If I live in CA, but want to purchase a car from a nearby state, do I pay sales tax from the state of purchase or from where I register the car?

When I register the car in my home state, CA, do I then pay sales taxes on it again or do I only pay the insane registraiton fees?

Thanks.

 

You pay all fees and taxes associated with the state you register the car in. (that means you're going to pay whatever California wants you to pay).

 

That is 100% correct. You have to pay taxes wherever you register the car. Don't come over here (oregon) to buy one, you will get slammed when / if you get caught. I am glad I moved when I did because that new tax in Cali sucks a$$. I miss the Bay area and LA though..

 

Is it a bad thing when I'm Canadian and I know this? lol!

 

Sorry, I might be picking at words here, but I just want to make sure I have my bases covered.

What do you mean "if you get caught?" Assuming I have to pay the CA taxes and fees anyway, there's no penalty for buying out of state is there?

 

He probably means if you try to register the car in Oregon without proper residency. Oregon has no sales tax.

There is no penalty for buying out of state, however should the dealer screw up the paperwork it can be a hassle. It took me 6 months to register my 02 M coupe purchased out of state because of dealer incompetency.

 

Thanks everyone!

 

You have a cali drivers lic and a california addy, so therefore you have no other address to register the car to because you cannot prove residency. However i bought a car in oregon (had oregon id and address) and brought the car here and did not have to pay sales tax, you have to at least have like 7500 miles on the car to avoid tax, but there is nothing you can do to avoid registration fees...i didn't pay tax, but i worked in oregon and lived there of course but my car was less than 6 mos old. Or pay cash and register the thing to someone who lives in oregon and just drive with oregon plates for a few mos, and then just transfer!!

 

if you buy out of state, how are they gonna know the price you paid when you register?

Esp if you buy from a private party? Can't avoid the reg fees, but maybe the sales tax. Each state has different rules, I guess. Maybe the state will REQUIRE a bill of sale to register the car. Or maybe they'll go off the same valuation when they assess taxes on your car.

 

All states require a bill of sale when registering a car. This is required for the title to change hands, and title prep is done by the state.

In Massachusetts, the purchaser of a car from a private party is required to pay state sales tax on the purchase price of the vehicle, or the *trade in* value as listed by the NADA blue book, whichever is higher.

Also in Massachusetts, the name of the person on the registration and title must match. It may be joint (ie: husband and wife).

Our neighbor to the north, New Hampshire, also does not have a state sales tax. However, registering it to someone that one knows in New Hampshire would also mean titling the car to that person. There is no such thing as an out-of-state transfer of plates, registration of a New Hampshire car would still subject the registrant to sales tax on the purchase price or the NADA trade in value.