CDH911C2S

So---a question for the forum...I am a California resident. I have a used 911 that I am trading in on a new 911 at an Arizona Porsche dealer.

The AZ dealer is giving me sales tax credit on my trade in value towards the sales tax credit of the new 911.

The question to this group...Does the CA DMV honor the AZ Sales Tax credit when I go to register the new car in CA? Or should I expect to pay the full amount of sales tax on the purchase price?


Cheers

Archimedes

Fairly certain you will have to pay the full tax in CA.

Sidvicious7

Similar case with my purchase from the State of Arizona.

As a resident of California I did not pay sales tax to the state of Arizona. However you will be responsible to pay the CA DMV sales tax upon registering your car. There is also a timeline in which you need to register your car to avoid penalties. I also had to make an appointment with the bureau for inspection before registering the car. If the car was previously registered a smog inspection is required prior to registering the car in CA. I suggest you address these questions with the dealership. I also suggest you go in to the DMV website in an effort to answer some of your questions.

mikex25

+1 no way around if, being in CA your going to always have to pay the full tax.

eddielasvegas

As an AZ resident, I know if I pay CA sales tax that is then a sales tax credit when I register the car here.

If my taxes would have been lower in AZ, I would not get any money back if I paid more sales tax in CA.

I would think this would work the same whether it's CA to AZ or AZ to CA.


Eddie

fuddman

From the CA DMV website:

" If you paid sales/use tax to another state, you may receive credit toward California sales/use tax not to exceed the California tax. "

https://www.dmv.ca.gov/portal/dmv/de...t_facts/ffvr34

Glad you brought it up. Need to keep that one in mind.

MJG911

I believe the OP is referring to only paying sales tax on the difference between his trade and the new car. I haven't lived in california in a while, but they didn't do that before and I don't think they do now either. It was a huge, happy surprise when I moved to Georgia and found we do it this way.

fuddman

Regardless, if he's looking for the accepted answer, then that's what I provided.

There is, actually, a second way. Which is, when he's filling in the DMV form, where they ask "how much did you pay for the car," put in the amount on the bottom line of the sales contract provided by the dealer. And act as innocent as possible.

CDH911C2S

Thank you for the input all---my question has been answered. Gotta pay the tax man In CA when I register---


Cheers

Dewinator

Just charging the country's highest state income tax clearly isn't enough for CA.

At least you don't live in Seattle and have to pay 5% of your car's value every year for a stupid train... or worse yet live in Tacoma where they don't get the train but still have to pay the 5% for it.

Michael_s

Is the 5% the current value i.e. depreciated value or the cost new? Do many people register out of state, i.e. trusts that I have seen set up to register cars in I believe AK and UT where it seem to be legal.