Sales Tax

[gosman]

So a big maybe for sales tax deduction for 2015. I live in Texas. We go to Colorado a lot. (It is rumored that Colorado is owned by Texans). I am looking at buying a RV in Colorado. So you mean to tell me that if I buy one in Colorado, use it during the summer, and store it in the winter, I don't pay sales tax? It seems that I would have to pay Colorado sales tax? So I would have to buy in Oregon or Arizona (used) and not pay sales tax?

[Timon]

Originally Posted by HighwayRanger

Timon, can you help me understand who would be the arbiter of whether or not an RV is "used" outside of California for that year? And how much "use" is enough? Also, can you help me find the 1-year rule in the CVC? So far, I'm not finding it.

Are you thinking that this rule is so that people don't buy an RV or car in California without paying sales tax, stash the RV in a storage lot in Arizona for a period of time, then bring it in with the hope of never paying sales tax? I imagine that is the scenario they are trying to preclude. Right?

Thanks,

Roy

Originally Posted by BobGed

When you bring it back to CA you have to be able to prove that it was actively used outside of CA for that prior year. That means fuel receipts, campground receipts, etc. You cannot simply put it in storage for a year.

Then question becomes, where do you register it for that year while you're using it, and how do you insure it? Hint: Don't even think about NV or AZ. There just as bad, if not worse, than CA.

Bob has it right but I'll add that you also want to keep a complete log and present the receipts in an organized manner since the burden of proof when they audit you, and they will audit you, is on you. You can't just have it stored for the year, you have to show it's being used.

There is one exception to bring into CA during the year and that for warrantee service at your dealer and then it's limited to 30 days and the travel has to be direct to the dealer and then directly out of the state when the work is done. You can't even stay one night after the work is complete.

The rule is not in the CVC it's a Board of Equalization rule. You have to fill out the correct forms, get them processes (take them in to a field office and never mail them or they can take weeks to process) then take the processes from the BOE gives you to the DMV when you register the vehicle.

Publication 52 contains a lot of information about this.

For those in CA the safest state to take delivery in is OR since CA may notify other states and they might want their "CUT".

[B-Man49]

Originally Posted by kalynzoo

Over 10% in many California cities (LA) and you either pay the dealer or pay the DMV when you register the vehicle. The actual amount based on city and county taxes is calculated on the zip code. So you pay regardless of place of purchase.

Sorry I started this post before I read Timon post

X2 Timon Post.

In California there are 2 possible taxes on motorhomes, retail sales tax and use tax. If you purchase your motorhome in California then the dealer has to collect the retail sales tax. If a private sale you will pay the retail sales tax at the DMV when you register your motorhome. The use tax is when you purchase a motorhome outside of California. This tax is the same rate as the retail sales tax. You don't pay this to the DMV when you register the motorhome, you pay it to the Franchise Tax Board when you bring the coach into California. Unless you keep and use the coach outside of the state for 12 months then no tax. Timing and planning is everything.

[HighwayRanger]

Thanks for the clarification. Good thing we're going to be legitimate South Dakota residents when the purchase is made. And we're going to take factory delivery so the rig won't set wheel in Cali unless we are visiting family. Once again, California continues to drive people away......

Roy

[tmw188]

Originally Posted by HighwayRanger

Thanks for the clarification. Good thing we're going to be legitimate South Dakota residents when the purchase is made. And we're going to take factory delivery so the rig won't set wheel in Cali unless we are visiting family. Once again, California continues to drive people away......

Roy

You should live in MO.



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[Shaky]

Originally Posted by myliladog

YES I live in Oregon and there is no sales tax at all allot of friends in the states come to Oregon to purchase a motor home there is a fantastic dealer in Junction city that I have dealt with the last 25 years 4 motor homes. I might be able to help you with a address in Oregon also good luck

Drive back into Washington State from Oregon and you get hammered with WA taxes. Folks used to use a make believe Oregon address (friend, relative, whatever) and register their vehicles in Oregon. Washington is all over that and will fine your tail off. There's no legal way to avoid paying sales tax on a motorhome if your state has one. Sad, but true. Washington has no state personal income tax... but they tax anything else dead, or alive to the max.

[Mr_D]

Originally Posted by Shaky

Washington has no state personal income tax... but they tax anything else dead, or alive to the max.

Yep, over $23,000 on the used Magna that we bought in Oregon.

[Rocky68D]

Originally Posted by Mr_D

Yep, over $23,000 on the used Magna that we bought in Oregon.

Didn't you have a trade in to help offset the full amount on the CC? I thought we pay WA use tax on the difference between the trade value and the price of the one you are purchasing?

[Fl_Richard]

I will use every possible legal maneuver to avoid paying taxes to any entity.

You think IBM or GE or Home Depot doesn't? If they can I will too.

This whole gee you really are immoral for not opening your wallet up to them is a foreign concept to me.

If it's a legal loophole, oh well. If it wasn't there for a reason they woulda closed it!

[TGA2016]

Tax laws are written by politicians who are the new criminal class in my book. Moses didn't come down a mountain with taxes written in stone. If there's a loophole then I use it, as has been said if it's ok for big biz it's ok for the rest of us.


Barry and Pat,

[theroc]

[/QUOTE]

Originally Posted by Fl_Richard

I will use every possible legal maneuver to avoid paying taxes to any entity.

You think IBM or GE or Home Depot doesn't? If they can I will too.

This whole gee you really are immoral for not opening your wallet up to them is a foreign concept to me.

If it's a legal loophole, oh well. If it wasn't there for a reason they woulda closed it!

Originally Posted by TGA2016

Tax laws are written by politicians who are the new criminal class in my book. Moses didn't come down a mountain with taxes written in stone. If there's a loophole then I use it, as has been said if it's ok for big biz it's ok for the rest of us.


Barry and Pat,

Wow! This is refreshing. Usually in these types of threads and specifically ones pertaining to Montana LLC's, we are usually outnumbered by the members here yelling "you are cheating your state out of money that they need to maintain the roads you drive on and the libraries you use, and the schools your grandkids go to -- you're a scofflaw and you're cheating and it should land you in jail."

Several years ago, I even had someone here PM me to rant that I, and people like me who use a Montana LLC to register their motorhome, make them sick and deserve to die for such un-American behavior. Somewhat extreme, in my opinion. But I guess he was passionate in his false opinion that anybody using a Montana LLC is illegally evading taxes. I really wonder if he gives Uncle Sam and/or his home state a nice tip when he sends in his tax return each year? ...maybe 15% above what he owes?

How many of us voluntarily pay more taxes than we have to just because we want to make sure our local governments have enough to pay for all the amenities we enjoy? Yes, I want to pay my fair share of taxes and I've paid plenty of taxes throughout my life, believe me. I LEGALLY register my vehicles in a Montana LLC. Does is save me some money? Yes, a bit. However, if I was breaking the law, I definitely wouldn't do it.

How many of you pay more taxes than you legally have to just to be patriotic or that by paying more taxes than your fellow RVers is somehow "more American?" I bet there's not many here that do no matter how unscrupulous they think I am. Or do any of you say, "Nah, I don't itemize my deductions even though it would save me some money because taking the standard deduction is allowing me to donate more money to the government which they deserve to have and I want to be a nice guy" ...? I bet not many of you have been doing that ...if any at all.

I spend very little time in my home state and if I eventually spend more time there, I will then register my vehicles in that state. I don't know if what I'm doing is necessarily a "loophole" but if I can save money by legally structuring my assets in a certain manner, I'm going to do it ...without a guilty conscience or feeling un-American.