Bought a new car in Nevada. I live in California. Was told by dealer that the new law which allows for the sales tax to be calculated based on taxable sales price minus the trade in allowance multiplied by 7.75%would apply to California due to a reciprocal agreement. In my situation taxable sales price was 29,500 with trade in being 20,290. That would put my sales tax at 718.00 based on the new taxable amount of a little more than 9,000. California is saying that I must pay tax based on total taxable sales price. No trade in allowance. This is after the dealer in Nevada said that the new law would apply in Cali due to reciprocity. Cannot register auto until this is resolved. Refuse to pay over 1,600 more in sales tax when Nevada stated that I should just be liable for the difference between the two tax rates-8.25(CA) and 7.75(NV). Apprx 46.00 owed in difference.
2007-05-29 13:41:48 · 2 answers · asked by Earl S 2 in Business & Finance ➔ Taxes ➔ United States
Since you live in CA, you will have to pay the CA sales tax. There's no way around that. You would only pay the NV tax if you register the vehicle there. Just get a temp NV tag to drive home on and pay the taxes in CA when you register the vehicle. If you do pay the NV tax, CA will give you a credit for the tax actually paid. You will have to make up the difference. CA will "net out" the sales tax on sales by licensed CA dealers that involve a trade-in. They won't net out the sales tax on a purchase from out of state.
I would trust what CA is telling you before I'd EVER trust what a car dealer in ANY state tells you! Those scumbags will say ANYTHING to get the sale in many cases. Do NOT be suckered by them!
2007-05-29 20:01:53 · answer #1 · answered by Bostonian In MO 7 · 1⤊ 0⤋
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2016-09-05 16:11:36 · answer #2 · answered by ? 4 · 0⤊ 1⤋