Recently purchased a jalopy that was in non op status and kept it in non op with the title transfer. Calif waives the sales tax when this is done (car in non op at purchase and titling it maintaining the non op for the new owner). This was a big surprise, never knew about this. There has to be a catch as Calif never gives anyone a break when it comes to taxes. The taxes must have to be paid at some point but the information from AAA employees is conflicting. Have any fellow Calif HAMBrs had experience with this? Can't find any info on the Calif DMV website. Thanks and hope this helps others. As one of the AAA employees said, 'try to by a car in non op status whenever possible'.
Nope. It will be taxed on whatever number was on the title transfer, or bill-of-sale. The only time this comes into question is on newer cars, where there is a drastic dependency in purchase purchase price versus book value.
It's not really called sales tax by CA DMV..even though it is...they call it use tax. So I guess if you ain't using it, they can't tax you. What Gimpyshotrods said is right...when you want to register it...youll have to pay the tax.
How does that work anyway, a "use tax"? Them: "Say, I see you've got something there, and you want to use it. Give us money."
And the more you paid for it the more it costs to use it! And, in addition to the new gas tax, registration fees have gone up, $50 more per year for vehicles worth between $5k and $25k for road repair. Unfair to collectors who only drive one at a time for limited miles. Some are putting most on PNO and taking their chances or getting a free one day permit to use them.
Black Panther, use tax, that makes sense as to why the tax is waived if maintained on non op. Some of the AAA employees said it wouldn't have to be paid when licensed for the street but I knew Calif would not let that happen as this state strives on taxes!
Taxes are the price of civilization. If you don't want to pay them, that's fine. Just don't partake of any of the advantages that civilization brings.
It's a lopsided system. Say a 70 year old vehicle changes is bought and sold 20 or more times. It's possible that the total taxes paid could add up to thousands, a lot more than the vehicle was worth at any time in its life. A similar vehicle that sold once or twice would be a fraction of that. I like how they do it here in Texas. After a certain age, no more sales taxes are charged. I forget how old the vehicle needs to be for the cut off, but last year I was all ready with a BS price I paid for my '52 purchased out of state, but I didn't get to use it because the first thing out of their mouth was "No sale tax due". I've wondered what would happen if you didn't actually pay cash but simply traded something, like a boat or a shotgun, for a jalopy. (?) It seems to me that would be a case of no loss/no gain, and not a "purchase" that could be taxable. And the same question if the vehicle is a gift, like say your uncle had owned it and gave it to you. (?)
Depends how you look at it. Disease outbreaks (Hepatitis A) because people shit on the sidewalks? Doesn't sound very civilized to me.
There is no evidence of that happening where I am. It has happened, on a very small scale, about 500-miles from where I live. There will always be pockets where civilization has failed its members of least resource.
Well out in this neck of the woods....... They will ask you- So you traded for goods= What's it's value? They want a number to base the fee's on. Even a gift, they want a dollar figure. No such thing as a free lunch anymore. But then again, would anyone say I traded for this "widget", and it's worth this amount of money? I'm sure some do. I've been guilty of not, and am actually pleased...... I'm not getting a free lunch, why should I give one? Words here have been tamed down for the weak of heart.....
You buy a vehicle here, you pay sales tax, either at the dealer or at the courthouse if it's a private sale. If it's non operational, you pay nothing while it sits, only when you register it the first time. We have state, county, and sometimes, city taxes on yearly registration, plus a school tax, all are based on the stated sales price on the first tag, then they have an assessed value they use on tags after that first one, and it declines with age. Tags on a 20 year and older vehicle are pretty much tax free, just a few bucks, with I think about $25 for the tag itself. We do have minimum liability insurance requirements, you must have insurance before a tag is issued, and kept up while the tag is active.
It's no problem if its not from out of state. A non opp costs nothing until you register it and that is only on the bill of sale you show them . I recommend using a registration service rather than DMV or you will get Screwed with some unnecessary fee. What the DMV doesn't not want you to know about is a little short form called a statement of facts. A service will have this but the DMV is reluctant to give one out. You simply state that the car has not been driven since what ever date the non op was documented . This statement of fact form also works for cars that are out of the system. The tax is based on what you paid so a bill of sale helps and ends any question of how much tax. I feel sorry for those that find their dream car project only to get blindsided with huge fees by the Gestoppo at the DMV. Sent from my iPhone using H.A.M.B.
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