Paying sales tax twice?
Thread Starter
Senior Member
Joined: Jun 2007
Posts: 288
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From: Ogden, Utah.
C32 ///AMG
Paying sales tax twice?
So I have come to a final negotiated sales price on a 04 e320 that is at a California dealership. I however, live in Utah. The salesman just informed me that I would have to pay California state tax on the car in order for me to drive it out of state. Then, of course, I would have to pay Utah state tax to register it here.
Anyone else purchased a car in California and drove it home out of state? He says that I could pay to have the car shipped, but I really didn't want to have to do that. I get to fly for free so I was just going to fly out, and drive it home. He also said (half kidding) that he could meet me at the Nevada state line to make the swap.
Any help would be appreciated.
Anyone else purchased a car in California and drove it home out of state? He says that I could pay to have the car shipped, but I really didn't want to have to do that. I get to fly for free so I was just going to fly out, and drive it home. He also said (half kidding) that he could meet me at the Nevada state line to make the swap.
Any help would be appreciated.
MBWorld Fanatic!
Joined: Jul 2004
Posts: 1,285
Likes: 395
You have to pay sales/use tax if you drive off the lot; if it's trucked or delivered out of state you don't have to.
However, check Utah's rules...they shouldn't charge you sales tax again. Doing the reverse (if you bought a car from a UT dealership, paid sales tax, and drove it to CA), CA would only charge the difference in tax to equal the CA tax rate.
However, check Utah's rules...they shouldn't charge you sales tax again. Doing the reverse (if you bought a car from a UT dealership, paid sales tax, and drove it to CA), CA would only charge the difference in tax to equal the CA tax rate.
MBWorld Fanatic!
Joined: Jun 2007
Posts: 1,936
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From: Huntington NY
S560
In NY a dealer can sell a vehicle w/o sales tax to an out of state resident. Call another dealer and find out if that is the case. You might be able to file for a refund, or Utah might apply the sales tax as a credit to your personal taxes. I would talk to another dealer, Cali's department of taxation, or a CPA...
MBWorld Fanatic!
Joined: Nov 2001
Posts: 4,260
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From: Philadelphia area
2010 ML550, 2010 E350 4M, 1966 Corvette Convt C2
Actually the dealer is correct. I have never purchased a car in CA but over the years I have bought aircraft there and even as a dealer with a sales tax exemption in PA unless I had the aircraft delivered to me out of CA they want to collect the tax as they have no reciprocity with PA. After the purchase I can petition the state of CA for a refund and I did that once but it took 2 years to get my refund. What I did was pay the seller to hire a crew to deliver it to me in Las Vegas and I took it back to PA from there. It was money well spent. CA is not very business friendly.
Super Member
Joined: Sep 2005
Posts: 723
Likes: 32
From: Central Jersey
2003 E500, 2004 G35X
I totally agree! If a car is sold 5 times in NJ, the state collects the damn sales tax 5 times. I wonder why people don't complain about this kind of taxation. I think it's the worst kind of taxation in the country, and I have lived overseas before and no other country does this to its citizens.
Super Member
Joined: Mar 2006
Posts: 606
Likes: 4
From: Bellevue, WA
.... nothing to brag about, it is a previous model....
hmm... I wonder why no one get pissed paying tax on toilet paper?
Correct me if I am wrong...
1.You buy a roll of toilet paper, you got tax on.
2.Store who sold you that roll got tax on.
3.Transportation deliver that roll to the store got tax on.
4.Factory that manufacture that roll got tax on.
5.Company owns that factory got tax on.
Oh wait..it is not over yet.....
After you wipe your *** w/ that roll, you also got tax on.
1. Garbage disposal
2. water sanatisation
3. And bunch of name you have no idea what that mean in your bill.
Now you wonder why a hot dog cost $1.50 where other countries you can have a decent lunch for same price?
Oh..come on. Someone got to pay for those nice shinny laser guided missles right?
Correct me if I am wrong...
1.You buy a roll of toilet paper, you got tax on.
2.Store who sold you that roll got tax on.
3.Transportation deliver that roll to the store got tax on.
4.Factory that manufacture that roll got tax on.
5.Company owns that factory got tax on.
Oh wait..it is not over yet.....
After you wipe your *** w/ that roll, you also got tax on.
1. Garbage disposal
2. water sanatisation
3. And bunch of name you have no idea what that mean in your bill.
Now you wonder why a hot dog cost $1.50 where other countries you can have a decent lunch for same price?
Oh..come on. Someone got to pay for those nice shinny laser guided missles right?
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MBWorld Fanatic!
Joined: Mar 2004
Posts: 5,017
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From: Ft. Lauderdale Area, USA
2015 ML 350
In NY a dealer can sell a vehicle w/o sales tax to an out of state resident. Call another dealer and find out if that is the case. You might be able to file for a refund, or Utah might apply the sales tax as a credit to your personal taxes. I would talk to another dealer, Cali's department of taxation, or a CPA...
If the law is different in CA, why couldn't you get all the paperwork, register the car in UT & arrive at the dealership with registration & plates to drive off. I also can't believe that CA doesent have "Transporter Plates" (a 30 day temporary registration & papers for the rear window or cardboard plate to deliver a vehicle to an out of state neighboring state purchaser.)
Last edited by Barry45RPM; Jul 2, 2007 at 05:19 PM.
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MBWorld Fanatic!
Joined: Mar 2004
Posts: 5,017
Likes: 16
From: Ft. Lauderdale Area, USA
2015 ML 350
Here, every time a car is sold to a different owner, Sales Tax is collecte on the sale price the new owner paid. It IS unfair & the state IS collecting too much tax on the same vehicle.
MBWorld Fanatic!
Joined: Nov 2001
Posts: 4,260
Likes: 6
From: Philadelphia area
2010 ML550, 2010 E350 4M, 1966 Corvette Convt C2
Keep in mind that on a car purchase with a trade in you only pay the tax on the difference. As far as toilet paper in PA that is not taxed nor is transportation if charged. Many people here in SE PA register in Del where there is no sales tax BUT if they get caught or an insurance problem presents itself they get socked with Treble damages. With aircraft most people register in Del and even rent hangar space there but here again if the aircraft is caught in PA for any length of time other than in and out the damages apply. Onbe of my customers had that happen and fought it and lost after a year of in and out of court. The tax amount at that time on that aircraft was over 120K. They have since moved their corporate headquarters to Del.
Member
Joined: Jun 2007
Posts: 129
Likes: 0
From: Bethesda, MD
2003 E500 Sport, 1995 SL320
i bought my car in Virginia and registered it in Maryand (where i live)
i negotiated the car down to the price i wanted, and then told the guy i would handle all my own paper work and get the title and tags myslef.
i left the dealer paying only the vehicle price. all he gave me was a title and a pair of Virginia temp tags. i took the vehicle for MD inspection myself, and then took all the papers to the DMV. I paid the DMV directly for the tax, title, and tag fees. ( i saved the dealer processign fees and all that BS )
if this is legally possible in cali (which im sure it is), then it'll just be a matter getting the dealer to do this for you. if the dealers give you any greif, tell them its like he's doing a dealer trade (something dealers do almost everyday, and without headache)
just my $.02
hope it helps
i negotiated the car down to the price i wanted, and then told the guy i would handle all my own paper work and get the title and tags myslef.
i left the dealer paying only the vehicle price. all he gave me was a title and a pair of Virginia temp tags. i took the vehicle for MD inspection myself, and then took all the papers to the DMV. I paid the DMV directly for the tax, title, and tag fees. ( i saved the dealer processign fees and all that BS )
if this is legally possible in cali (which im sure it is), then it'll just be a matter getting the dealer to do this for you. if the dealers give you any greif, tell them its like he's doing a dealer trade (something dealers do almost everyday, and without headache)
just my $.02
hope it helps
MBWorld Fanatic!
Joined: Nov 2001
Posts: 4,260
Likes: 6
From: Philadelphia area
2010 ML550, 2010 E350 4M, 1966 Corvette Convt C2
i bought my car in Virginia and registered it in Maryand (where i live)
i negotiated the car down to the price i wanted, and then told the guy i would handle all my own paper work and get the title and tags myslef.
i left the dealer paying only the vehicle price. all he gave me was a title and a pair of Virginia temp tags. i took the vehicle for MD inspection myself, and then took all the papers to the DMV. I paid the DMV directly for the tax, title, and tag fees. ( i saved the dealer processign fees and all that BS )
if this is legally possible in cali (which im sure it is), then it'll just be a matter getting the dealer to do this for you. if the dealers give you any greif, tell them its like he's doing a dealer trade (something dealers do almost everyday, and without headache)
just my $.02
hope it helps
i negotiated the car down to the price i wanted, and then told the guy i would handle all my own paper work and get the title and tags myslef.
i left the dealer paying only the vehicle price. all he gave me was a title and a pair of Virginia temp tags. i took the vehicle for MD inspection myself, and then took all the papers to the DMV. I paid the DMV directly for the tax, title, and tag fees. ( i saved the dealer processign fees and all that BS )
if this is legally possible in cali (which im sure it is), then it'll just be a matter getting the dealer to do this for you. if the dealers give you any greif, tell them its like he's doing a dealer trade (something dealers do almost everyday, and without headache)
just my $.02
hope it helps
MBWorld Fanatic!
Joined: Jun 2007
Posts: 1,936
Likes: 350
From: Huntington NY
S560
Back on topic, I have heard Cali won't even save the tax on trade in values. It is coming to point of citizen revolt, taxation has reached such a viscious level I fear for the future, if there is one...
MBWorld Fanatic!
Joined: Jul 2004
Posts: 1,285
Likes: 395
Thread Starter
Senior Member
Joined: Jun 2007
Posts: 288
Likes: 0
From: Ogden, Utah.
C32 ///AMG
After further investigation I found out that Cali tax must be paid on the purchase price. However when I register the car in Utah, I just have to pay the difference. The tax where I live in Utah is 6.6%. The car is in San Francisco. 8.25% tax there. A difference of $462 and Utah isn't about to give me a refund for the difference.
I had already negotiated a decent price and the dealer won't come down any further.
Desicions....
I had already negotiated a decent price and the dealer won't come down any further.
Desicions....
Almost a Member!
Joined: Mar 2007
Posts: 29
Likes: 0
From: Reno
2006 ML-350 and 2007 ML-350
After further investigation I found out that Cali tax must be paid on the purchase price. However when I register the car in Utah, I just have to pay the difference. The tax where I live in Utah is 6.6%. The car is in San Francisco. 8.25% tax there. A difference of $462 and Utah isn't about to give me a refund for the difference.
I had already negotiated a decent price and the dealer won't come down any further.
Desicions....
I had already negotiated a decent price and the dealer won't come down any further.
Desicions....
The difference in sales tax, 8.5% verses 7.35% came to $546 on one, and $557 on the other. There are several MB dealers in the Bay Area, while the distance to the next dealer from Reno is 110 miles, and owned by the same company. SF Mercedes offered several thousand on each under what I could do locally.
I see two choices.............Have the dealer send an employee to drive the car to the Reno airport and buy a return ticket for him, or have the dealer truck the car to the Reno airport where you could pick it up. I myself would prefer trucking rather than trust it to an unknown driver..........Perhaps you could obtain a Utah transport permit to avoid any hassle with the Nevada or Utah Highway Patrol.
Last edited by Retiree; Jul 3, 2007 at 11:08 AM.
Super Member
Joined: Sep 2005
Posts: 723
Likes: 32
From: Central Jersey
2003 E500, 2004 G35X
Costco, $1.50 buys a hot dog and a 32 oz. soda, I know you said a DESCENT lunch, but in a pinch for time I have have a few of those dirty water dogs and I hate to admit it, but they are good...
Back on topic, I have heard Cali won't even save the tax on trade in values. It is coming to point of citizen revolt, taxation has reached such a viscious level I fear for the future, if there is one...
Back on topic, I have heard Cali won't even save the tax on trade in values. It is coming to point of citizen revolt, taxation has reached such a viscious level I fear for the future, if there is one...
And don't forget the free refills of the soda! I like their hot dog once in a while, too!
