Sales tax for car

[mikedizzzo]

I purchased a used car a dealership from out of state and i told them to include the CA sales tax in the contract. They sent the paper work to get my car registered via third party. The third party contacted me and said, all I need is to get a smog check, vehicle check at DMV, and a check in the amount $425 for my registration/plates. My question is how does the DMV know that I paid my sales tax?

[jachien]

When conducting business in California, a tax has to be paid on product/goods sold. The tax you pay is actually a reimbursement to the establishment for the taxes the business must pay to the state at the end of the year. As far as how the DMV knows if you paid the sales tax, its on the form you fill out. You used to be able to say the car was a gift and not had to pay any sales tax at the DMV, however I do believe they started cracking down on that, and you have to put something.

[mikedizzzo]

A third party who hands registration is handling all my paper work. Lets say if i did all the paper work myself and went into the DMV to get my tags, how do i show proof to them that sales tax was collected on the car?

[AdamsS6V10]

You technically don't provide proof that you paid sales tax out of state to the DMV. Instead, the California Board of Equalization introduced a tax called "use tax" which is essentially a sales tax levied against goods purchased out of state and then brought into the state. Typically use tax is about 10%, generally lower, but the BoE sets it. You are required to pay this tax as a fee for registering the car in California for the first time.

Most people ignore it, but depending on the value of the car, you could get into some serious trouble if you're audited, which is very likely in the event that the discrepancy with the registration information (purchase date and place) and the tax information (purchase price and tax paid to California on the vehicle.) Worse yet, use tax also applies to private party sales within the state as well, though the tax varies by county.

I would go on the CA DMV website under information regarding registering a "used" vehicle in California for the first time. It will describe to you exactly what to bring to the DMV. Be prepared to pay the use tax up front.

To make a long answer short, it doesn't matter that you paid sales tax on the car already. You're gonna have to pay it again as a use tax to the DMV.

Hope this helps.


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[mikedizzzo]

You technically don't provide proof that you paid sales tax out of state to the DMV. Instead, the California Board of Equalization introduced a tax called "use tax" which is essentially a sales tax levied against goods purchased out of state and then brought into the state. Typically use tax is about 10%, generally lower, but the BoE sets it. You are required to pay this tax as a fee for registering the car in California for the first time.

Most people ignore it, but depending on the value of the car, you could get into some serious trouble if you're audited, which is very likely in the event that the discrepancy with the registration information (purchase date and place) and the tax information (purchase price and tax paid to California on the vehicle.) Worse yet, use tax also applies to private party sales within the state as well, though the tax varies by county.

I would go on the CA DMV website under information regarding registering a "used" vehicle in California for the first time. It will describe to you exactly what to bring to the DMV. Be prepared to pay the use tax up front.

To make a long answer short, it doesn't matter that you paid sales tax on the car already. You're gonna have to pay it again as a use tax to the DMV.

Hope this helps.


Sent from my iPhone using Audizine

cant find the "used" vehicle section.

[AdamsS6V10]

Here, this link should explain it:
https://www.dmv.ca.gov/portal/dmv/de...es/howto/htvr9

There is a fee calculator towards the bottom that will allow you to calculate everything you need to pay.

Hope this helps.


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