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AZ Buyer of CA Car - CA Tax?

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Old 04-10-2018, 11:45 AM
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CrossT
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Default AZ Buyer of CA Car - CA Tax?

The title is the question I have. Probably a common question, but one that I don’t seem to see a clear answer to...

I’m an Arizona buyer looking at a private party car in California. Arizona does not require a sales tax on private party sales, but California does. Will CA nonetheless reach out to me and require that a tax be paid? Or, is it just a question for the new registration state (AZ)?

thanks
todd
currently no Porsche
Old 04-10-2018, 12:04 PM
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Qwksnke
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Tax should only be collected for the state you reside in or where it will be 'tagged' If your state doesn't collect sales tax, you should be in the clear.

i live in Alabama but have bought several cars (including my Porsche) in Georgia. My tax rate on all I have been based off the state and county I live in since taxes are paid when I go to register. Since my local area is only 2.5% on auto sales. I am very thankful. LOL
Old 04-10-2018, 02:00 PM
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DesmoSD
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CA automobile tax is calculated based on your county and zip code. Since you're in AZ, you wouldn't be taxed.
Old 04-10-2018, 06:48 PM
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4Driver4
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How would California even find out about the purchase? What leverage would they have to get you to pay?
Old 04-10-2018, 07:15 PM
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doclouie
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I am from Texas and purchased my car from a dealer in California and drive it home two months ago. Like everyone has said you will pay tax when you register the car in your home state.
Old 04-10-2018, 07:51 PM
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okbarnett
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some times, usually, the selling dealer, in TX- will calculate the tax that you have to pay in your state, FL, and charge you for it in the deal. Then when you go to get your tag, the tax has been paid. FL will collect it from Tx
Old 04-10-2018, 08:41 PM
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alwayswantedone
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Same as above, bought a car out of California about a year ago. Paid Texas sales tax when I licensed it here. One of the few times I wished I could have paid CA tax instead!!!
Old 04-10-2018, 08:53 PM
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911wally
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I purchased mine is ca and registered it in Nevada. It was a private party sale and paid Nevada taxes only...
Old 04-11-2018, 01:28 AM
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Dennis C
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I bought a Porsche in California and drove it home, roughly ten years ago. As I recall, there were some odd laws in California that are important to understand. If you buy the car and take it out of state within 24 hours of the purchase, then you pay sales tax in the state where the car will be registered. If you wait for more than 24 hours, then you’re required to pay California sales tax. That may have changed, but that’s the way it used to be.
Old 04-11-2018, 01:46 AM
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dawgcatching
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Originally Posted by doclouie
I am from Texas and purchased my car from a dealer in California and drive it home two months ago. Like everyone has said you will pay tax when you register the car in your home state.
That is unusual. Every dealer in CA I have spoken with says "drive it off the lot and you have to pay tax, registered here or not". Typically in CA, you have to get the car shipped across state lines. Here in Oregon, people often have them dropped off in Klamath Falls and then driven north.
Old 04-11-2018, 03:48 AM
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larrysb
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Dealers in California have to collect the sales tax if you take the car off the lot, not sure about shipping out of state. Private parties do not have to collect sales tax and you pay when you register the vehicle in your home state. Other states have different rules, I bought a new Corvette in Louisiana a number of years ago and they didn't have to collect sales tax when I picked up the car and drove it home. I had to pay when I registered it in California.

I don't know the rules for cars, but California is sticky about sales/use tax on airplanes. As a private party seller, I wasn't required to collect the sales tax, but the buyer had to take the plane out of state immediately and can't return to California within 12 months. Otherwise, if they spot it, they'll send him a bill for the tax.
Old 04-11-2018, 08:59 AM
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jhbrennan
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Originally Posted by alwayswantedone
Paid Texas sales tax when I licensed it here. One of the few times I wished I could have paid CA tax instead!!!
Why...CA tax is 7.5% / TX tax is 6.25%.
Old 04-11-2018, 04:52 PM
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Darkhorse
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CA is funny about sales tax. I guess that state needs as much revenue as it can squeeze out of anyone with a pulse and a wallet. I bought mine last year from an individual in LA. I did a little research and this is what I discovered:

If you drive the car off after the purchase, even to drive it home to AZ or NV, you owe CA sales tax. But, if you buy the car in CA and ship it to another state, you do not. Then you simply pay to register it in your home state.
Old 04-11-2018, 06:49 PM
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jhbrennan
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Originally Posted by Darkhorse
CA is funny about sales tax. I guess that state needs as much revenue as it can squeeze out of anyone with a pulse and a wallet. I bought mine last year from an individual in LA. I did a little research and this is what I discovered:

If you drive the car off after the purchase, even to drive it home to AZ or NV, you owe CA sales tax. But, if you buy the car in CA and ship it to another state, you do not. Then you simply pay to register it in your home state.
Unless you're buying from a dealer - they are required to collect CA sales tax...but if they can deliver it to you in Nevada, they don't have to collect the tax. I was looking to buy a new Cayenne from a California dealer and driving it home to Texas - here is his response to my question regarding collecting the CA sales tax - "Yes, we can absolutely avoid CA sales tax by hauling it out of state on a truck."
Old 04-12-2018, 07:34 PM
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Kurt RSF
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Originally Posted by larrysb
Dealers in California have to collect the sales tax if you take the car off the lot, not sure about shipping out of state. Private parties do not have to collect sales tax and you pay when you register the vehicle in your home state. Other states have different rules, I bought a new Corvette in Louisiana a number of years ago and they didn't have to collect sales tax when I picked up the car and drove it home. I had to pay when I registered it in California.

I don't know the rules for cars, but California is sticky about sales/use tax on airplanes. As a private party seller, I wasn't required to collect the sales tax, but the buyer had to take the plane out of state immediately and can't return to California within 12 months. Otherwise, if they spot it, they'll send him a bill for the tax.
When buying an airplane, certain states have what's called a "fly-away" exemption. You can take delivery of the aircraft, fly it to another state immediately and not pay local/state sales tax where you took delivery. It's quite complex. I've done it twice, taking delivery of the aircraft in Charleston, SC, eventually bringing them into California after satisfying certain rules. If you qualify for the "interstate commerce" exemption or the "commercial operator" exemption and keep perfect records, you're exempt from California sales or use tax on the aircraft, as well.

I don't know if a similar exemption exists for buying cars in states other than where you reside; a "drive-away" exemption, if you will. I would think some states probably allow that.


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