Question regarding vehicle registration in CA

Hello everyone,

I don't know if this is the right place to post this...

I have a question regarding registering my car in CA. I bought my 2005 330i while in South Carolina and in the military. I just finished my enlistment and returned to my hometown in California a few days ago. I checked the DMV website and it says that anyone becoming a resident in CA has to register their car within 20 days, or face fines. In addition, because sales taxes are based on the 10% of value of the car, so I would I owe $4000!

My question is, do I have to pay this tax AGAIN if I already paid it in South Carolina and while I was on active duty military duty? Their website really doesn't elaborate much on discharged military personnel returning to the home state. I wonder what the policy of other states are... I would rather move to another state than to pay $4000 in taxes AGAIN. I saved a portion of my military pay for 5 years to afford my 330i, so $4000 is a big deal to me, especially since I am discharged and don't have steady income. My savings are enough to last me until I find a new job, but it I only have less than 2 weeks to pay $4000 then this will cause me great hardship. To me this car is a reward for myself for all the difficult times I had to endure while in the service, and driving it helps me keep my sanity. CA must think the military pays us a lot of money... Any help is greatly appreciated.

Thanks for any help!

Reply » Question regarding vehicle registration in CA

I wouldn't expect CA to treat military personnel any different than civilians. If it does, I'd expect it to be easier on the military.
That said, it usually works like this (I don't know the specifics about CA; it's a weird state when it comes to car taxes; a governor was recalled partially because of that, I believe). When you bought your car in SC, either you paid full local taxes (if you registered it in SC) or not. If you didn't, well, you own $4K taxes in CA. Comes with owning a $40K car. If you paid and moved to CA within a certain number of days (varies by state), you can show proof and pay only the difference (subtract what you already paid in SC). After that number of days, it'd be like any one who moves into CA with an existing car. You owe whatever tax rate they charge for registering a used car in CA. If that's the $4K, then... maybe governator should be recalled as well.

Reply » Question regarding vehicle registration in CA

If your car has <7500 miles on it, it will be taxed as a new car.
If it has >7500 miles on it, it will be taxed as a used car.
I don't know the registration fees nor if DMV cuts returning military a deal.

Reply » Question regarding vehicle registration in CA

Isn't there a 90 day issue as well? I think you want to keep the car out of state for the first 90 days if you can. As for the mileage issue, I wasn't aware of that but if that is accurate, drive, drive, drive.

Reply » Question regarding vehicle registration in CA

I did some research and according to the CA DMV website, I am not really paying a sales tax, but what they call a "use" tax. Sounds like another way of robbing honest citizens with the law. I sure as hell won't pay a total of $8000 in taxes (SC and CA). This is from the CA DMV website:

"Use Tax This tax is similar to sales tax. It is collected at the same rate as your county of residence. It is due on all vehicles purchased in California and on those brought into this state. Existing law imposes a use tax on a vehicle purchased outside of California and brought into California within 90 days of purchase. New legislation effective October 1, 2004 through July 1, 2006 requires payment of use tax on a vehicle purchased outside California and brought into California within 365 days of the purchase date. Any sales taxes paid out-of-state will be considered when computing the use tax due this state. This fee is due for ownership transfer of recently purchased vehicles."

Looks like I will have to leave my car in another state for a few months until it hits 366 days to avoid this tax. Thanks for all the help!

Reply » Question regarding vehicle registration in CA

Quote:

Looks like I will have to leave my car in another state for a few months until it hits 366 days to avoid this tax. Thanks for all the help!

Something you may want to check and see if the tax is going to be affected by the day you establish residency in CA, ie. getting a CA driver's license, getting a job in CA, etc.

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