Trevor
In California there are some transactions that are tax exempt. Intra family
transfers are exempt (father/son/daughter etc.) Others are taxed.
California is pretty militant about collecting sales taxes. Ever since prop
13 put our property tax down the state has gotten big on other taxes. If
they can figure a way to get it they will. If you are buying a car in this
state it would be hard to argue that the transaction did not take place in
California. (Out of state transactions is one other good dodge for avoiding
sales tax.)
If you are buying from a private party when you go to transfer title, as the
seller did not collect sales tax the DMV will, only now it is refered to as
"Use tax" same percentage.
Please note that this is sales tax I am refering to not the registration fee.
If you are exporting the car as you would not register the car in
California. (not a lot of money on an LBC, but a new car = $$$)
The only other big loop hole that I can think of is items bought for resale
are tax exempt. However to do this would require a resale permit from the
franchise tax board, who would probably want a bond.
Also be aware that sales tax rates vary by county here in California ask what
the rate is where you are buying the car.
Hope this helps,
Rick Ewald
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