[CA only]Sales tax and VLF expected to drop 1.5% on 7/1/11

[richard]

..
My dealer did the same thing. Mine came in this Tuesday and I told him that I wanted to hold off on picking up until July 1 and he refused. He said that if I did that, they would sell the car to someone else. He pretty much gave me the weekend to pick up or I would lose it.

That's the second time I've heard a dealer do this recently. I have the same question as greenleaf. Aren't these cars assigned to the reservation holder, until that person rejects it. How much time does an owner get before it gets sold out from under him?

 

[greenleaf]

The problem here is the cat is out of the bag . . . I do not think there is any cost to the dealer in the first 30 days a car sits on their lot. That's how flooring works. But dealers do like to sell cars this month, not next month. That's why the last day of the month is a great day to buy a car. So, you are up against (a) having told the dealer you could take the car this month (you just don't want to) and (b) the dealer's desire to move the car in June.

Yes you are right.

I have forgotten about the "buying at the end of the month" effect. Especially the end of June is the first half of the year.

We are talking about waiting for one week now. And if there is no cost to the dealership in the first 30 days, a good dealer would probably oblige.

Perhaps this is when the good dealers would stand out against the others, especially those who threaten to sell your Leaf to another person.

 

[davewill]

That's the second time I've heard a dealer do this recently. I have the same question as greenleaf. Aren't these cars assigned to the reservation holder, until that person rejects it. How much time does an owner get before it gets sold out from under him?

Car salesmen are good at saying whatever they have to say to get a car sold. Truth is usually not a big concern. I suspect that if he simply dragged his feet until July 1, the car would be held. To do otherwise probably would cause problems with Nissan. The question is whether he wants to chance it.

 

[mxp]

Hi,

Does anyone have the latest info on this topic? I spoke to some trades people today and they mentioned that the CA state WILL pass the legislation to continue the sales tax and EVEN can backdate the legislation to July 1 even if they signed it July 30.

So, the MAIN question is this: Is it still worthwhile to wait until July 1?? I mean why would the car dealer believe the consumer folks who claim this sales tax story anyways?

Thanks in advance...

 

[greenleaf]

Hi,

Does anyone have the latest info on this topic? I spoke to some trades people today and they mentioned that the CA state WILL pass the legislation to continue the sales tax and EVEN can backdate the legislation to July 1 even if they signed it July 30.

So, the MAIN question is this: Is it still worthwhile to wait until July 1?? I mean why would the car dealer believe the consumer folks who claim this sales tax story anyways?

Thanks in advance...

I followed the CA budget issue quite a bit. It's complicated and the scenario you mentioned certainly is possible.

But my take is that at this point, the sales tax and VLF should drop on 7/1/11.

As for car dealers, their aim is to get you to close as soon as possible. So, I am not surprised by what they had told you.

 

[trevelan]

Does anyone have confirmation that the new rates will actually take effect.


I located these docs, but no other documentation that the state sales tax nor the VLF will take actually effect on 7-1

http://www.boe.ca.gov/sutax/pdf/Pending_Rates-07-11.pdf

http://www.dmv.ca.gov/faq/faq_vlf.htm
Q How long does the increase last?
A The increase will be through June 30, 2011, but may be extended to
June 30, 2013.

I also heard that CA can retroactively collect the taxes at the higher rate even if you bought and registered on/after 7/1.

 

[greenleaf]

http://latimesblogs.latimes.com/california-politics/2011/06/jerry-browns-office-calls-republicans-basically-moronic.html

Brown wants a fall election on taxes and to extend vehicle and sales tax hikes that will otherwise expire by Friday.

Without extension, these go back down on 7/1. I guess DMV is "prohibited" from communicating this fact (for the same reason they have not been sending out the renewal forms).

 

[CASF]

AND it will drop on 07/01/2011
"Brown indicated that he will still try to put tax increases on the ballot, but not until in 2012."

 

[greenleaf]

Looks like Dems and Brown has agreed on budget. There will be a 1.5% drop in tax but a $12 increase in registration fee per year.

Car owners, for example, would pay $12 more per year to register their vehicles. Residents of wildfire-prone zones would pay a new fee for state firefighting efforts. Other revenue would come from forcing online retailers such as Amazon.com to collect sales tax on purchases by California residents.

http://www.latimes.com/news/local/la-me-state-budget-20110628,0,1553443,full.story

 

[greenleaf]

The sales tax is confirmed to drop by 1% and VLF to drop by 0.5% tomorrow.
But there is a $12 increase in registration fee.

On a related note, Amazon has cut ties with CA affiliates and said that it will NOT collect sales tax tomorrow.

http://www.reuters.com/article/2011/06/30/amazon-idUSN1E75T1OC20110630

What can Brown do for you?

 

[davewill]

The sales tax is confirmed to drop by 1% and VLF to drop by 0.5% tomorrow.
But there is a $12 increase in registration fee.

On a related note, Amazon has cut ties with CA affiliates and said that it will NOT collect sales tax tomorrow.

http://www.reuters.com/article/2011/06/30/amazon-idUSN1E75T1OC20110630

What can Brown do for you?

Keep up the fight. There's no reason for Amazon and others to continue to evade sales taxes. It gives them a completely unfair advantage (that they hardly need) over normal businesses. And starves a state budget that can't afford it.

 

[CASF]

The sales tax is confirmed to drop by 1% and VLF to drop by 0.5% tomorrow.
But there is a $12 increase in registration fee.

On a related note, Amazon has cut ties with CA affiliates and said that it will NOT collect sales tax tomorrow.

http://www.reuters.com/article/2011/06/30/amazon-idUSN1E75T1OC20110630

What can Brown do for you?

Keep up the fight. There's no reason for Amazon and others to continue to evade sales taxes. It gives them a completely unfair advantage (that they hardly need) over normal businesses. And starves a state budget that can't afford it.

Amazon has no presence in the state so no business in tracking your purchases. State budget is more your responsibility - have no doubts you are paying Use tax.
_
The California use tax is generally the liability of the purchaser and must be paid either directly to the seller from whom the physical merchandise was purchased or directly to the Board of Equalization (BOE) if the retailer is not required to collect and report California tax.
__________

 

[davewill]

Amazon has no presence in the state so no business in tracking your purchases...

Complete fiction. Divestment just points up the fact that they've been flouting the law, nor do I believe they truly have no presence here....and it hastens the day the law will change to require collection if you sell here, period.

 

[CASF]

Amazon has no presence in the state so no business in tracking your purchases...

Complete fiction. Divestment just points up the fact that they've been flouting the law, nor do I believe they truly have no presence here....and it hastens the day the law will change to require collection if you sell here, period.

Sorry - don’t think this is topic to discuss online retailers or someone believes. The fact is - Sales tax has being returned to previous level. It will save me some money

 

[mxp]

Many thanks for the tip on the sales tax. We picked up our cars July 1 and the sales tax drop savings were real and reflected on our invoices.