Buying an RV in Oregon.

[Petethescot]

Hi All, we are Canadians looking to buy a used 5th wheel to take to Palm Springs once the borders are open again. What I would like to know is, if we buy one in Oregon and take it to California to leave year round do we pay sales taxes? Can I buy road insurance for the purpose of hauling it down to Palm Springs Even though I do not have an Oregon residence. What do I have to do?
I understand I cannot register the rig in Oregon as not a resident. So would it be registered in California .
Thanks for any feedback.
Peter

[Gdetrailer]

Petethescot wrote:
Well if,my head was not spinning before it is now. ??. I get some say buying in Canada maybe easiest option. But the prices in US are cheaper when you take exchange rate (approx 28%) into it. That’s the reason for my question. I don’t mind paying taxes but was hoping to avoid the additional exchange rate taxes by bring back to Vancouver first.I was hoping to buy in US take to Outdoor Resorts in Cathedral City. And eventually sell it years later in CA. So figured I would be able to title in CA. But may not be so as not a CA resident. Very confusing.
I have read that I can get a “Use” title there and pay the appropriate taxes.

Thanks again for all your response.

The problem here is you are not a "resident" of California.

You also are not a US Citizen.

These two things are a major issue.

You do not understand that in order to get a title titled in YOUR name in most US states you MUST be a citizen of the US AND a RESIDENT of the state you are getting the titled at.

Each State will have to take your old title and then they will generate and issue a new title in YOUR NAME. Each state has different rules on how that is done but typically you will have to surrender old title and the states DMV will create the new title.

Each state handles their own registrations and plates, typically you will pay a yearly fee to keep the registration and plate current.

Since you are not a resident of the target state, that states DMV will not be able to process your title..

Each state has their own rules on "residency" but typically you have to make that state your "primary" residence (in other words you HAVE to have a "HOME STATE") in order to be able to transfer titles and get RV plate registration.

The target state of California also REQUIRES you to have the trailer properly titled/registered for on road AND PARKED.

Depending on used or new you buy in Oregon (or any other state for that fact) you may get just a Title in the sellers name that the seller will have signed off ownership on the back of the title, you can have seller make up a Bill of sale to you to help you prove it is not stolen.

Buy from a dealer and for new RV you will most likely get INCOMPLETE Origination title which is the documentation that the manufacturer gives to the dealer because you are not a resident of that state or even a citizen of the US plus the sales agreement..

You would have to take the title (which would be in the name of the seller plus the bill of sale) or if dealer bought the incomplete title paperwork and sales agreement to California DMV..

Now at California DMV, they will not be able to issue you a new title IN YOUR NAME because you are not a resident of California nor a citizen of the US..

In reality, you most likely WILL have to take the title paperwork back to Canada pay your taxes and fees to have Canada issue a new title in YOUR NAME.. In doing so, I suspect you will end up paying not only 12% tax plus fees but may even get hit on importing the trailer into Canada (VAT or Value Added Tax? or GST (Goods and Services Tax? or Import Duties tax?) which I am sure you are painfully aware of..

Just because RVs may be "cheaper" in the US, it doesn't mean your going to save a ton of money..

If you want to save bunches of money, you may need to find a different state other than California to park your US bought bargain in that doesn't have a requirement on registering and paying for that registration even when permanently parked.

There ARE other states that you can buy and park a RV on land or in a park that do not care if it has a current registration or even a plate as long as the RV is never put on the road..

While am sure there may be "ways around" some of this Residency and Citizen thing, I suspect it will be much more costly and one heck of a pain in the behind.. Which is why I suggested that perhaps in the long run it may be far cheaper to buy and title your RV in Canada..

While we can only guess at this, they ONLY real way to find out is YOU have to personally contact the California DMV, explain clearly that you are not a resident, and not a citizen of the US in order to get a real answer.

You should also contact the Oregon DMV and explain the same to find out how their system works for folks living outside that state and US works.

That IS how I have made purchases of vehicles that were outside of my state..

My guess is neither state will issue you a new title in your name nor issue a plate in your name. Might be able to get some "temp tag" or temp moving permit but even that is not a guaranteed thing here.

And for the record, I am not slamming you for being a Canadian resident. Most US state DMVs will be specifically setup to service their own residents of that state..

Example, I am a resident of PA.. I can go to NY, OH, Virginia and so on but those states DMVs cannot process me in their systems in order to issue a new title in my name title to me or even to issue and register a plate for me to use in that state.. I won't get OH issued title or plate..

If I want to put a RV or vehicle legally on a road in PA or any other state, I HAVE to do that in my state of residency (where I live)which is PA..

[pianotuna]

Petethscot,

Talk to CAA and see if they know?

[Petethescot]

Well if,my head was not spinning before it is now. ??. I get some say buying in Canada maybe easiest option. But the prices in US are cheaper when you take exchange rate (approx 28%) into it. That’s the reason for my question. I don’t mind paying taxes but was hoping to avoid the additional exchange rate taxes by bring back to Vancouver first.I was hoping to buy in US take to Outdoor Resorts in Cathedral City. And eventually sell it years later in CA. So figured I would be able to title in CA. But may not be so as not a CA resident. Very confusing.
I have read that I can get a “Use” title there and pay the appropriate taxes.

Thanks again for all your response.

[Dtank]

Super_Dave wrote:



Of course if OP is planning to move the RV to California to a permanent site they might be able to get away with never transferring the title and thus avoiding California' taxes and registration costs....

It is a no win situation.

Op could buy in Oregon, never transfer title, nor register title, nor get tags and pay to have a heavy hauler with a flat deck low boy trailer and drop off at the exact spot without the need for title, title transfer and paying taxes.. But, a Heavy hauler with a low boy flat deck could cost a couple of thousand... And if they ever decided to sell they are stuck with an untitled trailer that they can not sell because of the messed up title.

Lots of replies from folks in lots of states OTHER THAN California!
Ain't the same ball game, folks!

*If* the trailer is *anywhere* in CA, it will need to be registered in
CA - and pay annual registration. Doesn't matter it it's in a private RV park, or your own property....and never sees the road.

Sales tax will be required by CA. The rate varies by county & city - from approx 7% to 10.5%. Riverside County is 7.5% - however, Palm Springs (located in Riverside Co.) is 9.25%.

For your non-resident situation - you need to talk to the CA State BOE, rather than the CA DMV. The CA DMV is notorious for giving bad info!

On Edit: A search for the CA Board of Equalization still works, but it is now the - "California Dept. of Tax and Fee Administration" - (CDTFA). See the "BTW" below.

Some of the Maple-Leaf snowbirds may be able to help....maybe someone with *CA* experience doing same will chime in. (Note: AZ is *not* the same as CA).

BTW: Beware! The trailer you register in Oregon is a "red flag" for CA CHP watching for CA residents attempting (CA) tax fees avoidance! A "mismatch" of trailer -vs- tow vehicle plates may raise questions.

Good luck!

.

[Gdetrailer]

spoon059 wrote:
Wait... are you buying in Oregon and then parking it on a permanent site in California? If so I would just get a temp tag from the dealer when you buy it. No sense paying yearly registration fees for a vehicle that doesn't move. Again, I'm not familiar with Cali requirements. In Maryland, you don't have to have tags unless its moving down the road.

Yes, you pay sales tax on it. I'm not sure how taxes will work in Oregon/Cali in your scenario. Usually you pay sales tax when you buy (from a dealer), and they send that money to the state where you register the vehicle. In your case, if you don't have to register the vehicle, I'm not sure how that would work...

Insurance is insurance. My truck's insurance covers the trailer when I'm driving. My RV insurance covers the trailer when its parked. Now, whether they will let you only buy 1 months worth of insurance is another question.

In the end, it begs the question... why not just buy in California and have it delivered?

I suspect it is because of Oregon's sales tax structure..

Oregon does not have a general sales or use/transaction tax and is looking at that as a tax loophole..

OREGON SALES TAX

"About sales tax in Oregon

Oregon doesn't have a general sales or use/transaction tax.

However, Oregon does have a vehicle use tax? that applies to new vehicles purchased outside of the state. The tax must be paid before the vehicle can be titled and registered in Oregon.??

Oregon uses the Oregon Business Registry Resale Certificate for Oregon buyers who buy goods outside of the state and then resell them in Oregon.

Don't file this form with us. Give the completed form to the out-of-state seller at the time of purchase. The out-of-state seller may accept this certificate as a substitute "resale certificate" and exempt the transaction from the state's sales/use/transaction tax, but they are not required to accept it. Some states, including Washington, may require you to use their state-specific form or provide additional information.

Oregon does not have a sales tax exempt certificate.

If you're an Oregon resident working or shopping in a state with a sales tax and want information about that state's sales tax policy regarding nonresidents, consult that state's taxation agency.

Oregon law doesn't allow you to reduce your Oregon taxes because you paid sales taxes in another state.????
The Wayfair decision and online sales tax

On June 21, 2018, the U.S. Supreme Court ruled a state may collect sales tax from taxpayers located outside the state if they are selling to state residents and there is a sufficient connection between the taxpayer and the state. For example, under the South Dakota law, a company must collect sales tax for online retail sales if:

The company's gross sales exceed $100,000, or
The company conducted more than 200 transactions to South Dakota.

Many other states are formalizing guidance through laws and regulations regarding collecting sales tax on online sales.

Impacts to Oregonians shopping online

The Wayfair decision does not affect Oregonians purchasing goods or services online because Oregon does not have a general sales tax.

Oregonians purchasing goods or services online don’t generally owe sales tax to another state, but exceptions may exist for other taxes. For example, when making online travel arrangements, you will be charged federal taxes on airline tickets and may be charged state and local taxes on your hotel or rental car.
Impacts to Oregon businesses selling products online

The Wayfair decision does affect Oregon businesses selling products online to buyers in a state, such as South Dakota, that requires online retailers to collect sales tax. These Oregon businesses will need to collect and pay sales taxes to the sales tax states, if they meet the requirements.

If you are an Oregon online retailer with customers located in a state with sales tax, we recommend you contact the state directly or seek legal advice on how to proceed with collecting and remitting sales taxes to those states with a requirement to collect sales tax on online sales to consumers in their state.?????"


But in reality, many states will not charge "sales tax" to non residents unless the state has an agreement with the state the buyer is resident and the seller would have to collect the taxes and forward the collected tax to the state of the buyer..

In some cases the selling state will collect a sales tax for a non resident but not forward the money especially if no agreement exists.. In that case the buyer will also have to pay sales taxes in their own state of residence..

But as someone has mentioned, a RV in a park or on land in California will need to register which means a proper title in the current owners name.. Generally most states will not transfer a title and get plates unless you are a resident of the state. Don't see this working very well.. This most likely is going to bite the OP in the behind..

I say, good luck to the OP, it will be a miracle if you manage to pull this off cheaper than just buying in Canada and paying the 12% sales tax there..

Only two certainties in life.. Death and taxes.. You will never get away free from those two items.

[Alan_Hepburn]

spoon059 wrote:
Wait... are you buying in Oregon and then parking it on a permanent site in California? If so I would just get a temp tag from the dealer when you buy it. No sense paying yearly registration fees for a vehicle that doesn't move. Again, I'm not familiar with Cali requirements. In Maryland, you don't have to have tags unless its moving down the road.

In California the vehicle needs either current registration, or if it's parked somewhere that is NOT a public roadway it needs to be placed in "Permanent Non-Operational" status. But then it cannot put so much as a shadow onto a public roadway without obtaining a single-trip permit. When you park it in a trailer park it will definitely require insurance, and MAY require current registration - that's up to the trailer park.

As for the legality of an out-of-country purchaser buying in one state and parking in a second state - I don't know if that's even possible; buying shouldn't be a problem, but I think most states require you to be a resident in order to title, and register, a vehicle.

[spoon059]

Wait... are you buying in Oregon and then parking it on a permanent site in California? If so I would just get a temp tag from the dealer when you buy it. No sense paying yearly registration fees for a vehicle that doesn't move. Again, I'm not familiar with Cali requirements. In Maryland, you don't have to have tags unless its moving down the road.

Yes, you pay sales tax on it. I'm not sure how taxes will work in Oregon/Cali in your scenario. Usually you pay sales tax when you buy (from a dealer), and they send that money to the state where you register the vehicle. In your case, if you don't have to register the vehicle, I'm not sure how that would work...

Insurance is insurance. My truck's insurance covers the trailer when I'm driving. My RV insurance covers the trailer when its parked. Now, whether they will let you only buy 1 months worth of insurance is another question.

In the end, it begs the question... why not just buy in California and have it delivered?

[Gdetrailer]

Super_Dave wrote:
Bought my boat in Oregon and paid my sales tax in Utah. The tax is only on what is registered. The bank holds the title and no relationship between title and taxes.

OP LIVES IN and is a RESIDENT OF CANADA.

Would have CANADA LICENSE AND INSURANCE.

Wants to buy in Oregon for some reason.

Wants to MOVE RV from Oregon to CALIFORNIA.

This is not straight forward as a US Citizen buying in Oregon and moving it to California.

I suspect OP will not be able to transfer the title, period and would end up with nothing more than a Bill of sale.

Highly doubt California will transfer a title from out of state to an non resident to California's DMV system. May even have a difficult time buying a new RV in Oregon because of the title paperwork that must be done, used not so much a problem there.

Of course if OP is planning to move the RV to California to a permanent site they might be able to get away with never transferring the title and thus avoiding California' taxes and registration costs but the OP WILL need to get some sort of temporary tags to move the RV from Oregon to California which is going to cost money and most likely not work if Oregon requires a Oregon DL and insurance just to issue a temp tag..

It is a no win situation.

Op could buy in Oregon, never transfer title, nor register title, nor get tags and pay to have a heavy hauler with a flat deck low boy trailer and drop off at the exact spot without the need for title, title transfer and paying taxes.. But, a Heavy hauler with a low boy flat deck could cost a couple of thousand... And if they ever decided to sell they are stuck with an untitled trailer that they can not sell because of the messed up title.

Many ways to do it and most workarounds will in the end cost more than just buying what they want where they currently live and drive it to where that want it to stay..

The reality of it is if the OP were to buy a $20K RV, they would be on the hook for $2400 in taxes (12%) where they currently live..

Even IF they could find a way to work this third party deal out, the chances are they WILL spend MORE than the measly $2400 in taxes they would owe if they bought in their Country..

Not even sure why they picked Oregon other than perhaps lower "sales taxes" perhaps?

[Super_Dave]

Bought my boat in Oregon and paid my sales tax in Utah. The tax is only on what is registered. The bank holds the title and no relationship between title and taxes.

[Gdetrailer]

Petethescot wrote:
Thanks for all of the replies. Seems I have a bit of work to do. One thing, I am not trying to avoid any taxes just want to figure out what I can or cannot do legally and if it is worth the hassle. Seems like the taxes would be paid in California. Up here in BC the taxes are 12% new or used. Was not sure if you bought used in US if it was cheaper tax rate if / when registered in California.

Seems to me you are trying to avoid SOME taxes.

I suspect, in the end it will cost you pretty much the same or more by the time the dust settles than if you just bought a RV in Canada and brought it to California..

Assuming you are planning to park the RV on land or a campground, right?

If so, unless there is a compelling reason to transfer the title and plate it for California the simplest and most likely cheapest way is to buy in your country even with paying 12% tax rate.

Buying in one state then titling in another can be a tricky process because each state has their own rules which must be followed to the "T".

Most states require one to be a resident of that state just to transfer the title to that state, let alone putting tags on it..

And for those who mentioned not worrying about transferring titles, well, the title shows your ownership..

Your ownership could be questioned at anytime and without a proper title in YOUR NAME you have no real proof other than a hand written "bill of sale" (which is questionable at best since anyone can make up a BOS) and you have also doomed that trailer in most states to scrap value.

No proper title = JUNK, it is very difficult and expensive to fix no title RVs so no resale value if OP changed their mind and wants to sell the RV down the road.

May even have difficult time getting insurance coverage which if you are planning to put in in a permanent park most parks WILL require you to carry insurance on it while it is in that park.

[msmith1_wa]

The answer to question depends on several things related to what you are going to do with the rv and your residency. Are you buying new or used? From a dealer or private party? What about titleing it in your home province?

You are going to have to have a title for it from somewhere, but not necessarily register it. That is likely when you will get taxed, if not done in Oregon.

I live in Washington and purchased my current trailer from a dealer in California and had it delivered to my house. The dealer gave me the option to pay CA sales tax on the purchase. I declined, because Washington tax on it would be higher and I would have had to pay the difference to WA upon titling it. My thought for doing this was I don't live in CA so if I am going to pay the same total in taxes why do I want to give that money to a state I don't live in. Something else I discovered when deciding how to get it to my house. Was that if I towed it home and spent the night in it while still in CA I technically would have been required to pay the tax to CA.

Since it sounds like you are planning to park it long term after it is in CA. I would be inclined to title it in OR and use trip permits to get to the final destination.

Most insurance companies will cover new vehicle purchases for a couple of days without being notified.

[Petethescot]

Thanks for all of the replies. Seems I have a bit of work to do. One thing, I am not trying to avoid any taxes just want to figure out what I can or cannot do legally and if it is worth the hassle. Seems like the taxes would be paid in California. Up here in BC the taxes are 12% new or used. Was not sure if you bought used in US if it was cheaper tax rate if / when registered in California.

[Grit_dog]

OP, are you planning on towing it around or parking it semi permanently?
If parking it, just drive it down, park it and don’t title/ license it.
If the dealer won’t let it go without doing the title transfer and registration, have a talk or walk. They can sell it to you with a bill of sale and an assigned title or mco if they choose to.

[Grit_dog]

ktmrfs wrote:

PawPaw_n_Gram wrote:
Sales Tax - you pay the legal sales tax where you buy a vehicle, and if you register the vehicle in a different state - you owe tax there.

Not necessarily true. recently we were looking at new vehicles and looked at buying in washington because they had one we wanted. Live in oregon. At least in WA if you purchase in WA are not a WA resident and are going to register in oregon (maybe other states as well) no sales tax due in washington. And oregon has no sales tax. So where we bought OR or WA didn't make any difference.

I believe in WA you pay the sales tax when you register the vehicle. So if it isn't registered in WA you won't pay sales tax.

Not sure how other states handle it.

You’re both right. Depending on the circumstance or state. Lots of time if you take delivery in the purchasing state (and live in another state ) you pay the tax in state of purchase but can credit it to your registration state. If you pay more than due, you’re out the difference.
Last new trailer I bought (coincidentally it was a trailer, same for vehicles, anything g that requires title and/or registration, I bought out of state. Told dealer I didn’t want to pay tax, he said he’d have to deliver it out of that state. He was right, but we agreed that I “took delivery” out of his state. Even though I didn’t.
I wasn’t planning on titling it as I only needed it a couple weeks and bought it cross country from my home state, and had no internet in paying tax and registration in my state just to sell it immediately upon returning to my home state.