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Started By
Message
Buying a vehicle in Texas for tax savings
Posted on 6/9/14 at 1:46 pm
Posted on 6/9/14 at 1:46 pm
Is it possible to use a relatives address in TX to initially register the vehicle and then switch the registration to LA to save the sales tax?
8
Posted on 6/9/14 at 2:05 pm to gptigerfan
Seems like a pain in the arse to me.
Posted on 6/9/14 at 2:08 pm to Broke
It may be, but it would save around 2K
Posted on 6/9/14 at 2:08 pm to gptigerfan
Texas has a sales tax.
Posted on 6/9/14 at 2:12 pm to tigerrocket
quote:
Texas has a sales tax.
Yes - the OP may be confusing Texas' lack of a state income tax.
Posted on 6/9/14 at 2:15 pm to tigerrocket
quote:
Texas has a sales tax.
My bad. I was confused with the income tax
Posted on 6/9/14 at 2:28 pm to gptigerfan
You will have to pay a high price to switch the tags from Texas to LA as well.....
This post was edited on 6/9/14 at 2:29 pm
Posted on 6/9/14 at 2:52 pm to tigeraddict
It won't work.
Posted on 6/9/14 at 2:59 pm to gptigerfan
If you buy in Texas then transition it over, you will have to pay a certain % of the cars blue book value in taxes to LA. In the end, you will probably pay more to go through Texas, seeing as they do also have a sales tax. It is a smidge lower at 8.5% vs. LA's 9%, but its a wash once you factor in the cost to change it over.
Posted on 6/9/14 at 3:01 pm to gptigerfan
quote:
Is it possible to use a relatives address in TX to initially register the vehicle and then switch the registration to LA to save the sales tax?
Would be a pain in the arse to save the 2% difference from 6.25 to 8.25... Plus, when you do register in La, you are going to have to pay an initial tax and registration fees.
So if you saved $500 on the purchase, you will likely only make out saving a few hundred and that isn't worth the headache.
Posted on 6/10/14 at 1:01 am to gptigerfan
Lol. The dumb shite people will do to not pay LA taxes.
Posted on 6/10/14 at 1:49 am to Jcorye1
When we moved to the Peoples Republic of Maryland in 2006, when we registered our cars, we had to pay the difference between the tax we had paid out of state and Maryland's tax. It came out to a few hundred bucks.
Posted on 6/10/14 at 6:17 am to Jcorye1
This doesn't get you out of taxes, let's talk about the dumb shits at la dept of rev that harassed me for a year over income tax they wanted from 3 years I lived in Texas.
Posted on 6/10/14 at 7:41 am to yellowfin
quote:
harassed me for a year over income tax they wanted from 3 years I lived in Texas.
Government retardation at its finest right there haha
Posted on 6/10/14 at 8:30 am to gptigerfan
if you buy a car anywhere outside of LA and then register it here, you pay the difference in out of state sales tax and sales tax in your area. i think there is an exemption for active military.
Posted on 6/10/14 at 10:42 am to yellowfin
quote:
This doesn't get you out of taxes, let's talk about the dumb shits at la dept of rev that harassed me for a year over income tax they wanted from 3 years I lived in Texas.
The same thing happened to my dad, you have my sympathy
. He ended up having to get a legislature member involved :/, they wouldn't even budge when he showed adequate proof of domicile AND employee clock in/clock out records from his old company in New Hampshire for that time period. Be honest though, how is this not going over the top to avoid taxation? Plus, why would you want your money to be used in another state?
Posted on 6/10/14 at 3:39 pm to gptigerfan
I set up a Montana LLC it's cheep
Posted on 6/10/14 at 7:51 pm to Jcorye1
quote:
Posted by Jcorye1 quote: This doesn't get you out of taxes, let's talk about the dumb shits at la dept of rev that harassed me for a year over income tax they wanted from 3 years I lived in Texas. The same thing happened to my dad, you have my sympathy . He ended up having to get a legislature member involved :/, they wouldn't even budge when he showed adequate proof of domicile AND employee clock in/clock out records from his old company in New Hampshire for that time period. Be honest though, how is this not going over the top to avoid taxation? Plus, why would you want your money to be used in another state?
Because if he registers it in Texas then moves it to LA he'll have to pay the difference in sales tax when he does so no savings
Posted on 6/10/14 at 8:05 pm to yellowfin
quote:
Because if he registers it in Texas then moves it to LA he'll have to pay the difference in sales tax when he does so no savings
Oh I didn't say he was going to be successful, I'm just saying it's an over the top way to try to avoid taxes.
Posted on 6/11/14 at 12:19 am to Jcorye1
I flew to Houston in Jan '06 to buy my truck for several thousand less than all the jackasses in LA wanted ($120 plane fare), then drove it back (temporary tag and drove it for a year). Don't think I paid any Tx taxes. Dealer filled out all the paper work to register it in LA and pay LA tax. Dealers in LA can't touch prices in Houston which saves more than any tax savings (tax savings I don't think are possible).
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