Comments on: Tax B.S. from MINI and California

By: Ian C.

Ian C. — Mon, 17 Jul 2006 21:25:58 +0000

See this weblog post for a happy outcome to this issue

By: Aqualung

Aqualung — Mon, 17 Jul 2006 12:31:35 +0000

Ian, am sending you an article from todays’ WSJ…about how California went after Dave Duffield and others — now they’re in a much higher tax bracker — but thought you’d find it interesting.

“Brady Anderson, a native Californian who played center field for the Baltimore Orioles in the early 1990s, was dunned with a $322,410 California tax bill after claiming Nevada residency in 1993 and ‘94. The tax authorities “looked at where Brady was, every single day, and they subpoenaed credit-card receipts,” recalled his accountant, Joseph Geier.”

By: peter

peter — Fri, 14 Jul 2006 20:25:53 +0000

Dudes! relax already – just grab the car and drive it like you stole it! In fact, go right ahead and steal it!
Don’t forget to turn on that COP control toggle!

By: AprilWhine

AprilWhine — Fri, 14 Jul 2006 17:08:02 +0000

I intend to not use the GP while in CA, and will head directly out of state. I may have to stop and rest, maybe in Santa Barbara, overnight because I don’t want to have an accident from driving while sleepy.

That’s my answer and I’m sticking to it.

By: Ian C.

Ian C. — Fri, 14 Jul 2006 12:37:18 +0000

Logically CA shouldn’t have a claim – but they have a state law which targets “first use” of a “product”; obviously not intended to cover this sort of event but “the letter of the law” definitely seems to apply if I have my “first use” of the GP in California, and I don’t immediately leave the state.

By “the letter of the law” I’d have to pay CA first use tax (around 8%), then I could reclaim against my MA tax – but that’s only 5% so I still lose 3% to CA.

Now “the spirit of the law” no doubt says we shouldn’t have any trouble, but if some high and mighty CA official sees all the PR for this event, rubs his hands and decides to collect a few extra $$$ from the out-of-staters, we could be in trouble.

By: paul

paul — Fri, 14 Jul 2006 03:18:31 +0000

its the reverse situation, I know, but when I bought my first MINI in AZ and registered it in CA, I actually got a refund (of a $!) because the taxes in AZ turned out to be higher than CA. So maybe if you end up paying CA taxes you will get some of it back. Anyone gone to their local DMV to ask?

But as Gavin says, aren’t you buying your vehicle from the local dealer, just that delivery is in CA. Even though I am sure they will if they can, I don’t see that CA has any claim. But IANATA

By: Gavin

Gavin — Fri, 14 Jul 2006 02:11:57 +0000

I’ll try and find the paperwork from my MCS purchase (I bought it in Long Island) but I’m sure I went down there with MA plates. As Theo said, MA won’t issue temp plates, and I think I remember that if I’d taken temp plates from the dealer, then I’d have been charged tax there. As it was, I had to pay tax to MA, which I would have had to do to get plates anyway. I do remember they had to put an inspection sticker on it (and charge me) and then I had to get a MA one two days later (and pay again).
I would think that if you’re on MA plates with a MA bill of sale from a MA dealer, there’s no way CA can get you for tax. I don’t see how they’d collect it, unless they set up a road block at the gate after delivery..!
I agree though, that this could have been disclosed a lot earlier on, but they had trouble getting people to sign up anyway – I’m sure this would have killed the Monterrey delivery for all but CA owners.

By: Jeff

Jeff — Thu, 13 Jul 2006 18:59:30 +0000

My MA(motoring advisor) is getting together all that will be necessary for me to go to CA from WA with my actual plates and registration. In fact, since you cannot get vanity plates here until the car has real plates, he is going to do it soon enough to get them too. WA just started making the vanity plates on a printer in downtown Seattle so you can get them on very short turn around.

As far as it goes, I have driven to other states many times to pick up cars I have purchased. I have even been pulled over by those states’ cops with expired tabs on them and once I showed my Bill of Sale and Title was waved on without even a ticket for expired tabs because they all realize the silliness of registering the car in a state where I don’t live.

The tax laws we are worrying are for states that are adjacent to “tax free” states where a dodge would be feasible. For Example, CA and WA have high sales taxes and OR has none so it is not uncommon for CA folks to register the vehicle to a PO Box in OR to save thousands on Motor Homes, Boats, Planes and cars.

As to vanity plates… is it too corny to get
ITALJOB since it was built by Bertone?

By: Aqualung

Aqualung — Thu, 13 Jul 2006 15:52:12 +0000

Ian, I also remembered an incident that happened a few years back to a friend. He had lived in New Hampster for several years, got married, they continued to live there for a couple of years after and then moved to Taxachusetts. The Mass DOR came after him for sales taxes, accusing him of living in NH to avoid them. Huh?

He ended up paying ~$600 as it was the far cheaper option of hiring a lawyer and fighting…which I imagine they count on.

Moral is that I’m sure you’ll get far greater scrutiny here than in CA…

Chris

By: Ian C.

Ian C. — Thu, 13 Jul 2006 12:39:37 +0000

Theo,
We are required by MINI USA to provide completes sales paperwork and copies of the plates to them prior to the Monterey event – this presumes that they supply to “CO” early enough to complete all the MA paperwork …