12-23-2018, 11:06 PM | #1 |
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Sales tax in California
Anyone else have the same rule as California when it comes to sales tax? Here the state charges tax on the full MSRP of the car. That is before any down payment, cash back or trade in. Would not be so bad except the tax is 8.5% where I am in San Francisco Bay area. So basically any negotiated discount and loyalty cash is negated. Sorry just a rant while planning my M5 order in the spring.
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12-24-2018, 05:22 AM | #2 | |
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Let's say MSRP is $120,000, you negotiate down the price of the vehicle to $112,000. Forget everything else, you'd still pay tax on $120,000. That cannot be legal/true. You didn't buy something for $120,000. |
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12-24-2018, 07:33 AM | #3 | ||
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12-24-2018, 09:21 AM | #4 |
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California is as out of control as NJ! Ridiculous!
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12-24-2018, 09:30 AM | #5 | |||
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12-24-2018, 10:03 AM | #6 |
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https://www.salestaxhandbook.com/cal...s-tax-vehicles
To my knowledge only a few states do this. A way around it would be a lease,only paying tax on each lease payment. Which would cut it roughly half given the 50% depreciation, plus the MF. Oh and the high license fee based on car value. Err a tax! |
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12-24-2018, 10:10 AM | #7 |
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12-24-2018, 10:55 AM | #9 |
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12-24-2018, 11:21 AM | #10 | |
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If purchasing, it's based on the selling price (not MSRP). |
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12-24-2018, 05:00 PM | #11 |
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Maryland is similar - tax on the sale price irregardless if is a lease or outright purchase. Fortunately, the entire sales tax paid on one vehicle can be passed onto another vehicle in a direct transaction i.e. if you lease a 100k car, Maryland rolls in 6% (6000) into the lease payments; however, there is essentially $6000 in sales tax equity which can be fully realized if turned in and applied towards another lease of 100k or greater (lesser if the new vehicle is below the sales price of the prior vehicle). The subsequent vehicle would not have any sales tax. Maryland has allowed this for the past several years.
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12-24-2018, 06:08 PM | #12 | ||
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12-24-2018, 06:11 PM | #13 | |
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12-24-2018, 06:31 PM | #14 | |||
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*Licensed CA Dealer Rebates/incentives from manufacturer to customer do not reduce the purchase price. They have the same consideration as cash on a purchase. Manufacturer to dealer incentives do count as a non-taxable reduction. |
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12-25-2018, 11:38 AM | #15 | |||
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Most carriers do this so they can tie you into two years (contract style) since paying the phone off would terminate the monthly bill credits and you'd lose the remainder. Agreed though about California's ridiculous taxes. Back in the day when 2 year contracts were still a thing, you'd buy the phone at a discount (2 year price) and only pay tax on the purchase (sale) price. In Cali it would be on the full price of the phone. Bought an S5 for 199 back in the day and paid 70 bucks in tax lol.
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12-25-2018, 08:21 PM | #16 |
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In South Carolina the total sales tax is $500. If you buy a $10,000 or $120,000 car, sales tax (which is termed a Road Maintenance Fee) maxes at $500. In North Carolina, it's 3% of the total sales price (not MSRP- that's absurd and excessive taxation). The answer: get the f out of The Peoples' Republic of California.
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