aznlstar

i've tried to find the answer on the boards, but haven't been successful.

this will be the first car that i'm buying, so I just wanted to be sure.

I was wondering...does it matter what county you buy your car in. Like where I live the county tax rate is 7.75% but nearby county's it ranges from 7.25% to 8.25%.

the 0.5% difference on at 35000 car is like $1750. So if a dealership in a county with a 8.25% county tax offers me like 1000 off MSRP...i'm not really saving anything, but actually pay more.

Just want to be sure before I drive an hour to a different dealership.

thx in advance

Skeedatl

In California, unlike most retail sales the sales/use tax on cars is determined not by county of sale, but county of "use" or registration with the California Department of Motor Vehicles (DMV).


From the California State Board of Equalization (the Cali state tax authority)
http://www.boe.ca.gov/sutax/faqtrans.htm#four
"What tax rate applies?
The tax rate is the same for sales tax and use tax. However, unlike most retail sales transactions where the tax rate of the store's location generally applies, the use tax rate is determined by where the property will be used, stored, or registered. In the case of a documented vessel, it is the marina or principal mooring location; for an aircraft, it is the hangar or tie-down spot. For property registered with DMV or personal items purchased abroad, the tax rate is determined by the owner's residence address. See California Sales and Use Tax Rates for a listing of current tax rates by city or county."


BTW, even if you were to get the tax rate difference, it would have been $175, not $1750 (1/2% is .005, not .05).

So no matter where you buy it (even out of state) you're subject to the sales or use tax rate (which are the same, sales applies to in state purchases, use tax applies to out of state purchases) of the county where the car is registered.

So if the car is registered with the DMV at an O.C. address, you would pay the O.C. tax rate even if you buy the car in Ventura or L.A. And vice versa, you pay the L.A. rate if the car is registered there, even if you buy the car in Ventura or O.C.

aznlstar

thx skeedatl...I guess that totally makes sense! If it wasn't like that...I could go to Oregon and buy it tax free.

and man..what shame...math has never been a great subject for me! This totally makes my shopping options easier now!