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Discussion Starter #1
Hey, all...

Some of you must've bought your Challenger outside California, right? What were the tax/license/registration costs and when did you pay them? Do you end up getting double-dinged on an out-of-state auto purchase? Any difference between new and used vehicles?

Thanks in advance for any help you can provide.

Rich

PS Bonus question for extra credit: in California, how does one sell a non-street-legal car (like a Pro Stock)? :scratchhead:
 

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Some of you must've bought your Challenger outside California, right? What were the tax/license/registration costs and when did you pay them?
Tax is based on the value of the vehicle and is based on your county's current tax rate. License fee is also based on value, and the registration fee is the small part. It's due at the time of registration.

Do you end up getting double-dinged on an out-of-state auto purchase? Any difference between new and used vehicles?
You could get dinged twice if you don't tell the seller that the car is going out of state. You are not a resident of and have no connection with the state you're buying from so they cannot charge you sales tax. It's your job to report the transaction to your own state. For cars, it's easy for the state to collect the sales tax because you cannot register the car without paying it. You're suppose to be reporting Internet transactions as well, like things you buy on Amazon or eBay, but no one really does because the state cannot track it. If you do get dinged for tax in another state, you can apply for a refund.

Bonus question for extra credit: in California, how does one sell a non-street-legal car (like a Pro Stock)? :scratchhead:
For a street car with say a supercharger, it's up to the seller to ensure a vehicle being sold complies with all emission requirements of the state. Without any clause to the contrary, a buyer could come back to you and make you bring the car into compliance. A hefty bill. If you put a clause in the Bill of Sale, like the "car sold as is, buyer responsible for emissions, tax, license, etc." you can pass that liability onto to him. Of course, the buyer will need to sign it as well to make it binding upon him.

For something like a pro stock vehicle. It's not street legal and exempt from emissions and vehicle registration fees, but the ol' "sold as is" is still a good idea.
 

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Discussion Starter #4 (Edited)
Good info, guys... keep it coming. I'm looking at the Cali Board of Equalization publications and they describe the process for getting credit for taxes paid to another state on the car purchase. Only problem is, they use the word "may":

If your purchase is taxable, you may be eligible for a credit for sales or use tax paid to another state at the time you purchased the vehicle or vessel.
Seems like the best way to avoid this is to not pay out-of-state taxes on the purchase in the first place.
 

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I bought an SRT8 from Bob Frederick in PA. and had it drop shipped to TX.

You pay the DEALER the price of the car, PERIOD.

You pay ALL taxes, title and registration in your HOME state.

That's it.
 

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I bought an SRT8 from Bob Frederick in PA. and had it drop shipped to TX. You pay the DEALER the price of the car, PERIOD. You pay ALL taxes, title and registration in your HOME state.
That's it.
That's correct. Also, if your Challenger has a gas guzzler tax tacked on, argue with the DMV when it comes time to pay your state sales tax. I got the clerk to exclude the $1,700 gas guzzler tax from my purchase price. You should not be taxed on tax. This saved me $119, based on 7% tax.
 

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Discussion Starter #7
I bought an SRT8 from Bob Frederick in PA. and had it drop shipped to TX.

You pay the DEALER the price of the car, PERIOD.

You pay ALL taxes, title and registration in your HOME state.

That's it.
True regardless of the state where it's purchased? I have a quote from a TX dealer that includes their sales tax... D'oh! I suppose this could be a subtle manuever on their part, claiming they didn't know that I'm out-of-state and not going to use the car in TX?
 

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That's correct. Also, if your Challenger has a gas guzzler tax tacked on, argue with the DMV when it comes time to pay your state sales tax. I got the clerk to exclude the $1,700 gas guzzler tax from my purchase price. You should not be taxed on tax. This saved me $119, based on 7% tax.
Good point! Probably only applies to new vehicles, though...
 

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True regardless of the state where it's purchased? I have a quote from a TX dealer that includes their sales tax... D'oh! I suppose this could be a subtle manuever on their part, claiming they didn't know that I'm out-of-state and not going to use the car in TX?
I bought my car from TX. I live in AR. I told them this and asked about taxes. They said Texas state law requires them to collect taxes on the vehicle BUT THAT they pay those taxes to the state they register the car in. So they took $2500 from me for taxes, gave me a TX temp plate and said they are registering the car in AR.

A month later, I got my AR plate in the mail from the DMV in AR. The dealer in TX sent me a check for the difference in taxes that they collected from me (they took $2500 but the taxes were only $2000 or so so they sent me $500 back).
 

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The way that mine worked, at the time, was that I paid Ohio sales tax at the time of purchase, then an additional 3.25% once I registered it in Ca.

Even though our Challengers are 50 state legal, CA wouldn't complete my registration without a smog check. :fight: Be prepared for that.
 

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My dealer, Bob Frederick, prepared a form that exempted me from Ohio sales tax. I paid the sales tax in my home state of NJ.
 

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I live in CA and bought in OR. Paid the CA DMV all of the taxes when I wanted to license it, OR doesn't charge sales tax. CA's DMV site has an estimator for tax and license, it was spot on. Just had to be sure that the car met CA pollution standards. I think all Challengers are 50 state cars so that was OK. 1600 mile round trip in less than 36 hours but I got to drive a new R/T home.
 
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