Sales Tax Q

MLD · 02-05-2017, 03:34 PM

Hey Folks,
I'm a newbie on the forum (been lurking a while) and will be ordering a SMB 4x4 Sprinter this spring.

I just realized that sales tax might apply and affect the cost on the order of 7250.00 buckaroos. I live in Oregon, and we don't have a sales tax, so I'm slow to remember the obvious.

I did a little research, and it looks like California is an origin tax state, so destination of the vehicle might not make a difference.

Anyone have an experience wherein their destination was the basis for the sales tax? Texas has a lower sales tax than California, but just a percent (aka a thousand and some change), but do Texas and California handle the taxes differently? I've also heard that Austin is a little faster in their order/production/delivery schedule, but I suppose that could change any given month, so if the taxes are different it might sway my choice of shop.

Interested in thoughts on this.
ML

**BroncoHauler** · 02-05-2017, 05:07 PM

As I understand it, if you take delivery outside of CA (have it delivered over the state line), you won't be subject to CA sales tax. I believe SMBw is well versed in this and they should be able to provide a definitive answer.

herb

pugslyyy · 02-05-2017, 07:02 PM

The term for what you want is FOB Destination, meaning that ownership doesn't transfer until the goods are delivered to you. (The opposite being FOB Origin) If you pick it up from SMB you pay tax there. If you have it delivered to your house, you pay tax based on your home location.

There are some rules to be aware of that have been put in place to stop people from circumventing the law, but since you are a legitimate out of state resident it shouldn't come in to play for you.

Statement of Delivery Outside California

Scalf77 · 02-05-2017, 09:29 PM

I picked mine up in 2004, and while I went to SMB to go through the checkout, I could not drive it out of facility. Sportsmobile had a driver drive it to Medford OR. (I was a passenger) where went into a and had the finally paperwork notarized, and he handed over the keys to me. I then had to drop him of at the airport. Kind of a bitch watching someone else drive your rig from Fresno to Medford. But, worth not paying the sales tax.

-greg

GrumpyBadger · 02-06-2017, 06:11 PM

They drove my van to Vegas and I took possession there and drove it home (I think my extra cost was $500-600 or so - still way better than CA taxes on $110K). My guess is SMBW would either drive it to Oregon for you, or you could fly to Reno or Vegas and take delivery there.