Buying new from out of state - where to pay tax

[BBQ-ClassB]

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There is a little known law in California...

-- you have 6 months to register a vehicle.


:-D

Correction -- if you are bringing in a vehicle from out of state, you have to declare it within 30 days.

 

[Phoebe3]

Ok. We are CA residents who intend to purchase a new RV from a dealer in Arizona. I've spoken with the dealer, looked up AZ rules and called the CA Department of Use Tax. Here's how it works:

When we purchase the RV, the Arizona dealer collects AZ sales tax, which is lower than the CA tax. This tax is listed on the Purchase agreement. We then take the purchase agreement with us to the California DMV. We receive credit for the tax already paid in AZ and just owe the additional tax that is due in our area.

So if our tax is 8.25% and the AZ tax is 7.5%, we will pay the 7.5% at the time of purchase and an additional 0.75% when we register the van in CA.

Based on the fact sheet from the AZ DoR, this process is true for a dozen states with higher sales tax than AZ.

 

[Phoebe3]

Now I've called the DMV and I'll post this in case it is useful for others.

Assuming the RV is on a chassis that is 50-state compliant (I don't know what happens for those that aren't because I didn't ask); once I have purchased my new RV from AZ, I have 20 days to register it. Before I can register it, even though it is a new vehicle, I need to get a smog check from the county in which I intend to register it. Furthermore (here's the good news), according to the DMV, even though the RV is on a chassis that might be considered commercial because of the weight, because it is outfitted for human habitation, it is considered a passenger vehicle (automobile) for registration purposes.

So for the benefit of others, the sequence looks like this if you are a California resident purchasing from AZ:

1. Ensure chassis is 50-state emissions compliant.

2. Purchase vehicle. Pay AZ sales tax, but do not pay AZ registration.

3. Obtain smog check from the the county where you are going to register the RV.

4. Within 20 days of purchase, take smog certificate, bill of sale and proof of AZ sales tax paid to CA DMV. Pay difference between CA sales tax and the AZ tax already paid and pay registration costs for a passenger automobile. Be sure to take proof of insurance.

If it turns out to be different than this in actual practice, I'll post the corrections in this thread.

Thanks to everyone who directed me to places where I could get this information!

 

[BBQ-ClassB]

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Thanks for the note.

What about the transit between AZ and CA?

What do you need to do?

Do you use a temp dealer plate?
With temp insurance?

 

[Phoebe3]

I have a quote from my insurance company, who will start when I tell them I'm going to pick up the van. Thus it will be fully insured as soon as I pick it up. My company will insure even though I don't have it registered - there is a short grace period.

The dealer will put temporary plates on it. They say the plates are good for 90 days, but CA DMV begs to differ and will be happy to charge me late fees if I don't get it registered in the 20-day window.

 

[BBQ-ClassB]

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Good. Looks like you are all set.

 

[cruising7388]

I have a quote from my insurance company, who will start when I tell them I'm going to pick up the van. Thus it will be fully insured as soon as I pick it up. My company will insure even though I don't have it registered - there is a short grace period.

The dealer will put temporary plates on it. They say the plates are good for 90 days, but CA DMV begs to differ and will be happy to charge me late fees if I don't get it registered in the 20-day window.

Well, does CA DMV say the 20 day period starts on the purchase date or the date that the vehicle enters California?

 

[Phoebe3]

I didn't ask that since I plan on driving straight home and it shouldn't take that long.

However, I would guess it's from the purchase date since that is the only thing that has a paperwork trail.

 

[eric1514]

It seems different states have different rules. Good thing you checked.

When I bought my van in NM, I paid no tax there and paid all the tax when registering it in ID. And I was allowed several months while I debated which state I was finally going to get plates from, including SD.

 

[Phoebe3]

Does that mean you own property or have established residency or have some other storage ability in those states? My big issue is insurance, which would be a lot cheaper if I lived in an area that had fewer accidents, vandalism and thefts. I considered parking it at a storage facility out of state, but then I'd probably never use it so that turned out to not be an option.

AZ does NOT charge sales tax if the state you are going to register the RV in has LOWER sales tax than AZ. The AZ DoR has a list of states that dealers can charge sales tax for and a list that they don't.

 

[eric1514]

I spend most of my time in ID, so that's where I registered it. I feel a certain obligation to pay taxes where I live.

There are a fair amount of people and businesses exist to assist them, who register their RVs in SD.

 

[BBQ-ClassB]

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ps. you better make an appt for smog before you picking up your vehicle.
One guy told me he couldn't get an appt in time and he had to fill up extra forms at DMV explaining why he did not register the vehicle within the time period, otherwise he would have to pay a fine for being late.

 

[Phoebe3]

Thanks - good idea!

Looks like I won't be able to get it for a while now - delivery is delayed due to the recall on Transits. I'm guessing it will be 4 - 6 weeks before I can get it so there's plenty of time to get my ducks in a row.