Watch sales tax--might be the biggest swing factor in some states
11-11-2006, 09:59 AM
#1
AudiWorld Super User
Thread Starter
Watch sales tax--might be the biggest swing factor in some states
When I bought in 1985 on European delivery, the discount was 11%, but you had to pay the 2.8% duty on the depreciated value of the car.
The biggest savings though was really the sales tax. Back then in California if the car was out of the US for 90 days or more from the delivery date in Europe, there was no sales tax. Since it is on the ship for 45 days or so, it wasn't too hard to get to 90 days. I understood some people paid dealers near the drop off points just to hold the car long enough to get over 90 days. It may be if it just sat at the port outside of customs it would still work. In my case, it was used in Europe long enough by relatives who then dropped it off that it worked out, and no sales tax was owing.
I believe though CA now has a one year from first use rule instead of just a ninety day rule for sales tax. Other states may vary though.
Definitely worth looking into, particularly since now the savings are only 5%. Sales tax makes a bigger swing than that normally.
The biggest savings though was really the sales tax. Back then in California if the car was out of the US for 90 days or more from the delivery date in Europe, there was no sales tax. Since it is on the ship for 45 days or so, it wasn't too hard to get to 90 days. I understood some people paid dealers near the drop off points just to hold the car long enough to get over 90 days. It may be if it just sat at the port outside of customs it would still work. In my case, it was used in Europe long enough by relatives who then dropped it off that it worked out, and no sales tax was owing.
I believe though CA now has a one year from first use rule instead of just a ninety day rule for sales tax. Other states may vary though.
Definitely worth looking into, particularly since now the savings are only 5%. Sales tax makes a bigger swing than that normally.
11-12-2006, 08:50 PM
#2
Re: Watch sales tax--might be the biggest swing factor in some states
Here in WA state the sales tax will be added onto the price of the car before we leave to take delivery of the car. I thought I read where all AED (Audi European Deliveries) were to be paid in full before picking up the car. Would that negate the CA rule? I wonder.
11-13-2006, 07:39 AM
#3
AudiWorld Super User
Thread Starter
Not my prior experience in CA
The sales tax was owing when the car came into CA, which was after it cleared customs and you went to register it. Back then you when to the port to get the car, and it was only then you walked it through customs and paid the duty. Then you went to the Dept of Motor Vehicles to get registered and get the plates. If all went well, the counter person said yes indeed, no tax was owing.
With delivery at the dealer now, things are different. But, don't be too surprised if the dealer doesn't really know what to do, particularly if they haven't been selling Porche's or something else with Eurpean delivery for the past 20 years.
With delivery at the dealer now, things are different. But, don't be too surprised if the dealer doesn't really know what to do, particularly if they haven't been selling Porche's or something else with Eurpean delivery for the past 20 years.
11-13-2006, 09:05 AM
#4
Thanks for the info. I think being that our order is
the first one, Audi has been tracking the order the whole time along with my dealer.......so far so good with no huge bumps. (crossing fingers)
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