Out of State Delivery

Discussion in 'Talkback' started by brdagg, Aug 30, 2006.

  1. brdagg

    brdagg New Member

    So what's the deal with buying a Class A Motorhome in CA and having it delivered in NV? I think it has something to do with paying CA state sales tax. And you can't bring it in to CA for 90 days, etc. ...

    Can someone please explain this to me/us?

    B and R
  2. hertig

    hertig Senior Member

    Re: Out of State Delivery

    I don't know the specifics about CA (although I seem to remember reading that they increased the time to 6 months or possibly even a year). However, if you make a purchase in any state, you are liable for Sales Tax. Some states have a reduced rate for some purchases (like a motorhome) and some states may have an extra (luxury) tax on the sale. Then when you go to register it, the whichever state you do this in may charge a flat rate, an amount based on weight, or an amount based on value.

    So, if you arrange the sale in one state, but take delivery in another, you may be able to avoid the first state's sales tax, and possibly the second state's as well. However, when you go to register it anywhere, they may try to recoup the missed taxes. It's a tricky situation, since most every state knows about this method of avoiding taxes, and most take a very dim view of it. One possible alternative is having a 'corporation' buy it and register it in a state which is corporation friendly. I think South Dakota is advertising this.

    But read all the fine print on what you must do and what you cannot do in this situation. If not, any state which can zap you, probably will. And I suspect many states will make it unpleasant for you to reside in the state with a vehicle registered in another.
  3. brdagg

    brdagg New Member

    Re: Out of State Delivery

    Thanks John! I really appreciate the input. This is helpful. We plan to go to a Fall RV Show here in Sept and will ask around as well at the event. Most people in the RV World here in CA seem to do this - and know of this practice.
  4. DL Rupper

    DL Rupper Senior Member

    RE: Out of State Delivery

    Montana is sales tax free, however, you do need to set up some kind of corporation to do it.
  5. rlmurraysr59

    rlmurraysr59 New Member

    Re: Out of State Delivery

    Usually the RV dealers in Montana have an attorney that will go through the details of buying a motorhome with out sales tax. I don't know exactly how it works but have met people who have done it. I would call a dealer in Montana and ask.

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