buying in AZ, I live in cali.
Looking to purchase a new toy hauler in AZ and I live in cali,I'm not sure how the tax thing would work for both states, any info from you guy's would greatly help thanks, I will also try and get in ...
Forum Discussion
ejulson gives good information. I helped a friend buy a 5th wheel in AZ and we both live in CA.
AZ will want to collect sales tax on the sale. Their procedure is to tax the *DIFFERENCE* between the sale price and the value of the trade in. CA will charge tax based solely on the sale price. My buddy was paying MSRP on the new 5th but was getting about 150% of trade in value according to the paperwork. The differences was acceptable and that is what he was concerned with. When he discovered CA would tax him on the full sale price ($120K at 8+%) he quickly redid the contract to show a minimum value for his trade in and a commensurate reduction in the price of the new 5th. That was a $35K reduction in the selling price. You can do the math.
AZ uses an electronic title system. There is no "pink slip". They keep it in their system. CA will want to see a paper registration. The process for getting that paper is SsssLlllOoooWwwww. Without it, you can't register in CA. He had a 90 day permit in CA and he barely made it in 89 days.
And as laknox pointed out, the 90 day out of state law is long gone. Originally passed, with little to no fanfare, to benefit influential (aka rich) airplane and yacht buyers. Once car and RV buyers started taking advantage, the rule was changed back to one year.
The cleanest way for a CA resident to buy is to take delivery in CA.
AZ will want to collect sales tax on the sale. Their procedure is to tax the *DIFFERENCE* between the sale price and the value of the trade in. CA will charge tax based solely on the sale price. My buddy was paying MSRP on the new 5th but was getting about 150% of trade in value according to the paperwork. The differences was acceptable and that is what he was concerned with. When he discovered CA would tax him on the full sale price ($120K at 8+%) he quickly redid the contract to show a minimum value for his trade in and a commensurate reduction in the price of the new 5th. That was a $35K reduction in the selling price. You can do the math.
AZ uses an electronic title system. There is no "pink slip". They keep it in their system. CA will want to see a paper registration. The process for getting that paper is SsssLlllOoooWwwww. Without it, you can't register in CA. He had a 90 day permit in CA and he barely made it in 89 days.
And as laknox pointed out, the 90 day out of state law is long gone. Originally passed, with little to no fanfare, to benefit influential (aka rich) airplane and yacht buyers. Once car and RV buyers started taking advantage, the rule was changed back to one year.
The cleanest way for a CA resident to buy is to take delivery in CA.
