CA Use Tax law
03-19-2006, 05:38 PM
#1
CA Use Tax law
I ordered an accessport from out of state not too long ago, and today as I'm figuring out my taxes, I find out about this use tax law while filling out the 540EZ form. I purposely bought out of state to avoid paying tax, but now I still have to pay local county tax on out of state purchases? 
Plus if somebody buys from out of state frequently, they'd have to keep a record of all of their purchases?
Plus if somebody buys from out of state frequently, they'd have to keep a record of all of their purchases?
03-19-2006, 06:36 PM
#4
Forester Specialist
iTrader: (3)
Join Date: Jan 2003
Location: Sonoma County
Posts: 3,985
Car Info: '98/'04 Foresters (S & XT)
Hmm...
Make sure to report EVERYTHING that you've bought from out of state sources, so that California can bend you right over and once they're finished, they'll steal your wallet too!!
03-19-2006, 06:40 PM
#5
Registered User
iTrader: (4)
Join Date: May 2005
Location: San Francisco
Posts: 461
Car Info: 2002 wrx
OG - dude, don't even worry about it.
You are far too honest, and even most honest people would just ignore it.
You paid for shipping and your waiting time, which is probably worth the same amount as tax, if not more.
You're a good guy. You can work for my company anytime (if I own one).
You are far too honest, and even most honest people would just ignore it.
You paid for shipping and your waiting time, which is probably worth the same amount as tax, if not more.
You're a good guy. You can work for my company anytime (if I own one).
03-19-2006, 07:21 PM
#7
Registered User
iTrader: (9)
Join Date: May 2005
Location: San Jose
Posts: 5,011
Car Info: 2006 evo IX
Originally Posted by TurnWRX
I used my credit card to purchase it. Won't they find out by that?
The IRS/state of california does not track every single purchase made
03-20-2006, 10:24 AM
#11
http://www.boe.ca.gov/sutax/pam71.htm
lol... dont worry dude...
i work for cal state hayward. and i used to think that buying out of state (especially like dell stuff costing like $50k of computers) would save money on tax...
but duh...
i remembered when i turned in a receipt for a work related purchase and our financial person started to whip out the calculator. i asked what for? she said to figure out the tax!
ever since, i stopped working harder to find a vendor out of state...
lol... dont worry dude...
i work for cal state hayward. and i used to think that buying out of state (especially like dell stuff costing like $50k of computers) would save money on tax...
but duh...
i remembered when i turned in a receipt for a work related purchase and our financial person started to whip out the calculator. i asked what for? she said to figure out the tax!
ever since, i stopped working harder to find a vendor out of state...
03-20-2006, 11:59 AM
#12
Registered User
iTrader: (3)
Join Date: May 2005
Location: Milpitas
Posts: 847
Car Info: 05 WRX Wagon and 08 Civic Si
they dont have time to track everyones out of state purchases
and the cost of the accessport is not significant enough for them to do anything about if they did find out.
dont worry about it.
its nice to know your such a honest guy though
and the cost of the accessport is not significant enough for them to do anything about if they did find out.
dont worry about it.
its nice to know your such a honest guy though
03-20-2006, 01:40 PM
#13
Registered User
Join Date: Sep 2004
Location: Fremont
Posts: 277
Car Info: '05 STI
In the last few years since the IRS started leveraging more technology to do more audits they increased revenue by almost 37%. This was because they audited more people in the 100k and up income bracket where as before they really only worried about people with incomes in the millions annually where they could find hundreds of thousands in hidden income or fraud.
If you don't make enough money to draw attention to your self then you'd have to be really unlucky to get caught. They're not going to audit you most likely because the man hours required to do a full review would cost way more than the missing taxes they'd find.
I did a research project on the CA Use Tax in college. It's really interesting if you're into Federal Law and Interstate Commerce. Kinda like how the CA DMV had to pay back all those people who bought cars out of state in places like Oregon to avoid our crazy state taxes. The DMV would charge you when you imported your car, which is against the consitution because it breaks the free trade between the states clauses. The Use Tax is bad like that also. It's probably unconstitutional and if anyone with a good lawyer fought it they would probably win. Think about it this way: Use Tax only currently applies to the Internet, where as Mail Order/Catalog companies don't have that stipulation..because they lobbied against it and had good lawyers. It's a croc, don't worry about it.
If you don't make enough money to draw attention to your self then you'd have to be really unlucky to get caught. They're not going to audit you most likely because the man hours required to do a full review would cost way more than the missing taxes they'd find.
I did a research project on the CA Use Tax in college. It's really interesting if you're into Federal Law and Interstate Commerce. Kinda like how the CA DMV had to pay back all those people who bought cars out of state in places like Oregon to avoid our crazy state taxes. The DMV would charge you when you imported your car, which is against the consitution because it breaks the free trade between the states clauses. The Use Tax is bad like that also. It's probably unconstitutional and if anyone with a good lawyer fought it they would probably win. Think about it this way: Use Tax only currently applies to the Internet, where as Mail Order/Catalog companies don't have that stipulation..because they lobbied against it and had good lawyers. It's a croc, don't worry about it.
03-20-2006, 02:14 PM
#14
Originally Posted by jonp
I did a research project on the CA Use Tax in college. It's really interesting if you're into Federal Law and Interstate Commerce. Kinda like how the CA DMV had to pay back all those people who bought cars out of state in places like Oregon to avoid our crazy state taxes. The DMV would charge you when you imported your car, which is against the consitution because it breaks the free trade between the states clauses. The Use Tax is bad like that also. It's probably unconstitutional and if anyone with a good lawyer fought it they would probably win. Think about it this way: Use Tax only currently applies to the Internet, where as Mail Order/Catalog companies don't have that stipulation..because they lobbied against it and had good lawyers. It's a croc, don't worry about it.
he showed me all sorts of stuff (all printed -- to avoic being tracked... lol) stuff on how to buy a car out of kalif and NOT pay sales tax.
it boils down to waiting over 90 days after you made the purchase, having it sit in oregon.
meanwhile you start filing all sorts of paperwork.
after the 90 days, you bring it in and you are good to go. pay the normal fees for bringing in a car like you are moving here...
lol.....
Thread
Thread Starter
Forum
Replies
Last Post
