avoiding sales tax

Discussion in 'Ask An Owner Operator' started by MT Pockets, Jan 31, 2010.

  1. MT Pockets

    MT Pockets Light Load Member

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    Dec 31, 2009
    Manteca Ca
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    I am in the process of buying a truck. Cali sales tax is going to eat me alive! Now to avoid that, I can take delivery of truck out of state, but what are the pros and cons on that? Suggestios greatley appreciated!
     
    Last edited: Jan 31, 2010
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  3. walleye

    walleye Road Train Member

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    Land of Cheese
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    Move out of the communist state,.....
     
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  4. Native Dancer

    Native Dancer Heavy Load Member

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    Dec 28, 2007
    Portland, Or.
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    I have several friends that have done that. There are no disadvantages that I know of. There are a lot of people doing it, that is why so many new trucks are bob tailing to Reno and Las Vegas.
     
  5. Baack

    Baack Road Train Member

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    Wisconsin
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    In Wisconsin it doesn't matter where you buy it
    If in state you have to pay the sales tax on the spot
    Out of state you have claim it at the end of year on your state income tax form and pay it
    I think its called use tax
    I assume all states follow the same protocol
    Most people dont know it but your required by law to pay sales tax even on things you buy on ebay, but because its small the state doesn't normally track you down because of not paying sales tax on a pair of sneakers
    But a truck is a different and bigger situation
     
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  6. Allow Me.

    Allow Me. Trucker Forum STAFF Staff Member

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    Rancho Mirage, Ca.
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    Remember, all states have their own way of doing it. Yes, you can get out of state delivery and avoid Ca. sales tax, but, will probably have to pay it in the state you take delivery in. In Az., for instance, when we buy a used vehicle from a private party, there is no sales tax. Un-believable, since I moved here from Ca. where we had to pay a"use" tax at DMV when we registered a used vehicle. Don't forget the delivery charge for someone to deliver it to the state line. I just bought a motorcycle (used) from Ca. and registered it here in Az. I did not have to pay any tax, just registration fees. And Az. issues all paperwork, such as title, reg, drivers license on the spot. They do not mail anything.
     
  7. stepnfetchit

    stepnfetchit Medium Load Member

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    Monett MO
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    When I bought my truck I took a copy of my lease agreement to the license office and paid no sales tax. Missouri gets you on the personal property tax at the end of the year.
     
  8. Old Man

    Old Man Road Train Member

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    Oklahoma City, OK
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    Oklahoma has 0 tax. New $60,000 trailer, $58.00 for tag and title. New truck is less Plus the cost of protated tag. Swift, Jb and others title their trucks in Ok, but you need a real office in OK.
    You should more then recover the cost with all that high dollar west coast freight:)
     
  9. Gears

    Gears Trucker Forum STAFF - Gone, But Not Forgotten.

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    I paid no sales tax in Iowa for truck or trailer.
     
  10. HEAVY DUDE

    HEAVY DUDE Road Train Member

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    NUNYA
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    I have bought tks and trls in IA,AR,OK,MT,WA. Paid sales tax on none.
     
  11. Roadmedic

    Roadmedic Road Train Member

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    Usually when used with ICC there will be no sales tax.
     
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