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Vehicle sales tax question out of state?

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Old 10-21-2003, 06:59 PM
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SANDOVAL
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Default Vehicle sales tax question out of state?

I am about to make a dealer purchase on a '01 996 out of state (I am in CA, USA). I am financing a portion of the purchase price. The dealership (NJ) has figured in the sales tax on the contract. Thus it will be rolled into the financing. I have only bought and sold vehicles in the state I live in.

My question: If they are covering the tax on the contract, I am not going to be dinged again once I go to register the car right? Also when I pay the registration fees if the tripple car tax goes away in a couple months will I get a check back for the difference?

Thanks for the info.
Old 10-21-2003, 08:28 PM
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Speed
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I don't understand why the NJ dealer is collecting sales tax on a car that's going to CA unless you're registering first in NJ and then taking it to CA and reregistering. In that case, you just show the CA motor vehicles dept. that you paid NJ tax and I think they just charge you for any difference between NJ's rate and CA's rate. I'm from NY and I've bought cars in NJ. . . The dealer just charged me the price of the car and gave me a temporary registration good for 10 days. I then registered the car in NY and paid NY sales tax. In your case, if you want to finance the sales tax make sure CA will give you credit for it when you register the car in CA.
Old 10-21-2003, 09:24 PM
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I am purchasing a car in Oregon for registration in California. The financing is going to include tax and registration in California. The dealer just needs to know the exact amount of the tax and license in California, then they will cut a check to CA DMV which I will hand carry to the DMV when I return to CA. You can get the exact amount for the tax and registration from your local DMV office once you know the exact price of the car.
Old 10-21-2003, 09:51 PM
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RWO
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Make sure that you have an agreement that the Dealer is responsable for paying the taxes no matter what happens. I did have one case where the tax was not paid on a car I purchased. The Dealer used a 3rd party to process the title/tax payments. That company had done the title work and not paid the taxes. The state sent me a "demand" letter for the unpaid tax. It took a number of calls and conversations to get the Dealer to pay up. He wanted me to deal with the 3rd party. His "agent" failed to pay the tax, it was his problem, but he wanted to make it mine.

Just make sure you have it in writting that they are responsable for paying the taxes.

Roy
Old 10-21-2003, 11:05 PM
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Dirk Tanner
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You may want to check CA DMV's website:
http://www.dmv.ca.gov/
I've been under the impression that taxes/reg fees were paid to the destination state, not the state of origin
(not to be confused w/ the state of oregon).
Good Luck,
-DT
Old 10-22-2003, 10:54 AM
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Alfie
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As a dealer, If I am registering the car for you, I collect the exact amount of tax due to the state I am registering the car in, usually rolled into the contract. If you are registering the car yourself, I collect no tax, as you need to pay it when you register the car. However, some states require that the selling dealership collect all taxes, pay them in the state the car is sold in, get a receipt that x amount has been paid. If your state has a higher tax rate, you pay the difference, if your state has a lower tax rate, you get it back. That doesnt happen often though. Hope that helps.
Old 10-22-2003, 11:54 AM
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I bought a car in Ohio and signed an exemption from sales tax form for the Ohio taxes. Then I drove the car back to MA and paid the regular MA sales tax on the car.



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