Here ya go!
And, some supporting documentation:
https://www.taxes.ca.gov/Sales_and_Use_Tax/ResaleCertificate.html
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Thank you so much! I just got off the phone with CarMax ( I am selling to another dealer FYI) and they said to just use DMV Reg 101, which doesn’t look right and they called it Statement of Facts, which is Reg 256. A bit confusing especially since the Bank doesn’t specify what they want.
I bought out my lease, did not sell it within 10 days. However, I went through the CA Dept of Tax and Fees and got a Certificate for Use Tax Exemption. Showed that to the DMV, didn’t have to pay taxes on the buyout. My registration was coming due, so I filed a Non-Op (only $23), and am now waiting for DMV to issue a clean title in my name.
Although my registration is not due until next month (July 8, 2021), they are saying I need to pay $439 to issue the title, an amount I have no idea how they came up with. AFAIK, it’s $15 to issue a new title in CA; only thing I can surmise is that they’re adding the registration fee (math adds up), so maybe the Non-Op payment I sent via snail mail hasn’t posted yet.
I have been on hold with them for 2 hours so far today trying to get an answer, and they are not responding on their Virtual Email system, which has worked pretty well so far.
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Would be interested in which form you filled out (CDTFA-106)? How and where did you get approved… tried getting some guidance by calling the CDTFA office and they told me that most likely it won’t get approved unless you have a reseller permit.
I am curious too which form you used. I need to do the same thing.
I thought Non-Op’s had to go through a new smog check to get re-registered. Check this with the DMV. Edit: and I think a safety check (lights, brakes,etc.)
My car is less than 4 years old, which exempts it from the obligatory smog checks on sale/transfer/etc.
Many leasing companies allow you to finance the car. If you do that, then that would get around the 3rd party buyout issue right?
And pay Sales Tax as well as all the other fees associated with buying the car.
I have the answer for you but you’re not going to like it.
When you file Non-OP it is assumed that the vehicle will be Non-OP for the entire registration period. If in the middle of the period you decide to operate the car again you will have to pay the full registration fee for the full period as if you never non-OP’d in the first place. No pro-rated registration
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The car will remain in Non-OP status until I sell it. The new buyer (Carvana most likely) will handle all the necessary fees/charges to get up and running again.
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I am a bit curios. So you received a signed title from lienholder. And you went to DMV along with clearance from CDTFA to request for title in your name. Now, you are allowed to wait indefinitely until you receive the title in your name? Not just 10 days? So, does that mean this 10 day period kicks in only after you receive the title in your name? Not after you receive the signed title from lienholder which still has lienholder’s name in it?
I bought out my Jetta from VW credit and sold it to Shift - this was back in 2019. I did not make a single phone call to the CA DMV or fill out any forms with them. Some forms were provided by VW credit. I did not inform VW credit that I was planning to sell the car. VW credit did not collect sales tax on the purchase.
Did you receive a signed title from VW credit? So Shift accepted the title that had the name of VW credit in it?
I received a title with my name on it from VW credit.
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Oh. From others’ comments, what I understood is that the bank sends the original title (which had their name on it) to you after signing on it and probably filling your name on the back. If you want title in your name, you need to get it from DMV after sending this filled title to them. I don’t understand how VW credit was able to give you a clean title in your name…
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Maybe I got it wrong…the paperwork they sent was enough for Shift to get the job done.
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It’s possible Shift changed their operating procedures (requiring clear title) in the last couple of years, especially during the pandemic. Best verify the paperwork requirements with whoever your buyer is
That is correct to the best of my knowledge.
I went into the DMV this morning and surrendered the title the leasing company provided me (signed, etc.), and the CDTFA Certificate. They checked it out, entered into the system, gave me my new reg card and sticker, and told me the title is on its way.
The 10 days is impossible to meet since you can’t possibly get a new title within 10 days after a buyout, which is what I mentioned on the CDTFA form requesting the tax exemption.
The DMV lady yesterday was implying that I was trying to game the system by claiming that my wife was gifting me the car! (The car is in her name, I am doing all this for her via a Power of Attorney form the DMV provides.) I told her that, no, it’s the State that’s trying to double dip by collecting sales tax twice. She didn’t have a response. She kept needling me, but I kept my mouth shut and simply held up the CDTFA Tax Exemption form. I asked her, “If you think I got this fraudulently, then you should speak up now.” No comment. Give me my title!
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