Class Action Lawsuit against California Rip-off Sales Tax?

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El Huapo

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My complaint: You or I buy a new Ram that MSRP's for $50K as an example. Say it has been discounted by $20K for this discussion. So you pay $30K. When the State of California's Sales Tax is figured, it is figured on the $50K price, even though you paid $30K. So there goes an extra $1600 plus out of your pocket por nada. Maybe other states have this scam going too, I don't know but feel free to chime in if so.
A past example: Some years back, older friends of mine who had worked in California and earned a retirement benefit there then moved to another state to retire to. The Great State of California was making them pay State of California Income Taxes on the retirement benefits (money) that had been earned years before in California even though they didn't live there anymore. Someone started a Class Action Lawsuit and the Great State of Taxifornia lost it's case and refunded the money.

Now I'm sure a lot of "Other Folks" who don't live here are getting a hoot out of this and that's fine. Just please don't hog the forum bandwidth with counter-productive remarks, thanks.

My question: Does anyone know if this particular issue has already been or is being addressed in a lawsuit? Is anyone out there cozy enough with a good lawyer who would like to take this on? I'm old and ornery enough, but don't have the money or energy to take this to its end. It probably should be a much younger person who lives closer to a city with bigger courts to do this, I'm in a podunk with few resources.
To the Forum Moderators: This is about money more than politics, so don't dump on it, thanks. We know that both sides in the California Legislative body are in cahoots to grab our dollars, so this should count as non-partisan. I hope so anyway.
To all forum readers: Thanks for putting up with my rant and I hope I got it out there in a comprehendible manner, apologies if not. :hat:
 
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crash68

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How is that even legal, taxing you on money your not spending. I bet they charge sales tax if you sell you car to a family member for what the KBB retail is on a used vehicle. SMH
No such scamming here in Michigan, if you sell your car to a family member no tax is charged.
 
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El Huapo

El Huapo

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How is that even legal, taxing you on money your not spending. I bet they charge sales tax if you sell you car to a family member for what the KBB retail is on a used vehicle. SMH
No such scamming here in Michigan, if you sell your car to a family member no tax is charged.

Hi Crash, No, no taxes when selling or giving to family. Not even requiring a smog check---now that surprises me.
But you're exactly right---"How is that even legal?" So I think there might be a case there, but maybe it's old news and already been lost, dunno. I bought my truck in December for $29K, discounted from $42K, but I had to pay tax on the $42K. I just read on one of the other threads that another person mentioned the same rip-off and have been stewing on it since and the class action idea came up---takes me a long time, I know, but you work with what you got, right?
 

KeithP

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To be clear; I am not an attorney or tax expert by any stretch of the imagination. Reading your initial post your “past example” refers to tax on income while your complaint is about retail sales tax. Seems like two different colored horses to me. Not saying your complaint isn’t legitimate, just that your comparison may not be a usable argument. I’ve done exactly two smart things in my life. One was marry a woman 7 years younger and who is at least twice as intelligent as me. And Two, I didn’t argue when she wanted to move here to Texas 27 years ago.
 
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El Huapo

El Huapo

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To be clear; I am not an attorney or tax expert by any stretch of the imagination. Reading your initial post your “past example” refers to tax on income while your complaint is about retail sales tax. Seems like two different colored horses to me. Not saying your complaint isn’t legitimate, just that your comparison may not be a usable argument. I’ve done exactly two smart things in my life. One was marry a woman 7 years younger and who is at least twice as intelligent as me. And Two, I didn’t argue when she wanted to move here to Texas 27 years ago.

Understood, different horses, yes. Only showing that the State doesn't always win---especially if when "most" people would say "Whaaat?"
 
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El Huapo

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I believe if those were rebates they are treated like the manufacturer made payments for you and thus is taxable in many states.

Then perhaps The manufacturer should pay that part of the taxes---hah! not likely. They can put whatever cute name they want on it, I object to paying a sales tax on money I didn't spend. And I know it's a long shot, but maybe someone with more on the ball than me could make it change. It just feels wrong.
 
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El Huapo

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Same in Virginia, tax on MSRP regardless of the sale price.

I'm giving a "Like" to acknowledge your contribution, right? Not because I like Virginia's methods either. Thanks for helping Musky!
 

chri5k

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I wish you luck in this quest. I think it is a fat chance you will find a sympathetic judge in CA. Their salaries are paid by taxes of one sort or another. If it got to federal court, again, good luck with the 9th Circus out there.
 

Midknight

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Then perhaps The manufacturer should pay that part of the taxes---hah! not likely. They can put whatever cute name they want on it, I object to paying a sales tax on money I didn't spend. And I know it's a long shot, but maybe someone with more on the ball than me could make it change. It just feels wrong.

I hear what your saying, then again they would probably be tax exempt thus the reason going after the buyer. I'm not sure but I'm assuming, I know how that goes, the reason they call them "cash back" rebates makes it sound like you paid the full amount and they gave you cash back. There will always be some kind of defensible lingo mixed in somewhere. These dealerships know themselves and don't care. We do make out on the flip side when trading in a vehicle because it's value is deducted from the taxable sale amount since the tax was already paid on the initial purchase.
 

dexter

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My complaint: You or I buy a new Ram that MSRP's for $50K as an example. Say it has been discounted by $20K for this discussion. So you pay $30K. When the State of California's Sales Tax is figured, it is figured on the $50K price, even though you paid $30K. So there goes an extra $1600 plus out of your pocket por nada. Maybe other states have this scam going too, I don't know but feel free to chime in if so.
A past example: Some years back, older friends of mine who had worked in California and earned a retirement benefit there then moved to another state to retire to. The Great State of California was making them pay State of California Income Taxes on the retirement benefits (money) that had been earned years before in California even though they didn't live there anymore. Someone started a Class Action Lawsuit and the Great State of Taxifornia lost it's case and refunded the money.

Now I'm sure a lot of "Other Folks" who don't live here are getting a hoot out of this and that's fine. Just please don't hog the forum bandwidth with counter-productive remarks, thanks.

My question: Does anyone know if this particular issue has already been or is being addressed in a lawsuit? Is anyone out there cozy enough with a good lawyer who would like to take this on? I'm old and ornery enough, but don't have the money or energy to take this to its end. It probably should be a much younger person who lives closer to a city with bigger courts to do this, I'm in a podunk with few resources.
To the Forum Moderators: This is about money more than politics, so don't dump on it, thanks. We know that both sides in the California Legislative body are in cahoots to grab our dollars, so this should count as non-partisan. I hope so anyway.
To all forum readers: Thanks for putting up with my rant and I hope I got it out there in a comprehendible manner, apologies if not. :hat:

1st - well written post.

2nd - you now know what it feels like to be a minority - powerless.

3rd - you just scratched the surface of the issue - look at home sales in CA and if you move out.

4th - do the math. Will you make more someplace else, more or less then CA. Stay if you can't make more and then bend over.
 

Jimmy07

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Then perhaps The manufacturer should pay that part of the taxes---hah! not likely. They can put whatever cute name they want on it, I object to paying a sales tax on money I didn't spend. And I know it's a long shot, but maybe someone with more on the ball than me could make it change. It just feels wrong.
Similar to what @Midknight is saying, it depends on how they arrived at the price you bought it for. If the selling price is the MSRP price, and then a bunch of rebates were used to arrive at the $30,000, then it’s no different than using coupons at the grocery store- you pay tax on the full price of the groceries, then the coupons are applied. Now, if the MSRP is $50,000, and you and the dealer come to an agreement that they will sell you the truck for $30,000 without using any manufacturer incentives, then I agree you should only pay tax on the price negotiated to buy the vehicle.
 

Barney556180

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Big government takes big money to run. Voters apparently are okay with the value for taxes paid...
 

chri5k

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Big government takes big money to run. Voters apparently are okay with the value for taxes paid...

To be fair not all voters are OK as noted by some of our fellow RAM owners. CA, like many states, are being ruled by those in the big cities. Unfortunately, the rural folks just don't generate enough votes to have an effective say in the government that rules them.
 
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El Huapo

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I think we all agree that this kind of swindle stinks. I imagine the car dealers & manufacturers plus the legislatures agreed to this deal beforehand, another way to fleece us. Just by putting a different label on the paperwork. Rebate vs discount.
We all know that if a used car dealer had a car advertised at say $10K for a while then put a "Special" sticker on it for $8K and you maybe talked them down to $7K, you'd pay taxes on the $7K.
The difference is all made up BS. And no, I'm not big on conspiracy theories but I do believe that since the big corporations have interchangeable members on their Boards of Directors, the same minds carry the same thoughts and methods from corp. to corp. They don't need to "Sleep together", they are the same people, just moving from one seat to another. Or from corporate seat to gov't seat to corporate seat again.
So I suppose this is me: :beatdeadhorse5:, or perhaps this one: :893karatesmiley-thu But thanks to all for listening (reading) my rant, I feel a little better after venting, have a good day y'all, and stay well.
 
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