You better hope CDTFA allows for an exemption, because when you bought it from the out of state dealer you were indeed:
A CA resident
Intending to use the car in CA
Didn’t pay tax out of state to the dealer
Not registering it in CA under your name and going with the flip may allow for an exemption but it is unclear.
Read this from CDTFA:
"You must report your purchase of a vehicle subject to use tax. In general, use tax applies to purchases of vehicles for use in this state when an amount for sales tax is not paid to a California dealer. This includes purchases from out-of-state sellers, private parties, or California dealers when delivery of the vehicle is taken out of state. Unless an exemption or exclusion applies, you must pay use tax on your vehicle purchase. Generally, you will pay the use tax when you register your vehicle with the Department of Motor Vehicles (DMV).
However, if you purchased a vehicle without completing registration and paying the use tax to the DMV, you must pay the use tax directly to the CDTFA. You can report your purchase of a vehicle and pay the use tax by using the CDTFA’s online services and selecting the option to File a Return or Claim an Exemption for a Vehicle, Vessel, Aircraft, or Mobile Home under the Limited Access Functions."
This is super helpful stuff, thank you. I will call them on Tuesday. I have to admit it is getting too complicated and in this case I may prefer to just title the car and use it.
I would not give up, but get solid answers from a supervisor @ DMV HQ in Sac with an employee ID# and name (along with date and time) and also the same thing with a supervisor @ CDTFA HQ in Sac as well.
I have been given incorrect info from DMV staff in field offices several times.
I didn’t read this whole thing, but an org w/ which I’m associated had a sales tax question (vendor wanted to charge sales tax on services we offer that we were 99.9% sure should not result in sales tax), and our exec director placed a call to the CDTFA.
CDTFA agreed w/ us and even sent us a letter via e-mail a few days later (from an attorney there!) to document this.
Issue resolved and resolved pretty quickly, actually.
A car is never insured by the manufacturer once it gets to the dealer’s lot. The second he drives off the lot or a shipper picks it up, it is the customer’s responsibility. Most dealers require proof of insurance for this very reason even if it isn’t legally required.
Life isn’t black and white, I can come here and ask for a second opinion (which I received) and ask a lawyer as well. Lawyers aren’t always right either.
Super helpful as well. I will call them Tuesday morning. If they tell me I can’t do that without pay use tax I am cancelling the deal. Poor buyer, waited for so long.
I am not giving up yet, but I do incline to go with “meh too much hassle, isn’t worth it, will just keep the car”.
Will call the CDTFA Tuesday morning, but I don’t have my hopes high, as I tried to get a refund from those guys for a car I sold (a few years ago) like two days after receiving the title in the mail, and asked my sales tax back, and they rejected my claim.
Yes but the difference is that if attorney you’ve hired to represent you, gives you false info and you suffer a loss, it would fall on them and likely their E&O policy.
You should have washed this through a wholesale dealer (they will usually just take a small fee) or at least have used something like a Montana LLC (or any LLC). Much better ways to achieve what you are trying to do here. I would do some searching… In NJ we call this curbstoning and it is not legal.
lol car wouldn’t pass smog it was modified
Titled it in SD under my wife and CA said since it was released to me I was on the hook even with the receipts I provided smh lesson learned
