Minimizing sales tax

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Scudman

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Joined
Oct 18, 2005
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6
I am looking for a legal way to avoid paying the CA sales tax on a used coach I am buying (thru a loan.).  The coach  is currently registered in Oregon.  Can I have two people on an Oregon vehicle registration; me (CA resident) and my brother (OR resisdent)? 
 

Ned

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Feb 1, 2005
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The only legal way to avoid the sales tax in CA is to keep and USE the RV out of CA for one year.  The usage is very important and you will need receipts to document this.  I'm sure some of our CA members can furnish more details.
 

Tom

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California used to allow you to legally avoid paying sales tax if you take deliver of the coach out of state and keep it out for 91 days in the first 6 months after purchase. I believe that the out-of-state duration was extended for RVs and boats to 1 year. As Ned says, you actually need to use the coach whie it's out of state, not merely store it. You also need to file form BOE-447 with the state Board Of Equalization and check with the BOE to verify the current regulations.
 

Wendy

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May 14, 2005
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Colorado
Oregon has gotten very particular about registering vehicles in their state (probably due to pressure from California). When we tried to register our motorhome there last year, using my parents address with Dad as co-owner, they told me I had to have an Oregon drivers license and could only get that if I could show 2 documents in my name with an Oregon address.

If you want to register the vehicle in California, I know there's a way to do that in California without paying sales tax by keeping them out of the state....and that means REALLY keeping them totally out of the state.

Good luck.
Wendy
 

Bob McNabb

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May 25, 2005
Posts
45
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San Diego, CA
Under the old 91+ day arrangement, we purchased our motorhome and when we appeared before the Franchise Tax folks, they liked the way that we'd kept our daily record while vacationing (100 days). We even had movie ticket stubs and restaurant receipts, as well as campground receipts. We flew to Europe from the airp[ort in PHX but stored our motorhome nearby while we took that trip.

The Tax folks had some hilarious stories of people who've tried to pull tricks....and the Tax Board folks aren't slow in recognizing the slight-of-hand. There's now no way of doing this in 91 days. It's a full year. The State of California is hungry for revenue, and so are many other states. They are working closely together to seal off any attempt to avoid taxes. Working with the CHP, they have even checked licenses in storage yards and, of course, are quick to pull over those people towing a car with a different (state) license. People who have a permanent CA address are, of course, the targets for this kind of "checkup". There's also a bad feeling among a growing number of residents when they think somebody is pulling a "fast one" to avoid taxes, so the Tax folks get quite a number of tips from neighbors who turn in such information.

If I'm sounding abrasive about this topic, it's because the heading "Sales tax avoidance" is a masterful way of using the very terminology that ligjhts the fuse with those neighbors who are likely to turn you in.
 

Tom

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Bob McNabb said:
...the heading "Sales tax avoidance" is a masterful way of using the very terminology that ligjhts the fuse with those neighbors who are likely to turn you in.

Bob, you're quite right. I'd meant to change the subject line earlier, but forgot until I read your comment. It's now changed and hopefully isn't quite as provocative.
 

BernieD

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Mar 1, 2005
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5,877
Location
Goodyear, AZ
Bob McNabb said:
If I'm sounding abrasive about this topic, it's because the heading "Sales tax avoidance" is a masterful way of using the very terminology that ligjhts the fuse with those neighbors who are likely to turn you in.

Bob

Actually it was a Supreme Court Justice who "popularized" the term tax avoidance as opposed to tax evasion. His ruling was that tax avoidance was a legitimate activity while tax evasion was illegal and was to be punished. You cannot be punished for legitimate tax avoidance.
 

Ned

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I was referring to the changing the subject of the topic.  There is nothing wrong or illegal with tax avoidance.
 

Tom

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48,921
Ned,

Feel free to change it to whatever you feel is appropriate. However, I do feel the original one could be provactive, although I'm sure it wasn't intended to be.
 

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