Originally Posted by Ray Davis
Ray,
First of all, that looks like a very nice coach..................................
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The California State Board of Equilization makes the IRS look like wimps, their secret is to hire as many ESL (English Second Language) people as possible. I swear they must be paid on commission and, if that is true, they all make handsome salaries.
True, if a motor vehicle is 91 days or older when it FIRST enters the State of California, then it MAY be exempt from Use (Sales) Tax. For years the law read 91 days then a few years back it was changed to 1 year however somehow that law did not last and it is now back at 91 days. There are pages of verbage that go along with that 91 days that people tend to overlook. First and foremost, the State Board will do all in their power to allow you to indicate that the INTENT was to avoid payment of California Use Tax; if they have one iota of evidence then you get the tax bill and a huge penalty. Certainly it can be appealed but the results are generally fruitless unless you elect to go to court, and even then it may be very difficult, not to mention costly. Truth is, if you delay bringing the vehicle into California and show up at the DMV on the 92nd day, you are done. That will immediately trigger a not so pleasant response from the Board even though the DMV will be happy to take your money for the plates. What you have to be able to show, proof positive, that your intent was to purchase the vehicle for use outside of the State of California, you opened a new business, you were going to sell Fuller Brush, no matter. At the end of the day I would wait at least one year before even thinking about bringing the coach back into SoCal. I really do speak from experience! I had to buy property in Oregon to keep my fat out of the fire!
So here's the deal. The Tax man knows exactly what most people are trying to do, avoid California Tax....I mean they probably do 15 or more of these per day. You will be thrown right into that same pot and even though, you may be as pure as rain, you are in for a ride. They will want statements of facts, invoices, fuel slips, repair bills, mileages, and most of all a very good reason why you kep't the coach out of the state.......if you are not prepared to do that, or do not have a game plan, then just pay the tax and avoid the hassle and penalties.
There are other choices out there but they all have their drawbacks as well, ask Sid about the Montana LLC and California.
My only suggestion, one that I have used and certainly does work, is to buy, rent or whatever a place in Arizona and then, get who ever you are buying the coach from to show it as a private transfer. Arizona has NO SALES tax on what is defined a casual sales between individuals. They do, however, have a hefty Use Tax when it comes from a dealer.
All the best....
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