Question: Should I not consider buying an RV for sale listed in CA? Heard taxes, etc are high?

[bpaikman]

We’re actively searching for an RV and occasionally a fair candidate pops up in CA. I’ve heard so many bad things about CA ( sorry) I was wondering if there’s some caveats I should be aware of?

 

[NWIP]

Your going to pay sales tax in your home state, although you will need fuel to get out of the state after purchase ?

 

[Jireh Financial]

Some of the sales tax question comes down to what states are "reciprocating" states with CA. Some states are required to collect sales tax and if you pay where you buy, you might get credit in your state but no return. Some people will do an out of state delivery so the tax rules change again. There is no blanket rule when it comes to sales tax. Each state has rules and how they relate between each other does vary. GENERALLY you are responsible to pay only the rate where you live. Some states have rules that apply to dealerships and what they are required to collect on a transaction.
Before making the trip, ask the CA dealership what he is REQUIRED to do. You should also ask your local DMV what to expect. You certainly don't want a surprise when you walk up to the counter to register and plate your new unit.
These types of topics are always filled with gray area and state governments don't make it any easier.
Let me know how we can help.
Thank you,
Ken

 

[bpaikman]

Some of the sales tax question comes down to what states are "reciprocating" states with CA. Some states are required to collect sales tax and if you pay where you buy, you might get credit in your state but no return. Some people will do an out of state delivery so the tax rules change again. There is no blanket rule when it comes to sales tax. Each state has rules and how they relate between each other does vary. GENERALLY you are responsible to pay only the rate where you live. Some states have rules that apply to dealerships and what they are required to collect on a transaction.
Before making the trip, ask the CA dealership what he is REQUIRED to do. You should also ask your local DMV what to expect. You certainly don't want a surprise when you walk up to the counter to register and plate your new unit.
These types of topics are always filled with gray area and state governments don't make it any easier.
Let me know how we can help.
Thank you,
Ken

i’m usually looking at private owners. Not dealers. I want to keep you on speed dial ?

 

[jsuprock]

IF and I mean IF this Motorhome is over $100,000 in price you would be smart to consider getting a Montana LLC and buy you coach that way. Pay no Sales Tax, NONE. Also licensing fees are very reasonable. Several service companies and or law firms in Montana do this for about $500. They set up the LLC and will actually register the Motorhome get the title and plates for you too (maybe another $400) If you are in a state with sales tax in the 6% to 12% range you just saved $5,000 to $11,000 on just a $100,000 coach. Buying a bigger coach? Save more money.


Johnnie

 

[Texas Clodhopper]

IF and I mean IF this Motorhome is over $100,000 in price you would be smart to consider getting a Montana LLC and buy you coach that way. Pay no Sales Tax, NONE. Also licensing fees are very reasonable. Several service companies and or law firms in Montana do this for about $500. They set up the LLC and will actually register the Motorhome get the title and plates for you too (maybe another $400) If you are in a state with sales tax in the 6% to 12% range you just saved $5,000 to $11,000 on just a $100,000 coach. Buying a bigger coach? Save more money.


Johnnie

Keep one eye open when you go to sleep because the taxman is lurking. Several states are cracking down on this scenario. To keep it legal, buy a home in Montana and claim it as your domicile. Of course, the Montana attorneys will tell you no worries but see if they show up in court to defend you. Oh, that's right, for a few thousand dollars more they will.

 

[jsuprock]

Keep one eye open when you go to sleep because the taxman is lurking. Several states are cracking down on this scenario. To keep it legal, buy a home in Montana and claim it as your domicile. Of course, the Montana attorneys will tell you no worries but see if they show up in court to defend you. Oh, that's right, for a few thousand dollars more they will.

Oh, You are drinking too much coffee.

Sure if you live in a lefty state (Washington, New York, New Jersey, Michigan) that is spending twice what they bring in - in taxes they may be going after a few people, but most likely it's the neighbor who hates you that turned you in. Be smart about it. Form an LLC that is XYZ Leasing, Don't park the RV in your driveway, you will be fine.

I guess I can't even talk to you about becoming a citizen of South Dakota either....

 

[MemoriesByTheMile]

LLCs are a tool used by many people who want to protect assets.
Keep the focus on asset protection.
Be sure you consider and price insurance too, if you consider the LLC route. Might be a little surprise there.

 

[Jireh Financial]

i’m usually looking at private owners. Not dealers. I want to keep you on speed dial ?

Glad I could help. My cell is 517-930-2721 and that is always on.
Thank you,
Ken