leased a car in MN and paid $480 for MN registeration and plate as well as ~$800 MN lease usage tax up front.
Now I am planning to relocate to CA.
How long can I drive with this car with MN plate in CA ?
I guess the $480 MN registration is waisted. How about the $800 usage tax?
I dis a quick look up in DMV registration fee calculator and it seems CA want to collect Tax for the selling price of the car in order to register. That is about $2k tax for me. Is that correct?
No. You can look on the CA DMV website, but you probably have 10 days from the date you give them as your move in date. Tell the lender and they should switch the tax to the rate in your new city and adjust the payments. If you paid all the tax due in MN already, you’re probably already done. If you have less than 7,500 miles on the car, there could be emissions issues.
What kind of emission issue? Yes it is leas than 7500 miles but it is brand new car (lexus rx) with 50 state emission.
MN collect all usage tax up front. I paid that with MN rate which is obviously leas than CA. So CA is not asking to collect the difference upon registration ?
Okay- no issue! When there used to be non-50 state cars, there could be a big problem. You’re good.
I suspect if you’ve paid all the tax in MN that CA would want to charge on (the full payment itself), then I suspect you won’t be paying it again in CA. Lexus Financial should be able to tell you without a problem. I don’t think they’ll want the difference unless you just got the car. See what Lexus Financial says, as they’re the ones that will pay the tax I’m pretty sure.
States will typically prorate usage tax if you can send them proof of canceling the plate. I know AZ and MA do it…