thats not the end of either
On the list for new or increased taxes is a return to the original formula for determining your license free for any vehicle in California. The original formula was a license fee of 2% of the value of whatever you drove. It was that way for years-just like Nevada and I'm sure its that way in many states. At the start if the 3rd year the plate started to depreciate with the vehicles value. Some years ago when Gray Davis was governator they had a surplus. There were many proposals of how to give the surplus back to the residents. The one that stuck was lowering the plate basis to about .65% and thats where it is today.
When the state again went into the red during Davis' term there was a clause in the law that returned the fee to the standard 2%. By that time half the state was buying expensive SUV's and the increase really stunned a lot of people. That was a rallying cry during Davis' recall then Arnolds election. Literally the same day he was sworn in his first act was to return the license fee to the .65% of value. I'm pretty certain before the year is out they'll be back to the 2% rule. Doesn't sound like much but if your paying 1,000.00 now that will be 3,000.00 soon.
The most current proposal passed but vetoed by the Governator also made almost everything taxable-even labor. You visit your accountant he taxes your invoice. Now thats a low blow. I bought a subway sandwich the other day and found out if they toast it its taxable-if they don't its not taxable. When will it ever end.
Any motor vehicle and boatz 2
Quote:
Originally Posted by
bluevost
Hey (Calif) POGgers,
Beginning Jan 1, 2009 any motorhome/bus purchased outside of California will have to wait 12 months before entering the state in order to avoid paying State Use Tax (which is equal to sales tax I think). This according to the Auto Club magazine just received by yours truely. And you better have some good documentation of where the bus lived for those 12 months too.
Ken,
There's are a few little zingers lurking in that statute as well; its been snugged up a bit since the last rendition thanks to the FTB. The primary purpose of the vehicle must be for use outside of the State of California, for those who were residents at the time of purchase, and one must maintain a fairly decent paper trail.....fuel receipts, meals, groceries and best of all....a reason! That's right, the FTB wants to know why you were keeping something out of state. Sticking a motorhome into an RV Park to save use tax is not a good answer! The Franchise Tax Board will tax the vehicle at the prevailing rate (by county/city) then add a nice little laundry list of penalty's which, after a year, will be another 100% if they suspect the above, which they will! I have been told that their latest trick is to advise the state where the vehicle is or was kep't....that's no bueno either, wherein they will also collect a "finders fee". Oregon, with no sales tax, will seek to recover state income taxes. I really think this loophole has been closed.
John
