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Buying California car, trying to avoid double TAX

Discussion in 'Midwest/Great Lakes' started by Kosh, Oct 8, 2017.

?

Is it possible to get the extra %3.5 sales tax refunded (9.5% LAX - $6 DTW)

Poll closed Oct 15, 2017.
  1. Yes, its possible

    50.0%
  2. Not in Michigan

    0 vote(s)
    0.0%
  3. I don't know or some other response

    50.0%
  1. Kosh

    Kosh Member

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    Location:
    Ann Arbor MI
    Looking to buy a Tesla from some random dealer in CA. It has all the options I want at a good price. I live in Ann Arbor Michigan.

    Flights to LAX look cheap and I have a lot of vacation to burn. So I would prefer to fly in to LAX and pick it up. But if I take possession in California then I need to pay California sales tax. Shipping is also going to be expensive option.

    The dealer mentioned something about one of his clients in Nebraska. He got the extra tax in California refunded somehow.

    Does anyone know how that would work?
     
  2. BrettS

    BrettS Member

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    I looked into this briefly when I bought my car and it’s my understanding that it depends on the state you live in. Some states will allow you to claim a credit for the tax you paid in California to offset the cost of tax in your home state and some states will not allow this. I don’t believe that any state will give you a refund for extra tax paid.

    For example, say the California sales tax is 9.5% and your home state sales tax is 6%. Some states may allow you to show that you paid tax in California,and since you paid more than your home state tax rate you won’t need to pay tax in your home state, but you would not get the 3.5% back. Some states don’t even allow you to do this and you would need to pay the 9.5% in California, then the full 6% in your home state.
     
    • Like x 1
  3. kev1n

    kev1n Member

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    when i bought a car from seattle, i did not pay any tax to seattle, i paid CA tax when i registered the car in california. shouldnt it be the same?
     
  4. cgiGuy

    cgiGuy Active Member

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    The other thing to keep in mind is that extended warranties are not available after a Tesla has gone through a dealer. So, if it has low miles, might not be a big deal. But I'd talk to Tesla about what your future warranty options are before purchasing from a dealer.
     
  5. Kosh

    Kosh Member

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    Location:
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    California has very strict rules about taking possession of the car and paying California tax. most states don't which is why you didn't have a problem buying in Seattle and paying when you got to CA.

    Its less than 4 years and a good bit less than 50k miles. How would I contact tesla to see what my options are about extended warranties?
     
    • Informative x 1
  6. cgiGuy

    cgiGuy Active Member

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    (877) 798-3752
    ESA2.JPG
     
  7. Kosh

    Kosh Member

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    Sounds like I won't be able to purchase an extended warranty. How much would an extended warranty cost to purchase anyway?
     
  8. kort677

    kort677 Banned

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    if you get a temp tag in CA and register the car in your home state CA tax should not be applied only the state that the car gets registered in is entitled to the tax. this is how it usually works, then again CA has many unique laws.
     
    • Disagree x 2
  9. gaswalla

    gaswalla P4201/85/airsusp/pano/19i

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    why not buy from another (private party) and use the tax savings to buy an extended warranty?
    The dealer is the one who ought to be helping you with advice.. their fault for basing their business out of California
     
  10. bonnie

    bonnie Oil is for sissies.

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    @Kosh: California is very strict about paying sales tax if you take delivery in California. If the dealer is willing to ship the car to you, consider flying out, test driving it, then concluding the sale after you get home. Have it shipped to your home.
     
  11. Kosh

    Kosh Member

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    If the car is still under warranty and I do PPI (Pre-Purchase Inspection) at a third party do you think I should still fly out there and check it out?
     
  12. bonnie

    bonnie Oil is for sissies.

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    I would. I guess it depends on your comfort level.
     
  13. Nosken

    Nosken Member

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    If you could get the dealer to physically deliver the car to you in Nevada, and have the transaction notorized, you should be OK. My father did this for a vehicle 6 years ago. This is something that people buy large expensive motorhomes do quite often.
     
  14. Kosh

    Kosh Member

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    The car I want is very specific. I would love to not buy in California but it doesn't seem to be in the cards. I think delivery to Nevada is the best bet.
     
  15. Kosh

    Kosh Member

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    So I talked to Michigan DMV. They said as long as I can prove I paid CA sales tax I don't have to pay Michigan Sales tax. The dealership in CA came down in price enough for it to be worth it to me to just fly out there and pick up the car directly from them. So this is really my best option.
     
    • Like x 1
  16. Lloyd

    Lloyd Well-Known Member

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    This is the correct answer. If the car already has tags, then temporary tags are all that is necessary for a used car.
     
  17. kort677

    kort677 Banned

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    mr bertx, could you explain the dislike you used?
     
  18. outdoors

    outdoors Supporting Member

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    Would like to revisit. I know it maybe in other areas within forum. Can one take delivery prepaid with registration and plate in hand to show tax paid in other state specifically in CA?

    Example would be at Fremont. Pay for car. Get invoice and title. Go to Secretary of State of home state with POI get plate and registration. Show up. Drive car home.

    I have done this before in the dealer concept, but not in CA.
     
  19. Az_Rael

    Az_Rael Supporting Member

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    Key point. CA is actually unique in this and a very aggressive state when it comes to getting taxes. Unless you ship the car out of state, you have to pay CA sales tax.
     
  20. Kosh

    Kosh Member

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    I ended up paying and registering the Car with California plates. Michigan basically lost out since they don't have a way to easily buy a Tesla in this state. Yes, I paid significantly more tax but in the end as part of the green mission I think it was worth it.
     

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