I read the first couple of pages then moved to the end. So if these points have been covered already, sorry. I just bought a new fiver out of state last year. I was, more or less, told the same thing by my dealer--that is--that I did not owe any taxes where I bought it since I would be licensing it in Illinois, as far as they were concerned that was my problem. The next issue is the registration--I can't vouch for every state--but I can't image how they got the thing registered and licensed without paying a tax--somewhere! I transferred my plates from my old trailer to the new (physically, not "legally")at the dealers. I could not legally transfer those plates, nor register the trailer until I paid the tax. Now I can't image any state is going to allow a person to register a new unit without paying a tax. I suspect there may be a little chicanery here but not necessarily involving the dealer. I suspect the dealer sold a unit, agreed to deliver wherever the customer wanted, and then washed his hands of the whole deal (at least as far as taxes, registration, etc. was concerned). My last question is, does anyone really believe they can buy something like an RV and not pay a sales tax (or whatever your state may call it)? I doubt it.
Did you ever go to the California Board of Equalization and fill out a Vehicle/Vessel Use Tax Clearance (BOE-106?) form? This is the document that they need to approve so that you can go to DMV and claim your sales tax exemption based on the out of state delivery and you meeting the requirements of the coach being used outside the state of California for a specified amount of time. If you did not accomplish this step, that may be part of the problem. This document, when approved by the California BOE, absolutely exempts you from paying tax on the coach. You could then show that you have the state's approval on your tax exempt status.
There is also some very good information regarding this in the infamous Publication 52 found on the same Board of Equalization website. The very first page of this publication gives very specific dates and requirements for this exemption.
The 91 day timeframe is actually derived from the state saying that within the first 180 days of ownership, you have to demonstrate that you USED the vehicle outside the state of California for more than 50% of that time to qualify for the exemption....hence the 91 day timeframe. Most would go for the first 91 days just to get it out of the way, but the law actually gives you a little more leeway.
The time frames of out of state usage have been changed recently and then revised back to the original, so you have to check your date of purchase against this publication to see what applies to you. Notice that is says used outside the state....so just parking it somewhere without actually being able to provide fuel receipts, food receipts and park receipts showing that you USED it will usually end up in their denying your request for the exemption.
It has been a long standing practice for California residents to take possession of motor homes and other expensive items in Nevada.. like yachts, expensive cars, airplanes, etc...
Is it legal... YES and NO...
Here is the way it was explained to me by my CPA/book keeper..
The reason Californians take possession in Nevada is to avoid the extremely high Sales tax that California places on those items..
The Nevada sales tax on those items is about half or less than in California... thus the California residents save a lot of money ... we are talking about several thousands of dollars in sales taxes.... BUT .....
BUT..... that sales tax must be paid somewhere ... either in Nevada or California.. there is no such thing as getting away "Tax Free"..
California law says that if the new RV is bought in another state and that state's sales taxes were paid, all the California resident has to do is remain out of California for a certain number of days with the new RV and there will not be any California sales tax levied on the vehicle upon it's return to California..
I'm not sure of the number of days required ... but after the end of that period, the California resident may come home and avoid paying California sales tax...
See Boomer's post about the tax emption form
But then ... California "Property" taxes will eventually sock it to the RV owner..
I remember that a few years back, there was something in the news about the California legislature trying to close that tax loophole. But don't know if it was ever passed or not..
John
John Harrelson
Carson City, Nevada
fulltime since 1977
93 Ford 350 4wd Diesel
95 Prowler 30.5 ft 5th wheel w/slide
TWO CENTS WORTH
The story goes that a man died and was approached by the Devil who told him that he could buy his soul back for a dollar. The man searched his pockets and could only come up with 98 cent. While begging the Devil to forget the two cent he was short, an Angel happened by and hearing the Devil laughing, asked the man, "Would you mind if I put in my two cents ?" The Devil got so mad that he exploded in a puff of smoke and the man's soul was saved. The moral: Sometimes putting in your two cents worth makes a difference.
JOHN "the cook" 1997
BUT..... that sales tax must be paid somewhere ... either in Nevada or California.. there is no such thing as getting away "Tax Free"..
California law says that if the new RV is bought in another state and that state's sales taxes were paid, all the California resident has to do is remain out of California for a certain number of days with the new RV and there will not be any California sales tax levied on the vehicle upon it's return to California..
John
True to a certain extent, but does not apply in this case. The person involved lives in California and purchased the coach in California and registered the vehicle in California. He only took delivery outside the state to not pay sales tax at the time of sale. He is liable for the tax eventually....unless he legally obtains an exemption. Tax exempt is different than tax free. Tax free is the obligation of the seller. Tax exempt is on the purchaser. Like Native Americans are tax exempt as long as they take delivery on their reservation.
This has been available to California residents for over 12 years that I know about. The state is absolutely aware of it. They have made many modifications to how it works to bring it to it's present wording. You would have to believe that if they wanted to, they would shut it down.
Not a loophole in my opinion, but an opportunity to those that can and will primarily use their rv's on the road. Keep in mind how difficult it would be for the average person to buy an rv.....take out of state delivery and then have to use it for the next 91 days outside the state!!! I don't know about everyone else, but I work for a living and in no way have the ability to tell my employer that I need 91 days off to get my rv tax exempt! We are talking a relatively small percentage here and most are people that do use their coaches outside the state for extended periods of time.
Sent the papers needed to California showing we were traveling. They sent us a letter stating we did not owe California tax. We needed to keep our records for four years for the state of California. We purchased our coach in 2003. We received the letter from Nevada in 2008 regarding their "use tax". Nevada says that since we took "delivery" and even though we did not live or stay in Nevada, we owe Nevada a "use tax" for taking delivery of our coach in Nevada.
There was this guy from Minnesota. Born and raised there. Never lived or worked anywhere else except for when he was in the Army and defended our country. Bought an rv in Arizona and took an out of state delivery so he could pay his taxes and fees in Minnesota. Perfectly legal in every respect. Arizona did an audit of his paperwork and found a contact phone number for him that had a (480) prefix which is an Arizona area code. It was a prepaid phone he got for 3 months so he could have a local number for his buddies to contact him about good happy hours or tee times. Based on this number, and only this number, Arizona said that he owed sales tax in Arizona because the phone proved Arizona residency!! Phone calls didn't help. He had to show a years worth of utility bills, two years of Minnesota state tax returns and proof of home ownership in Minnesota to finally get Arizona agree that he did not owe the tax.
True story.....
If you can not get a supervisor or senior collections office in the state of Nevada to agree with you and release this claim by phone conversation only (I have seen it done before), I am sure that saying "I had the paperwork, but not anymore" is probably not going to satisfy them. You will have to get proof of your tax exempt status from California to have any chance of getting this resolved. Of course, you may want to verify with Nevada that if you jump through all the appropriate hoops to get this, that they will accept it and leave you alone. Once again, I think you have an over zealous or very green field collector on this one and they just need a solid reason not to pursue you over it.
About four or five years ago my old boss who lives in CA took possession of his new motor home out at the Boomtown Truck Stop, located just across the Nevada border.
This took place in December, heavy snow on ground, mountains passes closed and he had to stay overnight in Nevada RV park.. and he made sure that he got a receipt from the RV park.
The next day after the passes had been re-opened, he drove the motor home back to his home in CA. Because it was winter and he could not use the RV, it was parked on his property until the following May.
Don't remember all the details, but I remember he told me that he was saving several thousands of dollars in sales taxes..
I remembered being shocked at the huge amount of tax involved... never having bought anything that expensive in my life, I guess my mind was thinking "Hundreds" and California was saying "Thousands" ..
Like some of the other members, I read the 1st hundred or so entries then skipped to the end, so this may have been brought up already.
I believe you said you traded in a 2002 MH on a 2003 MH and that you paid $14K in sales tax on the 2002. In my state, PA, and in NJ where I spent the first 40 or so years of my life, you only pay sales tax on the difference between the trade-in allowance and the price paid for the new vehicle. If CA and/or NV tax laws are similar, you may not owe as much as you think.
I would be curious to find out how NV even found out about your situation, except possibly from the dealer. NV might not even know the financial particulars of the deal you made in CA and have assumed that you paid full price for your MH. Is the cost of the MH that they are saying you owe taxes on the final price you negotiated with the dealer? How did NV get your name and address?
Perhaps, since the dealer wrote N/A in the Tax space, you might have construed that as meaning he was including the taxes in his price. Now NV has caught up with him since he failed to forward those taxes he collected to the state and he has sold you out to save his own butt. Just a thought.
Please DO NOT construe any of this post as legal advice since I am fully UNQUALIFIED to give any.
What if the vehicle was registered in a state that does not have a sales tax?
Alaska, Delaware, Montana, New Hampshire, and Oregon have no state sales tax. Purchased from a dealer in CA, delivered in NV, legally registered in one of these states.
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