FAR, most of us know that a lot of our IRS taxes are being funneled to California to help a state that has never figured out how to live within their means. Taxes are not the problem. Spending more than you take in is the problem and the California politicians have not learned that yet. Not saying that other states are perfect, but California is in a league of their own. Massive California debt

Why would anyone want to live in that State? I understand its beautiful but you can always visit.

Sure sounds like the land of honey, but am amazed there is no other taxes or fees to go along with such low taxing. What am I missing ?
Dave M