Class Action Lawsuit against California Rip-off Sales Tax?

[Sherman Bird]

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.

I was walking one evening just after dark. I happened upon a bullfrog who told me his name was Jeremiah. We started chatting and we heard a dog barking in the distance. I asked him where he was going and he said he was on the road to Shambala. He was seeking Joy to the world, so he said. At that instant, 2 more dogs barked in the distance. We proceeded further down the road in relative silence. I realized it was a Three Dog Night.

 

[runamuck]

What did your sales order say for how sales taxes were calculated?

In Texas, you pay tax on the sales price not the MSRP.

I think you pay tax on the difference..after trade in is deducted.

 

[John Jensen]

When I bought my 2016 California taxed on the MSRP. When I bought my 2020 they taxed on the discounted price plus their 85.00 DOC fee.

 

[TestPilot57]

I probably already commented on this rather old thread. But.

I'm not sure how Vermont handles sales tax on NEW vehicles. What I DO know is that they charge sales tax on the GREATER of actual price paid, or "book value" on used vehicles. Not sure what book they use.

My son bought a 1960 F100 last year. Paid like $3000 for it, which WAS a good price, but not offensively so. The DMV wanted to charge him tax on a value of $17k. Thankfully, they (the DMV) will accept the valuation provided by an accredited appraiser. So my son paid the $150 or whatever it was and saved himself several hundred in the process, but it was hooey. I WILL say, the appraiser was very sympathetic and gave a very good (low) value. BUT, you can't get an appraisal until the vehicle is inspectable! So he had already put probably $1k more into it and dozens if not a hundred or more hours to get it that way. Imagine someone pays $1000 for a basket case, restores it to better-than-showroom by spending $50k. It will then get appraised for $75k. Obviously, in that case they're better off biting the bullet and accepting the $17k valuation, but IT SUCKS!

 

[TestPilot57]

I probably already commented on this rather old thread. But.

I'm not sure how Vermont handles sales tax on NEW vehicles. What I DO know is that they charge sales tax on the GREATER of actual price paid, or "book value" on used vehicles. Not sure what book they use.

My son bought a 1960 F100 last year. Paid like $3000 for it, which WAS a good price, but not offensively so. The DMV wanted to charge him tax on a value of $17k. Thankfully, they (the DMV) will accept the valuation provided by an accredited appraiser. So my son paid the $150 or whatever it was and saved himself several hundred in the process, but it was hooey. I WILL say, the appraiser was very sympathetic and gave a very good (low) value. BUT, you can't get an appraisal until the vehicle is inspectable! So he had already put probably $1k more into it and dozens if not a hundred or more hours to get it that way. Imagine someone pays $1000 for a basket case, restores it to better-than-showroom by spending $50k. It will then get appraised for $75k. Obviously, in that case they're better off biting the bullet and accepting the $17k valuation, but IT SUCKS!

By the way, I understand the reason behind all this - too many people were taking advantage of the situation and writing bill of sales for way less than the actual transaction. But it hits all the honest people too.

 

[John Jensen]

By the way, I understand the reason behind all this - too many people were taking advantage of the situation and writing bill of sales for way less than the actual transaction. But it hits all the honest people too.

I would do that on a private sale. I accept taxation of products purchased commercially, that is from a business. But I disagree that a private sale should be taxed. Politicians have taxed us every way they know how and even invent new ways. Sick and tired of their taking our money whenever they want.

 

[TestPilot57]

I would do that on a private sale. I accept taxation of products purchased commercially, that is from a business. But I disagree that a private sale should be taxed. Politicians have taxed us every way they know how and even invent new ways. Sick and tired of their taking our money whenever they want.

The problem the States have is when someone has a 1932 Deuce Coupe, built to the max by Boyd Coddington and there's a Bill of Sale for $2000. And while it pains me to say so, I do agree that taxes should be paid on the actual current value. IOW, if you register (and insure) the vehicle when you buy it and it's really only worth $2000, pay that fee. If, "later on" you decide to restore it, so what?!!

On The Other Hand, here in Vermont, commercial vehicles have a sales tax cap. We've used it twice, and we don't have fancy TT units. Basically, any CMV with a registered weight above 10,000 # pays a maximum sales tax of $2,075, or roughly the equivalent of a $35k purchase price. Of course, it cuts both ways, since the yearly registration fee MORE than makes up for it...

 

[GTyankee]

If you live in California, you pay $477 for a 2016 Ram 1500

We had a Governor not long ago call jerry brown jr
He misled everyone by saying that he was going to build a High Speed Rail that would go from San Diego up to Sacramento. He convinced the voters that it would be great for everyone that travels.
He was given the OK to build it by the voters, as soon as it was under construction, the Engineers & Planners said that the High Speed Rail was never intended to actually go from San Diego or even into Los Angeles.
It could only be engineered to go from Bakersfield to Sacramento & no one but Willie Nelson ever goes to Bakersfield.

BUT we sure have to pay extra taxes for the train to nowhere worth going to

By the way, the current governor thinks that the train is a great idea & he is a crook too

 

[18MegaRam]

If you live in California, you pay $477 for a 2016 Ram 1500

We had a Governor not long ago call jerry brown jr
He misled everyone by saying that he was going to build a High Speed Rail that would go from San Diego up to Sacramento. He convinced the voters that it would be great for everyone that travels.
He was given the OK to build it by the voters, as soon as it was under construction, the Engineers & Planners said that the High Speed Rail was never intended to actually go from San Diego or even into Los Angeles.
It could only be engineered to go from Bakersfield to Sacramento & no one but Willie Nelson ever goes to Bakersfield.

BUT we sure have to pay extra taxes for the train to nowhere worth going to

By the way, the current governor thinks that the train is a great idea & he is a crook too

And the current Gubner is a short-timer. You can count the days now.

 

[John Jensen]

And the current Gubner is a short-timer. You can count the days now.

Hoping it hppens

 

[GTyankee]

are you kidding, or just hoping, he has emptied all funds to give money away, buying votes

I am waiting for the day when they tell us why there are so many State taxes on California Gasoline
There are taxes on taxes for gasoline & then there is the 22 cent tax that no one seems to know what it is for, even the Auto Club could not get an answer, how can there be a 22 cent gas tax that nobody knows what it is for

 

[kirk w dunn]

same with phones.......you have to pay tax on MSRP

rebates are calculated after.....if the dealer has a discount than you dont pay tax but on rebates they come in after......so cal resident and yeah it sucks

 

[18MegaRam]

are you kidding, or just hoping, he has emptied all funds to give money away, buying votes

I am waiting for the day when they tell us why there are so many State taxes on California Gasoline
There are taxes on taxes for gasoline & then there is the 22 cent tax that no one seems to know what it is for, even the Auto Club could not get an answer, how can there be a 22 cent gas tax that nobody knows what it is for

THEIR TYPICAL NEED FOR TAXES, "IT'S FOR THE CHILDREN". Sorry, lock was on and I'm too lazy to retype.

 

[CanRebel]

Good luck. doubt you will get anywhere with it. I know different country. I'm in Toronto area.
When I got my Rebel 2 weeks ago. Dealer gave me 'discounts' which lowered the sale price.
Then include all extra stuff I added. Then I paid tax on that. The 'rebates' were deducted at the end.
Normal process here for everything, not just cars.