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04-10-2017, 03:14 PM | #1 | |
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Join Date: Apr 2017
Location: Los Angeles, California
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How to buy car in Oregon and avoid sales tax in California?
I've lived in CA for 5 years but my family is still in Oregon. How about if my father purchases a vehicle in Oregon then "gifts" it to me (there's a checkbox for this when transferring a vehicle) or sells it to me at a low price? Will this enable me to successfully avoid the CA sales tax?
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04-18-2017, 10:10 PM | #2 | |
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Join Date: Apr 2017
Location: Union City, California
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Re: How to buy car in Oregon and avoid sales tax in California?
You will want to use reg256 (statement of facts) form. It exempts you from use tax so long as a vehicle transfer of ownership is gifted between family members. The only exception is if the family member makes a living from selling cars.
Request the reg256 form to fill out & turn in with your application of transfer of ownership. I'm pretty sure that you don't want to select the option that you bought the car at a low price - you'll have to pay tax on the amount you "paid" to your father. You can find more information at dmv.ca.gov Good Luck |
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