daddyscar

Hopefully nobody closed on $100k 911 in CA today because our sales tax drops back down by 1% tomorrow. If you were on the fence it will cost you $1k less tomorrow

Mike in CA

Plus the reg fees drop by 50% too.......

Edgy01

About time!!

gota911

That's great news for the Cali folks.

I recently relocated from Texas to SC. I just found out that SC state auto sales tax rate is 5.00%, up to a MAXIMUM of .... $300.00!

DHC

Is this a temporary reduction or a scheduled, "permanent" drop?

Leader

While it's an "expired" tax law that drops the sales tax and the vehicle registration fees, I'd bet neither one stays down permanently.
This should be a very good weekend at all car dealers.

MagnusB

Are you kidding me?

MagnusB

Does that affect the DMV sales tax as well?

daddyscar

Yes, includes sales on cars. If you purchased or financed your car, than sales tax is based on transaction date. If you leased, your monthly payment will go down a little this month. If you just purchased your car, hopefully the higher tax rate you paid was offset by a better month end deal. Another plus, premium unleaded finally dropped below $4/gal.

Leader

It's the general state sales tax that's dropped 1%, so, yes, it does affect the "DMV sales tax" when you buy/sell a used/new car. It's all just one tax - the state sales tax.

pissedpuppy

seriously? you sure about that?

Mike in CA

Yup. The whole budget thing here in CA is a major CF, just like elsewhere, but the latest info is that both sales tax and DMV reg fees will return to pre-2008/2009 levels this July 1. Gov. Brown had wanted to extend the sales tax and fees or bring it to a referendum, but was unable to do either so they have expired. The value based portion of the fees will drop from 1.15% back down to .65% (so actually not quite half). My understanding is that the actual reg fee will go up by $12 but that's peanuts compared to the value portion on cars like ours.

Zeus993

I don't get the theory here. I understand that CA is going broke and yet they lower taxes? I expected them to go high like they have here in Canada. We pay a hefty 12% here in BC.

Skibum

California lowers and Connecticut raises.
Both ideas simply cannot be right.

Mike in CA

The measure which raised the sales tax by 1% and increased value based DMV fees back in 2008 was set to expire on July 1st. Governor wanted to put the extension of the taxes/fees to a vote via state wide referendum but that move was able to be blocked by a minority in the Legislature since it takes a 2/3 majority to approve any tax related measures. There was no other option so the increase expired by law. Our system is unable to function because politicians take intractable ideological positions that eliminate the possibility of compromise, regardless of the circumstances.