Class Action Lawsuit against California Rip-off Sales Tax?

[Regcabguy]

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.

I paid tax on sales price and I'm in California. That was in 2007. Geez,I wasn't aware of the change. Tax hungry suckers

 

[toneyjay]

Here in SC doesn't matter what you buy. Ram, Chevy, Ford, or Lamborghini. It caps at $500. So unless you buy a car for under 10k. You only pay $500. If car is under 10k you'll pay less. But then property taxes get you every year but that varies by county.

 

[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 never have understood how being taxed every time a car is sold works out to be fair!

 

[Kukailimoku]

Just moved to Maryland and just bought a 20 Laramie when I got here.
Same thing. Tax you on the retail price before the discounts. But the technicality on Maryland is that the REBATES and CASH BACK are exactly that. Stuff they pay you back AFTER the transaction.

Shiesty bastages.

 

[Kukailimoku]

Used to live in Hawaii, and if you bring a new vehicle that you bought at the lower 48, they made you pay Hawaii tax when you bring it off the boat (or left you alone if you could show you paid the sales tax on the mainland.

Maryland is even worse than HI: They want to know what you paid the state you bought it in, then charge you the delta between that and Maryland's rate and you pay the delta to MD. EVEN FOR A THREE YEAR OLD JEEP THAT I MOVED INTO MARYLAND!

It's so ironic to move from the west to an easetrn state that was one of the original colonies which rebelled from England because TAX, no be all socialist-communistic about current taxes...

 

[JoeCo]

It's so ironic to move from the west to an easetrn state that was one of the original colonies which rebelled from England because TAX, no be all socialist-communistic about current taxes...

Kind of like NY or MA? Yeah it's a mixed bag over here, some states are reasonable and others have been overtaxed forever.

 

[JoeCo]

I never have understood how being taxed every time a car is sold works out to be fair!

It isn't fair...thankfully most states have the trade in sales tax credit. I'm shocked my state does, usually they love overtaxing anything they can, but at least we have that. I understand paying the sales tax on the difference each time, but that would be tough to have to pay full sales tax each time regardless of trade in value.

 

[FRED Pirelli]

You need to stop reading or viewing all that fake news. It's warping your knowledge.

Faux news will do that to a person.

 

[4airstreamer]

Same with many things in California. Go to a cellular store and sign up for a 2 year contract to get the latest iPhone for “free” and you pay the sales tax on the item you payed $0 out of pocket for. $800, $1,200, whatever.

I would and do support lower taxes in this state, and my salary is paid by taxes. I’d take a pay cut if it was representative in the amount of taxes I pay, sales, income, property, fuel, etc.

I am terrified if Gov Newsom gets what he wants and begins taking income on people in other states who are receiving their retirement they earned while working in California. I would have to do some math to figure out if staying here at a higher pay scale and paying income tax once I move out of this sinking state, is worth it, or if I move to another state and begin contributing to a retirement program that isn’t taxed, but at probably half of the income I have in California.

He is talking about CalPers and CalStrs employees. State employees are retiring and changing their mailing address to South Dakota and not really leaving the state full time. But I think you should leave Cali...

 

[Groo]

a lovely discussion on the taxes paid when buying a vehicle.

 

[JoeCo]

a lovely discussion on the taxes paid when buying a vehicle.

You make a good point....gentlemen, there surely is a forum elsewhere on the internet for this kind of political BS.

Not to mention, just like any political conversation, it's going nowhere and will have no effect on anyone, so can we please drop it and get back to vehicle taxes?

 

[32blownhemi]

Come on it's just getting interesting!

 

[JoeCo]

When I don't like how a thread is going I just don't bother to click on it.

I usually do too, but in this one I am interested in information that pertains to what this thread is actually about, not what it turned into.

Seriously don't want to get into further unrelated arguments or discussion, would much prefer to see this thread get back on track.

 

[Graygoose]

well for me, I apologize for my part leading into anything politics. But when it started as why heavy taxes, etc, etc....its easy to turn into politics, as thats who taxes us and why.

 

[TestPilot57]

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 haven't read all the other responses, but my guess is that most if not all states that charge Sales Tax on automobiles have a similar provision - you pay sales tax based on the greater of price paid or actual value.

My sone recently bought a 1960 F100. Runs and drives, but is not inspectable, needed a fair amount of work. I think he paid $2-3k for it.

Here's the kicker - the state wanted tax based on a "low book" value (as if there can be something like that on a 60 year old vehicle - just way too many factors) of IIRC $16k.

His only recourse is to have it appraised by a certified appraiser. And the most the appraiser can devalue based on book value is about 50% based on condition and mileage. And of course he has to pay the appraiser.

For more modern vehicles I understand. Another case in point - I sold my son my '15 RAM Sport, moderately loaded with under 40k miles on it for $10,000. It wasn't an "arms length" deal, and I understand why they want the extra dough. But fair is as fair does. If he got a deal on the '60, OK - pay some extra tax. But when they arbitrarily say "It cannot be worth less than $X" there is a problem. What if it had no motor and the frame was so rusted that it busted in half? He's still supposed to pay tax on $16k?

 

[MADDOG]

Gentlemen,

This thread has been edited to remove the political commentary which is not in keeping with forum rules.

Put this thread back on track and discuss the OPs initial post without such comments included.

 

[TestPilot57]

$500 maximum no matter how high the actual price in my red state of South Carolina and even that is too much compared to the $300 it was previously.

Strangely enough, considering the aforementioned sales tax based on a maximum of what you paid or what it's worth in Vermont, there is a cap on the amount of tax you pay when registering a truck for more than 10,099#. The maximum tax levied on such is $2,075, which at the 6% rate equates to just under $35k purchase price.

So the tax on your $200k Mercedes/Kenworth/Western Star is less than half that of a well equipped half ton pickup. Of course "registration fees" are another story...

 

[TestPilot57]

I never have understood how being taxed every time a car is sold works out to be fair!

Maybe it depends on where you live. But in Vermont I feel it's sorta fair.

You buy a "car" (to keep it simple) for $50k and pay the 6% on it - $3k.

5 years from now you buy another car for $50k. BUT you sold the old one for $20, so you only pay tax on $30k, or $1800.

So the guy that bought your old truck pays the 6% on the $20k, or $1200, and the state gets the amount on the $50k vehicle that was introduced to the system.

Of course it probably goes a few steps further - the guy that bought your old truck sold HIS old truck for $5k so he only pays tax on $15k but the other guy pays it on the $5k. And so on and so forth down the line.

And this is why they charge tax based on the greater of what you paid versus what it's worth - too many fakes bills of sale or non-arms-length deals.

 

[TestPilot57]

Maryland is even worse than HI: They want to know what you paid the state you bought it in, then charge you the delta between that and Maryland's rate and you pay the delta to MD. EVEN FOR A THREE YEAR OLD JEEP THAT I MOVED INTO MARYLAND!

Same in Vermont. Except that maybe three years is the cutoff - if you bought it more than three years ago they don't charge you the difference (if there is one).

 

[El Huapo]

Not if you bought it in Califunny. Look at your contract, Those rebates are listed after the entries for price and taxes.

John, Yes I can read and I had to pay the extra tax. What I'm trying to do is get people together to FIGHT IT, comprendez?