Buying a new truck need some clarification

Discussion in 'Ask An Owner Operator' started by SteveScott, Aug 29, 2018.

  1. SteveScott

    SteveScott Road Train Member

    4,897
    16,807
    Nov 10, 2015
    0
    So I'm based out of California, buying a new truck and trailer in Arizona, and taking delivery of it in Nevada. The dealer has a yard in Vegas which is where I'll be picking up the new rig and trailer.

    My confusion is with California sales tax. Of course when we buy new equipment we have to pay federal excise tax (FET) of 12%, which I also understand they may be doing away with in the coming year (that figures). The dealer isn't being very clear how the state taxes work. Is what I pay for California sales taxes somehow tied in with IRP or not? My sales taxes will be based on the miles I travel in each state, and if 50% or more of annual mileage is traveled in California for the next year I get a big tax bill from California at the end of the year? Sales taxes in California are around 13% which really sucks.

    Input is appreciated.
     
  2. Truckers Report Jobs

    Trucking Jobs in 30 seconds

    Every month 400 people find a job with the help of TruckersReport.

  3. Ridgeline

    Ridgeline Road Train Member

    22,469
    117,815
    Dec 18, 2011
    Michigan
    0
    IRP/IFTA are separate from sales tax you pay on the truck.
     
  4. SteveScott

    SteveScott Road Train Member

    4,897
    16,807
    Nov 10, 2015
    0
    Finally found what I was looking for.
     
  5. Rideandrepair

    Rideandrepair Road Train Member

    17,357
    56,318
    Aug 8, 2015
    0
    I’ve bought a few vehicles out of state. Always had to pay sales tax when transferring title.Dealers might have you sign a waiver agreeing your responsible for tax. I don’t know about California but Mi Oh In and maybe Ill. do not charge sales tax on Trucks or truck parts as long as you fill out an exemption form kept on file at Dealership.I would ask other O/O in California. My guess is they want sales tax upon transferring title.Maybe they’re are exempt in which you don’t want to pay AZ sales tax and let the dealer the cash.
     
  • Truckers Report Jobs

    Trucking Jobs in 30 seconds

    Every month 400 people find a job with the help of TruckersReport.