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Subject: Re: Do you pay tax when buying a car privately? Posted on: Tue, 15 Mar 2005 12:43:41 -0800

In article <39ov43F660nvsU1@individual.net>, PeterL
wrote:

> "Go Fig" wrote in message
> news:150320051119044921%gofig@mac.com...
> > In article <39ootjF63e53lU1@individual.net>, PeterL
> > wrote:
> >
> > > wrote in message
> > > news:1110911390.559146.319950@l41g2000cwc.googlegroups.com...
> > > >
> > > > PeterL wrote:
> > > > > wrote in message
> > > > > news:1110906644.135697.190150@o13g2000cwo.googlegroups.com...
> > > > > > Hi,
> > > > > >
> > > > > > My brother is looking to buy a new car in california (he is here
> > > > > > working ATM, we are from the UK). If he buys a car from a dealer
> > > > then
> > > > > > there is a fairly large ammount of tax to pay. Do you have to pay
> > > > this
> > > > > > when you buy privately?
> > > > > >
> > > > >
> > > > > How does he buy a new car privately?
> > > >
> > > > I meant a new car to him, not a brand new car. Just in case you want
> > > > to know how we are trying to do it, the best sources I can find are
> > > > ebay, http://www.craigslist.org/ and
> > > > http://cars.kbb.com/go/buyIndex.jsp
> > > >
> > >
> > > I am not a tax professional but no, he don't pay sales tax when he buys
> a
> > > car from a private party.
> >
> >
> > No. A Sales/Use Tax must be paid. If you register the car, the DMV
> > will act as the tax agent, if not... you must pay directly.
> >
> > http://www.boe.ca.gov/pdf/reg1610.pdf
> >
> > (c) PAYMENT OF TAX BY PURCHASER. (1) VEHICLES. Purchasers of vehicles,
> > including off-highway vehicles subject to identification under Division
> > 16.5 of the Vehicle Code, the sales of which are exempt from sales tax
> > under (b) (1), above, shall pay tax to the Department of Motor
> > Vehicles, acting for and on behalf of the board, at the time of making
> > application for registration or identification, except: (A) When the
> > applicant establishes that the tax is inapplicable under the general
> > exemptions in (b) (2) above. (B) When the applicant furnishes to the
> > Department of Motor Vehicles a use tax exemption or tax clearance
> > certificate issued by the board. A purchaser may pay the use tax and
> > penalty, if any, to the Department of Motor Vehicles so as to secure
> > immediate action upon the purchaserÍs application for registration or
> > identification and thereafter apply through the Department of Motor
> > Vehicles to the board for a refund of the amount so paid.
> >
>
>
> How about this section:
>
> (1) Sales tax does not apply to:
>
> (A) Sales of vehicles other than off-highway vehicles subject to
> identification under Division 16.5 of the
>
> Vehicle Code, when the retailer is not licensed or certificated pursuant to
> the Vehicle Code as a manufacturer, dealer,


If you buy a used car in California, from a private party, you will pay
a Use/Sales tax when you register it. If you don't register it, you
still must pay the tax directly.

jay
Tue Mar 15, 2005
mailto:gofig@mac.com



>
> dismantler, or lessor-retailer, subject to the provisions of Section 11615.5
> of the Vehicle Code,1 or
>
>
> >
> > > He does pay tax when he registers the car, that's
> > > a different kind of tax.
> >
> > These are fees.
> >
> > jay
> > Tue Mar 15, 2005
> > mailto:gofig@mac.com
> >
> >
> > >
> > > In California he also need to get a smog check for the car (and passes
> it)
> > > and has insurance before he can register.
> > >
> > >
>
>

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