Avoiding sales tax

[GeorgeRa]

Originally Posted by wrightstuf

Sorry, I couldn't resist...
Attachment 6582

I was there in Bay Area, I think it was in 1978, still remember predictions of the total state collapse, practically being sucked by the ocean.

[GeorgeRa]

Originally Posted by cruising7388

The beauty of Oregon is that you don't have to move far. You can live in coastal Oregon which politically is left of Lenin or you can live in Eastern Oregon which is right of Ghengis Kahn.

......and there is the Multnomah County.

[cruising7388]

Originally Posted by GallenH

And I totally disagree that a family with no kids should be paying less than one that does have kids. Again, just me.

This is certainly an issue on which folks could reasonably disagree.

But with respect to the fairness of CA sales taxes, try vindicating either the logic or the fairness of this:

You can buy tax free candy til you collapse in a diabetic coma, but you can't buy a vitamin pill or a bottle of aspirin without paying sales tax.

[avanti]

Originally Posted by cruising7388

But with respect to the fairness of CA sales taxes, try vindicating either the logic or the fairness of this:

You can buy tax free candy til you collapse in a diabetic coma, but you can't buy a vitamin pill or a bottle of aspirin without paying sales tax.

That is simply whataboutism. We don't tax alcohol or cigarettes primarily for revenue--we do it to discourage behaviors that are bad for the individual and extremely expensive for society. In a perfect world, there would be a precise tax calculated the exactly pays the social cost of every activity. In practice, we are nowhere near smart enough to do this, so we pick the low-hanging fruit where the cost is extremely obvious and generally non-controversial. This isn't "punishing" anybody. It is simply cost-recovery from the individual to the community.

In any event, "fairness" has nothing whatsoever to do with the ethics of following the law. It is the law. As George and others have said, you have your share of the power to change the law. Or, there are plenty of other places to live. In the mean time, we have all agreed to follow all laws to the best of our ability. This is the social contract.

[GallenH]

I agree with Avanti and, actually, I believe that you all have valid points. Besides, I think that the discussion is getting too far afield of the forum, which I love. I appreciate all of your points of view. I've gotten a lot of help from you individually. So right now I'm sitting here tipping one for each of you. Cheers

[GallenH]

And in case I've given you a faulty impression, It's 6:00pm where I am now.........good
tipping time.

[hepcat]

Originally Posted by wrightstuf

Hi folks!
Brand new to the class B thing and have begun my hunt for the right vehicle in earnest!

What I plan to do is to purchase and have it delivered to my friend's house in Montana. I will set up an LLC there and name my company "-- ---- Fine Coffee."
Coffee will be purchased at Costco in bulk. That's what I also drink in my K-cup dispenser at home which I also bought at Costco. I'll sell it out of the side door in my Travato! That is if anyone considers Kirkland coffee "fine."
The California Board of Equalization will issue you an exemption from sales/use tax If...and that's a big IF you can meet all the requirements for the first 12 months after delivery.

Thoughts?

If you have a residence and/or ARE a resident of CA, and you incorporate a business in another state that will allow you to license vehicles to that corporation there, but you bring the vehicle into CA, you'll likely have to have it licensed in BOTH locations. You'll be exempt from taxes on those items you buy for resale (like coffee,) but not items that you use for the business... such as the vehicle, fuel, and maintenance. CA does not allow residents to operate vehicles in the state without paying the appropriate road use/sales tax to the State.

Check with CA DMV AND your accountant before you end up getting slammed for a LOT of fees and penalties you could have avoided.

[wrightstuf]

Originally Posted by hepcat

If you have a residence and/or ARE a resident of CA, and you incorporate a business in another state that will allow you to license vehicles to that corporation there, but you bring the vehicle into CA, you'll likely have to have it licensed in BOTH locations. You'll be exempt from taxes on those items you buy for resale (like coffee,) but not items that you use for the business... such as the vehicle, fuel, and maintenance. CA does not allow residents to operate vehicles in the state without paying the appropriate road use/sales tax to the State.

Check with CA DMV AND your accountant before you end up getting slammed for a LOT of fees and penalties you could have avoided.

Thanks! That's exactly the kind of input I was looking for.
Unfortunately, there are some folks on this forum that seem to automatically assume you have bad intentions. No thought whatsoever that you might be legitimate and are simply looking to dodge taxes...well, DUH! Try to reason that just maybe you are trying to set up a really fun business and have fun traveling while doing it? Nope, you are a tax dodging scum. Opinions are fine, everyone has them. But, hey this is supposed to be a forum.
Oops, kinda went off there. I also want my daughter to be able to use my van to sell coffee out the door here in San Diego too. She loves the idea. There was a guy selling coffee from his van on PCH in Cardiff. He was killing it.
Definitely will have to tread carefully and make certain it's all done above board and by the letter of the law because of the black cloud left by people who DID simply try to get out of paying sales tax.

[hepcat]

Originally Posted by wrightstuf

Thanks! That's exactly the kind of input I was looking for.
...folks... automatically assume you have bad intentions. No thought whatsoever that you might be legitimate and are simply looking to dodge taxes...well, DUH! ... tread carefully and make certain it's all done above board and by the letter of the law because of the black cloud left by people who DID simply try to get out of paying sales tax.

You're welcome. Not to put words in anyone's mouth here, I think that perhaps your choice of words may have influenced folks' impression of your posts. "Dodging" taxes is criminal fraud. Using existing tax law to minimize your tax burden is entirely appropriate and is what EVERY accountant does for their clients.

So, if you're just trying to minimize your tax burden by using those tools the law affords you, more power to you. It sounded quite a lot though, from the way your posts were written, like you were trying to figure out how to commit tax fraud.

Good luck with your endeavor!

[wrightstuf]

Thx, point well taken. Will try to carefully word posts from now on!

[bigoldbob]

My residency is California. I own section in Montana and do business there. My MH is registered in California because if I register in Montana and get caught the penalties are huge. No thanks!

[stevegoldfield]

I bought my RV in a different county with lower sales tax. Ours is about 10 percent. They charged me the tax where I live and not where I bought the RV. In fact, the dealer tried to charged me sales tax on various charges over and above the cost of the vehicle. I refused to pay that as such items, like labor, are not subject to sales tax in California. I wonder how many other buyers that dealer cheated in that way. (The sales manager pleaded that it was how their algorithm was set up, only one of the crooked things they tried to pull on me.) If you don't want to pay California tax, move somewhere else.

[bigoldbob]

I bought in Tennessee. Home in Calif., property in two counties, Business and land in Montana. Pay real estate taxes in two states and three counties...but MH is registered where I live over six months of the year. And the most expensive tax rate. BECAUSE do not want to pay penalties! Not worth it!

[bigoldbob]

Also, my son just moved to Nevada because California taxes are so crippling!

[wrightstuf]

Originally Posted by stevegoldfield

I bought my RV in a different county with lower sales tax. Ours is about 10 percent. They charged me the tax where I live and not where I bought the RV. In fact, the dealer tried to charged me sales tax on various charges over and above the cost of the vehicle. I refused to pay that as such items, like labor, are not subject to sales tax in California. I wonder how many other buyers that dealer cheated in that way. (The sales manager pleaded that it was how their algorithm was set up, only one of the crooked things they tried to pull on me.) If you don't want to pay California tax, move somewhere else.

Dang, loved your post up until the last sentence.
Yea, I should sell my beautiful home in Carlsbad that I own free and clear, then move somewhere else so I can save 6k in sales tax...umm, ok.
Did you even read any of this thread?
Look, if I simply wanted to not pay sales tax I'm certain I could do it successfully

[cruising7388]

Originally Posted by hepcat

CA does not allow residents to operate vehicles in the state without paying the appropriate road use/sales tax to the State.

It's not necessarily the case. A CA resident who operates a vehicle that he or she registers in another state is subjected to CA registration requirements and use taxes. But if the owner of a vehicle that is titled and registered out of CA leaves it with you, as long as the out of state registration is current, you can drive it til the wheels fall off without CA registration or use tax consequences.

[bigoldbob]

The whole point is your taxes are based on residency. You pay taxes based on your home six months of the year. If your parents own a vehicle, pay the yaxes where they live but leave it at your home in another state, as long as they still own the vehicle and renew the registration every year, you do not register it in your name and you do not pay taxes where you live. I know someone who does this. A pickup in his parents name registered in their home state is here in California with out of state tags and fees. However, if he is ever reported.....he could face fines. But DMV is so understaffed he will likely never get caught...and don’t think anyone will report him. I know I won’t. The truck is so old...and the California fees not worth DMV man hours to go after him. But a $100,000. Motorhome? Fair game!

[cruising7388]

Originally Posted by bigoldbob

The whole point is your taxes are based on residency. You pay taxes based on your home six months of the year. If your parents own a vehicle, pay the yaxes where they live but leave it at your home in another state, as long as they still own the vehicle and renew the registration every year, you do not register it in your name and you do not pay taxes where you live. I know someone who does this. A pickup in his parents name registered in their home state is here in California with out of state tags and fees. However, if he is ever reported.....he could face fines. But DMV is so understaffed he will likely never get caught...and don’t think anyone will report him. I know I won’t. The truck is so old...and the California fees not worth DMV man hours to go after him. But a $100,000. Motorhome? Fair game!

Fines? Fine who? As long as the registered owner is not physically in California there is no DMV violation by the parent. Nor can the son in CA be fined for not registering a vehicle he doesn't own. Every once in a while, the gummint gets hoist on its own petard.

[bigoldbob]

I suspect you are right. There are tons of snowbirds who leave trailers, motorhome in another state...and no fines are incurred. Point tho...vehicle is taxed to the OWNER and owners state of SIX month or more residency. Okay, I quit.

[cruising7388]

Originally Posted by bigoldbob

I suspect you are right. There are tons of snowbirds who leave trailers, motorhome in another state...and no fines are incurred. Point tho...vehicle is taxed to the OWNER and owners state of SIX month or more residency. Okay, I quit.

IMO, leaving a vehicle you legally own in the permanent custody of anybody has potentially horrendous legal consequences if that vehicle ends up in an injury accident caused by driver negligence or even an equipment defect.