Why buy out of California

Francesca Knowles wrote:

rgatijnet1 wrote:

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

Did I misinterpret your statement?

I thought its implication was/is that California gets a lion's share of Federal Money due to some profligacy you perceive. The factual link you provided only says that since California is the most populous State, it gets the largest of fifty shares of Federal spending. Naturally! But it doesn't even make the top TEN when it comes to per capita Federal spending.

And there's no indication whatever there that "Californian profligacy" has anything at all to do with its apportionment.

Yeah I think somebody forgot to read their own link. I'm not one to defend California's government spending because the political party in power is currently out of control here, but California is also a huge economic engine that benefits the entire Country. Clearly from the links posted, California funds a lot more of the Federal Government than is uses on a per-capita basis. Not to mention all that military spending that's factored in there is for services that benefit more than just California.

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.

12% of the US population lives in California. Californian's also pay more Federal taxes than other states so it makes sense that Federal dollars also come here. But people often misread that stat because a lot of those Federal Dollars that come back to California are Military spending. We have a huge number of military bases here as well as manufacturing facilities for military equipment such as aircraft and ships. At least we used to have ship building here, I'm not sure if any of the ship yards are still active, but we still have a lot of Navy ships that are based out of California.

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

Well you'd have to ask all your former neighbors who moved here. Yeah we get taxed out the rear, but there's also good money to be made here too. 1 out of every 9 American's lives in California and yet it's still not the most crowded state as long as you stay out of Los Angeles County. If Los Angeles County were it's own State it would be the 8th largest state by population in the Country.

OP Most of the posts on this and other related threads are incorrect or irrelevant for CA. My reading of the current version of Pub 52 led me to conclude that qualification for the exemption is difficult for a CA resident.

As a CA resident I qualified in 2004 when the period was 3 months after submitting 100 pages of detailed logs, CG, food and fuel receipts for our travels. The rig was delivered to Nevada with notarized documents and then registered in CA.

Read and completely understand Pub 52 for CA. Among other restrictions in 2004 and I believe still current was functional use out of state, currently for 1 year. Storage was not functional use. This are other current restrictions that may make it difficult to qualify, perhaps very difficult for a CA resident.

When I purchased my truck in Charlotte,NC I was charged $10 or so for the drive-out tag. Got back to Memphis, paid normal TN sales tax when I registered it.

TN puts a limit on the local portion of sales tax on big ticket items, so effective tax rate was about 7.25%.

soren wrote:

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.

I have to agree with you on your statements about the many ways to avoid taxes on vehicle purchases in CA. I believe that the RV part is a very small part as compared to Airplanes, Boats or Yachts where the taxes can be in the hundreds of thousands of dollars.

JimR

Francesca Knowles wrote:

rgatijnet1 wrote:

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

Did I misinterpret your statement?

I thought its implication was/is that California gets a lion's share of Federal Money due to some profligacy you perceive. The factual link you provided only says that since California is the most populous State, it gets the largest of fifty shares of Federal spending. Naturally! But it doesn't even make the top TEN when it comes to per capita Federal spending.

And there's no indication whatever there that "Californian profligacy" has anything at all to do with its apportionment.

You have to look at the rate of return for every dollar paid in for there to be a fair assessment of who gets a better rate of return, how much comes back of that dollar. states-most-least-dependent-on-the-federal-government.

I have bought my last 2 in other states. I paid the Ca Sales Tax, and DMV Fees on both. The reason I bought out of state was the dealers in Ca will not deal as well as those out of state. If you can't afford to pay the taxes and fees where you live, then you can't afford what you are buying. You choose to live where you do, so I have no issue with the State going after those that do not pay.

rgatijnet1 wrote:

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

Did I misinterpret your statement?

I thought its implication was/is that California gets a lion's share of Federal Money due to some profligacy you perceive. The factual link you provided only says that since California is the most populous State, it gets the largest of fifty shares of Federal spending. Naturally! But it doesn't even make the top TEN when it comes to per capita Federal spending.

And there's no indication whatever there that "Californian profligacy" has anything at all to do with its apportionment.