I currently have a 1k deposit down on a new car that is being delivered to the dealership next week. Whole on Reddit i saw someone mention that if you're a WA state military resident on orders out of state and purchase a car out of state, you can license and register in the state of WA and the car will not be applicable to WA state sales tax. I still have my WA Drivers License and am still registered to vote in the state. More info found here:
I informed my dealer of my intention to license and register in WA and provided the same explanation and link above. The salesman that ive been working with just told me that he spoke with his manager about it and because I'm purchasing the vehicle in CA, I'm required to pay CA state sales tax.
My question is this; did I misunderstand the law in thinking that I'd be able to avoid paying any sales tax to CA, or is the dealership wrong to still require me to pay CA sales tax?
Buying a Car in CA as a WA resident, Dealer is requiring me to pay CA sales tax instead of WA
byu/hodgen inMilitaryFinance
Posted by hodgen
7 Comments
Have it delivered across the state line. If you take delivery in California, the dealer is required to collect California sales tax.
This is a frequently asked question in r/askcarsales
Buying in California means you need to abide by California laws. California has no obligation to follow that Washington law. You need to find out California’s rules on nonresidents stationed there.
I’ve bought a car from a CA dealership that I then registered in OR. No tax.
I’ve also recently purchased a car from a CT dealer and registered to OR. Also no tax.
You pay the tax (or no tax in my case) to the state that you register in, not where you purchase the vehicle. If that weren’t the case, people would only buy cars from no sales tax states.
Edit: I must be wrong about CA law, which isn’t a big surprise knowing that state.
If it hits CA pavement w you behind wheel, you have to pay ca sales tax period.
Generally speaking you pay sales tax where the car is bought (if bought in person). If you register in a different state where sales tax is lower then you won’t pay any additional tax when registering. If you register in a state where sales tax is higher, you will pay the difference between where you bought and where you are registering. For example:
CA Sales Tax = 7.5%
$50,000 car = $3,750 sales tax
WA Sales Tax = 6.5%
$50,000 car = $3,250 sales tax
Since CA sales tax is higher, you won’t pay additional tax when registering in WA. However, you are required to pay the full 7.5% at purchase (if physically purchasing in the state).
Edit: Typo
Sorry to hear it’s rough going in CA. I’ve bought and tagged five cars as a WA resident while out of state (MN, MD). And and never had to pay sales tax in the localities I was physically in (WA exempts mil while out of state). I recall CA exempts some personal property or use tax if you bring it into CA >1yr after you get orders to the state.
I just (couple weeks ago) bought a car in CA as a WA resident with a CA PDS.
Did it all through the mail with WA licensing office. Extremely fast and easy. Only had to pay for car tabs in WA.
But this was a private party sale not a dealer.