BMW Garage BMW Meets Register Search Today's Posts Mark Forums Read
BMW M5 F90 (2018+) General Forums F90 M5 Pricing, Ordering, Tracking, and European Delivery    Sales tax in California

Post Reply
 
Thread Tools Search this Thread
      12-23-2018, 11:06 PM   #1
themnmd
Colonel
themnmd's Avatar
United_States
1687
Rep
2,699
Posts

Drives: 23 X5MC
Join Date: Sep 2018
Location: San Rafael CA

iTrader: (0)

Garage List
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.

Rob
Appreciate 0
      12-24-2018, 05:22 AM   #2
Who's on first
Brigadier General
Who's on first's Avatar
United_States
2460
Rep
3,802
Posts

Drives: A-10C
Join Date: Feb 2015
Location: Maryland

iTrader: (2)

Quote:
Originally Posted by themnmd View Post
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.

Rob
Wait. You said full MSRP.

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.
Appreciate 0
      12-24-2018, 07:33 AM   #3
themnmd
Colonel
themnmd's Avatar
United_States
1687
Rep
2,699
Posts

Drives: 23 X5MC
Join Date: Sep 2018
Location: San Rafael CA

iTrader: (0)

Garage List
Quote:
Originally Posted by Who's on first View Post
Quote:
Originally Posted by themnmd View Post
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.

Rob
Wait. You said full MSRP.

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.
Yes that is true. Also, say I buy a couple of cell phones from Verizon or whoever. They have a sale half price when you buy 2 phones. I would pay the tax of full retail on both. That's why it's Taxafornia
Appreciate 0
      12-24-2018, 09:21 AM   #4
Pimpsy
Captain
418
Rep
862
Posts

Drives: 2019 M5C
Join Date: Jan 2012
Location: NJ

iTrader: (0)

California is as out of control as NJ! Ridiculous!
__________________
Retired 2016 BMW 550i xDrive MSport | 2013 BMW 550i xDrive MSport | 2012 BMW 535i xDrive | 1988 BMW 325ic | 1984 BMW 318i
Appreciate 0
      12-24-2018, 09:30 AM   #5
Quickburn7
Captain
951
Rep
765
Posts

Drives: 2018 Bmw M5
Join Date: Jan 2018
Location: Los Angeles

iTrader: (0)

Quote:
Originally Posted by themnmd View Post
Quote:
Originally Posted by Who's on first View Post
Quote:
Originally Posted by themnmd View Post
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.

Rob
Wait. You said full MSRP.

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.
Yes that is true. Also, say I buy a couple of cell phones from Verizon or whoever. They have a sale half price when you buy 2 phones. I would pay the tax of full retail on both. That's why it's Taxafornia
I don't think that's correct. You pay tax on the cash price of vehicle. So if msrp is 120k and negotiated price is $110k than you pay tax (9.5% in my part of CA) on the $110k. If dealer is making you pay on the msrp than they are doing something very wrong. In CA you pay tax on what you pay even at Verizon. You get 2 phones for $50 you pay tax on the $50 not the value of each phone individually.
Appreciate 1
BMWM5NYC496.00
      12-24-2018, 10:03 AM   #6
themnmd
Colonel
themnmd's Avatar
United_States
1687
Rep
2,699
Posts

Drives: 23 X5MC
Join Date: Sep 2018
Location: San Rafael CA

iTrader: (0)

Garage List
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!
Appreciate 0
      12-24-2018, 10:10 AM   #7
themnmd
Colonel
themnmd's Avatar
United_States
1687
Rep
2,699
Posts

Drives: 23 X5MC
Join Date: Sep 2018
Location: San Rafael CA

iTrader: (0)

Garage List
https://www.dmv.ca.gov/portal/dmv/de...latorweb/index

Calculate the tax
Appreciate 0
      12-24-2018, 10:41 AM   #8
Who's on first
Brigadier General
Who's on first's Avatar
United_States
2460
Rep
3,802
Posts

Drives: A-10C
Join Date: Feb 2015
Location: Maryland

iTrader: (2)

Get the hell out of California.

Problem solved.
Appreciate 0
      12-24-2018, 10:55 AM   #9
themnmd
Colonel
themnmd's Avatar
United_States
1687
Rep
2,699
Posts

Drives: 23 X5MC
Join Date: Sep 2018
Location: San Rafael CA

iTrader: (0)

Garage List
Quote:
Originally Posted by Who's on first View Post
Get the hell out of California.

Problem solved.
in about 10 years to retire. kids still in school and my family is here too. so it makes it hard.my wife and I have discussed it
Appreciate 0
      12-24-2018, 11:21 AM   #10
lemetier
Plenipotentiary
lemetier's Avatar
2614
Rep
3,046
Posts

Drives: Yes
Join Date: Jul 2010
Location: Location

iTrader: (0)

Quote:
Originally Posted by themnmd View Post
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.

Rob
In CA, a Use Tax is assessed (tangible personal property Tax) on vehicles/boats/planes at the same rate as the state + applicable local jurisdiction Special Additional Tax based on the purchaser's domicile.

If purchasing, it's based on the selling price (not MSRP).
Appreciate 0
      12-24-2018, 05:00 PM   #11
dbonebre
New Member
15
Rep
23
Posts

Drives: '22 F90C '18 F90 '16 991GTS
Join Date: Apr 2018
Location: Washington, DC

iTrader: (0)

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.
Appreciate 0
      12-24-2018, 06:08 PM   #12
themnmd
Colonel
themnmd's Avatar
United_States
1687
Rep
2,699
Posts

Drives: 23 X5MC
Join Date: Sep 2018
Location: San Rafael CA

iTrader: (0)

Garage List
Quote:
Originally Posted by lemetier View Post
Quote:
Originally Posted by themnmd View Post
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.

Rob
In CA, a Use Tax is assessed (tangible personal property Tax) on vehicles/boats/planes at the same rate as the state + applicable local jurisdiction Special Additional Tax based on the purchaser's domicile.

If purchasing, it's based on the selling price (not MSRP).
not when registering you car
Appreciate 0
      12-24-2018, 06:11 PM   #13
themnmd
Colonel
themnmd's Avatar
United_States
1687
Rep
2,699
Posts

Drives: 23 X5MC
Join Date: Sep 2018
Location: San Rafael CA

iTrader: (0)

Garage List
Quote:
Originally Posted by dbonebre View Post
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.
wow that even worse. at least California you only pay sales tax on each monthly payment
Appreciate 0
      12-24-2018, 06:31 PM   #14
lemetier
Plenipotentiary
lemetier's Avatar
2614
Rep
3,046
Posts

Drives: Yes
Join Date: Jul 2010
Location: Location

iTrader: (0)

Quote:
Originally Posted by themnmd View Post
Quote:
Originally Posted by lemetier View Post
Quote:
Originally Posted by themnmd View Post
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.

Rob
In CA, a Use Tax is assessed (tangible personal property Tax) on vehicles/boats/planes at the same rate as the state + applicable local jurisdiction Special Additional Tax based on the purchaser's domicile.

If purchasing, it's based on the selling price (not MSRP).
not when registering you car
Yes it is on a new purchase. Lease and used/out-of-state is different. There is no credit for trade however.

*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.
Appreciate 0
      12-25-2018, 11:38 AM   #15
paliknight
fuck this field
paliknight's Avatar
United_States
2187
Rep
2,605
Posts

Drives: 18 F80 CS/18 F80 ZCP/19 M2C
Join Date: Aug 2014
Location: everywhere

iTrader: (1)

Quote:
Originally Posted by themnmd View Post
Quote:
Originally Posted by Who's on first View Post
Quote:
Originally Posted by themnmd View Post
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.

Rob
Wait. You said full MSRP.

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.
Yes that is true. Also, say I buy a couple of cell phones from Verizon or whoever. They have a sale half price when you buy 2 phones. I would pay the tax of full retail on both. That's why it's Taxafornia
OP, every state would charge you tax on both phones since Verizon issues the free one in the form of monthly bill credits, that's why. So technically you are buying it, but receive a monthly credit on your bill to offset the financed amount.

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.
__________________
BMW family... for now.
Appreciate 0
      12-25-2018, 08:21 PM   #16
Gassy
Soporificist
160
Rep
327
Posts

Drives: 2019 M5- Rhodonite/Aragon
Join Date: May 2010
Location: North Carolina

iTrader: (0)

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.
__________________
2019 M5 Rhodonite Silver// 2016 M4- retired// 2011 750i- retired// 2004 740i- retired//
2001 740i- retired// 1998 M3- retired
Appreciate 1
themnmd1687.00
Post Reply

Bookmarks

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off



All times are GMT -5. The time now is 01:33 AM.




m5post
Powered by vBulletin® Version 3.8.11
Copyright ©2000 - 2024, vBulletin Solutions Inc.
1Addicts.com, BIMMERPOST.com, E90Post.com, F30Post.com, M3Post.com, ZPost.com, 5Post.com, 6Post.com, 7Post.com, XBimmers.com logo and trademark are properties of BIMMERPOST