What is the best way to avoid paying tax and registration fees in my situation? I am a California resident stationed in CO and will be getting assigned to CA. Going to be buying a new car. Can I buy and have car registration in CO or buy/have car registration in TX where I have family with an address? I’d like to keep my CA residency because it has lower effective tax rate than CO but don’t want to pay the high registration fees etc. Any other recommendations or help are welcome.
Posted by chocolatechip420
3 Comments
Do any of these states offer free registration / waived fees for military personnel?
As a CA resident, once you bring a vehicle to CA you are required to register it there. https://www.dmv.ca.gov/portal/how-to-determine-residency-when-fees-are-due-on-out-of-state-vehicles-htvr-33/
Even if you register the car and pay tax in CO, once you move to CA you will have to re-register your vehicle in CA (because you are a CA resident) and then you will end up paying tax again as you transfer title and register in CA. As for using TX, you are basically asking on a public forum if you can get away with tax fraud. Highly don’t recommend that you go this route. Sounds like your best bet would be to buy the car and register it in CA since that is where you are a resident and will be stationed.