Out-of-state purchasing. Making sure I don’t get screwed on taxes.

[rent]

Not sure how it is in Az but I just bought mine from gupton in tn and they didn’t charge tax. I just had to sign a form veriying to the state of tn that I would take care of it in tx. Gupton is going to send me all the necessary forms to take to the dmv. couple of calls to az and ca tax offices should confirm if you need to pay the dealer the tax or not.

Yes, we have it good here between TX & TN. Only need to do the leg work of filing title and registration with county tax office, but none of that reciprocity stuff like in CA/NV/AZ.

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[alksion]

Wow! I posted this during work. Didn’t expect to get so many responses so fast. Time to comb through these now.

 

[galleywinter]

Can't help with Cali or Arizona but I ran into an issue. Arkansas gives a tax credit that saves a lot of money. If you get your new vehicle within 45 days of selling your used vehicle you only pay on the difference. Sold my truck for $35k to Vroom and below invoice price is $56k on new XR Rubi. So only paying taxes on $21k instead of the full $56k is huge, but...... Sold my truck June 26th and ordered 7/12. I knew that no way would it make it before the 45 days. I'm still sitting in D1 and it's 50+ days. Before I pulled the trigger I checked with the revenue office and they said that I could use my sold order date as my sales date. Not paying taxes at the dealer. I'll pay back home at my local revenue office. Another advantage ordering from the Tennessee dealer over the Missouri dealer for me. Missouri was going to make me pay sales tax at dealer. Told him I don't live in Missouri, not paying taxes in Missouri. He said it would be required. Gupton(Nashville) said he didn't care, none of their business where I pay them. He would roll them in or I can pay when I get home. Hard pass on financing sales tax.

 

[alksion]

I’m just going to restate something dumb, not trying to insult your intelligence.
It sounds like of the Tax Title and Licensing (TTL) from the sale, you are paying 6.3% in AZ taxes. This is DEDUCTIBLE from your state taxes in CA. Meaning, you must immediately pay the difference if CA taxes are higher (pretty sure they are). Keep in mind there can be multiple brackets. I know CA used to slap on an extra tax called a luxury tax to any vehicle sold over a certain dollar amount.
So to finalize registration, you must pay the difference plus all local (city, county, regional) fees/taxes/assessments. The AZ local stuff is just lost, doesn’t count towards anything. If you don’t or can’t, your car is unregistered. Plus smog as mentioned above, but I think most mew sales don’t require a check for several years as long as the vehicle VIN shows CA compliant (50 state, whatever).

See this is something I’m worried about. I pay the AZ state tax and then comeback to CA and they tell me I owe the full amount of CA state tax. I’ve heard this has happened to a few people.

 

[rent]

Can't help with Cali or Arizona but I ran into an issue. Arkansas gives a tax credit that saves a lot of money. If you get your new vehicle within 45 days of selling your used vehicle you only pay on the difference. Sold my truck for $35k to Vroom and below invoice price is $56k on new XR Rubi. So only paying taxes on $21k instead of the full $56k is huge, but...... Sold my truck June 26th and ordered 7/12. I knew that no way would it make it before the 45 days. I'm still sitting in D1 and it's 50+ days. Before I pulled the trigger I checked with the revenue office and they said that I could use my sold order date as my sales date. Not paying taxes at the dealer. I'll pay back home at my local revenue office. Another advantage ordering from the Tennessee dealer over the Missouri dealer for me. Missouri was going to make me pay sales tax at dealer. Told him I don't live in Missouri, not paying taxes in Missouri. He said it would be required. Gupton(Nashville) said he didn't care, none of their business where I pay them. He would roll them in or I can pay when I get home. Hard pass on financing sales tax.

Unfortunately OP lives in CA which does not have any provision for sales tax credit on trade in or selling previous vehicle.

 

[alksion]

I'm following as interested - but something about the way that is written doesn't make sense with it not being applied to your CA taxes.

Are they saying it would be different if you were not picking it up - ie being shipped to you?

I also recall seeing someone (perhaps on 4xe thread) posted they had an agency do it all for them for a fairly small fee, to save you time.

Do you have that agency information?

 

[zrickety]

I am picking up my 392 a week from Friday. I live in California and I will be buying the car in Scottsdale Arizona.

I’ve heard of people getting screwed on the taxes, whether the dealer intentionally pulled one over or they messed up accidentally, I just want to make sure I’m not doing anything wrong.

This is the information I received from the sales manager. Can someone clarify what she means?

It depends on the dealer. My wife got screwed on her VW, but I hit a homerun with the Jeep. Just ask lots of questions, make sure they know the taxes for the county where you live.

 

[alksion]

That's how I understand it. For example, if you pay 6.3% tax in AZ, and CA tax is 15%, you will need to pay CA an additional 8.7%.

https://www.dmv.ca.gov/portal/how-to-9-register-a-vehicle-from-out-of-state-nonresident-vehicle/

So this is totally normal and acceptable? Just between NV, AZ and CA?

 

[Monster1926]

See this is something I’m worried about. I pay the AZ state tax and then comeback to CA and they tell me I owe the full amount of CA state tax. I’ve heard this has happened to a few people.

Take your PA to the BMV/DMV with you and show them you paid x amount of sales tax in AZ. You should have to pay the difference if theres reciprocity.

 

[rent]

See this is something I’m worried about. I pay the AZ state tax and then comeback to CA and they tell me I owe the full amount of CA state tax. I’ve heard this has happened to a few people.

Nothing to worry. See https://www.dmv.ca.gov/portal/handb...use-tax/credit-for-tax-paid-to-another-state/

Just make sure you keep paperwork from dealer clearly showing sales taxes paid to AZ.

 

[alksion]

Not sure how it is in Az but I just bought mine from gupton in tn and they didn’t charge tax. I just had to sign a form veriying to the state of tn that I would take care of it in tx. Gupton is going to send me all the necessary forms to take to the dmv. couple of calls to az and ca tax offices should confirm if you need to pay the dealer the tax or not.

Yeah I’ll reach out to both.

 

[alksion]

Your dealer will collect from you 8.05% of purchase price as sales tax paid to AZ (including city and county). Out of this 8.05%, 1.75% is city/county sales tax, which is the portion not "reciprocal" with CA. The remainder 6.3% out of the 8.05% is "reciprocal" with CA.

When you bring the vehicle to CA to register, let's say your sales tax rate is 8.25%, you will pay CA 8.25% - 6.3% = 1.95%.

In essence, you will have paid 8.05% + 1.95% = 10% in sales tax on this deal.

That makes perfect sense. Still going to confirm via both DMVs in AZ and CA.

 

[alksion]

Take your PA to the BMV/DMV with you and show them you paid x amount of sales tax in AZ. You should have to pay the difference if theres reciprocity.

Got it. Never heard of this before but also buying my first out of state vehicle. Makes sense now.

 

[Some Random Guy]

See this is something I’m worried about. I pay the AZ state tax and then comeback to CA and they tell me I owe the full amount of CA state tax. I’ve heard this has happened to a few people.

Look at @rent, post #14. You would only owe the difference of CREDITABLE amounts, not the full amount.

 

[alksion]

Nothing to worry. See https://www.dmv.ca.gov/portal/handb...use-tax/credit-for-tax-paid-to-another-state/

Just make sure you keep paperwork from dealer clearly showing sales taxes paid to AZ.

Thank you for that link from the DMV. That feels much better seeing that officially.

The dealer called me Monday and said they had my 392 and if could fly out the next day. I said hell yeah I can be there. I said you got MY 392 in early? The sales rep was like no we got a stingray one but you can have it. I’m like well it’s not my 392 so no thank you. It’s shit like that which creates distrust.

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